11 th Global Supply Chain and Logistics Summit 28 Nov 2018 - - PowerPoint PPT Presentation
Presentation Title Trade-Logistics interfaces and related challenges Presented by: Krishnan Subramaniam FICS Head of Projects Fusion group of companies President ICS Middle East branch 11 th Global Supply Chain and Logistics Summit 28
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Presentation Title
Trade-Logistics
interfaces and related challenges
Presented by:
Krishnan Subramaniam FICS
Head of Projects – Fusion group of companies President – ICS Middle East branch
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Interfaces in International Trade
Merchant - Carrier Seller - Buyer Insurer - Assured
Contract of Sale Contract
Insurance Contract
Carriage Customs Clearance
Export-Import
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Contracts - Considerations
Physical nature of the goods
Movement of the goods
Division of costs Transfer of risk
Responsibility for task
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
SELLER BUYER SHIPPER CONSIGNEE BANKS CARRIER FORWARDER AGENTS PACKAGING INSPECTION PORT CUSTOMS WAREHOUSE CHAMBER
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Costs and Risk
How do you handle them?
TERMINATE
TAKE TREAT
TRANSFER
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Why? Assist trading What?
Responsibility of Carriage
Exp-Imp clearance
Costs & Risks
Title Payment Where? Sales Contracts When? from 1936 Who?
Potential issues?
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Real incident ..
Before
After
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
EXW
Transport by? From where? Loading by?
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Main Parameters
Documentation Document of Title Transport document Quality / Quantity reports Financial / Commercial Insurance Goods
Specific / Unascertained goods Quantity –
Unit/Range/Tolerance
Quality / Specification Inspections
Payment terms
Price Currency Mode of Payment Credit days
Time Limits
Credit validity Shipment / Delivery Document submission
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Common modes of transaction
– Documents against Acceptance – Documents against Payment
– Documentary Credits – Standby L/C
Balanced security for Seller and Buyer.
RISKS managed
Buyer Seller Country Exchange control
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Is L/C Risk-free?
1999 2003
Metals Trading Company, Sharjah
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
BLOCK CHAIN IN TRADE FINANCE TRACEABILITY TRANSPARENCY EFFICIENCY AUDITABILITY COLLABORATION SECURITY
28 Nov 2018
11th Global Supply Chain and Logistics Summit www.sclgsummit.org
Understand the 3 flows Align the various contracts Assess risks and mitigation measures Quantify residual risks