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Content
TOC\o"1-3"\h\u
17141
1.Introduction
2
1302
2.TheStrategicRoleOfTheIPDInReducingCosts
2
28747
3.TheObjectivesofTheIPDinMakingaDecisiontoSourceOversea
3
23184
4.TheComponentsoftheFirm’sInternationalPurchasingCycle
3
5630
5.TheRelationshipsBetweenPurchasingandOtherDepartment
4
15155
6.TheContributionoftheIPDtotheAppraisalofOverseasSuppliers
5
12941
7TheNeedforPaymentDocumentationWhenImportingGoods
6
3903
8.TheImpactofIncotermsForthePriceofImportedGoods
7
2516
9.Conclusion
8
7491
10.Reference
9
1.Introduction
Thereportcallsforinternationalprocurementandsupply.Thiswillexplaintheinternaloperationofthepurchasingdepartment.
Howtoreducecost,whythereportwillevaluatetheIPDIPDchoosepurchasedoverseas,thecompany'sinternationalcirculationintheprocessoftheIPDandtherelationshipbetweentheotherdepartments,suchasfinance,therelationshipbetweentheR&DofIPD.Inadditiontothese,thereportwillanalyzehowtoevaluatesuppliers,andtheimportantpaymentdocumentationwhenthecompanytoimportgoods.Lastbutnotfurther,Incoterms,itwillintroducetotheastheFOB,CIFandothers.
2.TheStrategicRoleOfTheIPDInReducingCosts
IPDininternationalprocurementanddomesticroleofIPD'srole,asthesameisforthepurposeofreducingcosts.Overall,IPDneedtofindtherightpriceforthegoodsandthesupplierforthecompany.SoIPDshouldworkwithmanydepartments,suchasthesupplychaininthissector.Therearemanywaystosavecosts,one(WilliamandNancyYoung,March30,2007)isaveryeffectivewaytoreducecostssuchascentralizedprocurement.Willfocusontheneedsofvariousdepartmentstogether,theprocurementunitcanbeusedasweightstogetabetterpricewithalargerquantitydiscountpurchases.Afterstandardizationspecificationscanbeobtainedvendorstandarddiscountedprices,inventorycanberelativelyreduced.Thus,administrativecostwillbereducedduetotheharmonizedoperationalprocurement,purchasingdepartmentwillbeabletohavemoretimetoresourcesonthedevelopmentofnewsuppliers.
Reducecycleisalsoapopularandpracticalmethodtoreducecosts.Thisisbecause,ifthecompaniestoreducethecycletime,thesupplychainwillbemoreefficient,
Purchasingneedtoworktogetherwiththedepartment,inordertoensuretheoperationoftheorganization.Atfirst,thedesigndepartmentshouldworktogetherwithR&Ddepartmenttoensurethatthedesignisfeasibleandsuitable.MinistryofFinanceisdesignedtohelpcalculatethecostandPurchasingwillofferthesupporttotheDesignandTheDesignDepartmentcanmakeaperformancefeedbackandasksomerequirementforthePurchasing.Secondly,theR&DdepartmentneedcooperatewiththePurchasing.ThisisduetothattheR&Ddepartmentneedrawmaterialandinformation,thusthePurchasingcanpurchasethematerialfortheR&DandmakeainitialsurveyofsuppliertoobtainsomeinformationtohelptheR&Dimproveandcreatemoregreatproducts.Inthenext,Purchasingdepartmentsmustsubmitprocurementplansandwaitfortheaudit,thefinancialsectorwillprovidethefundsneededforthepurchasingdepartment.finallytheFinancewillmakesurethecostwithinthebudgetsandagreethemakeorbuydecision.
TheContributionoftheIPDtotheAppraisalofOverseasSuppliers
AgoodsupplieriscriticaltoIPD,theIPDshouldthereforepotentialperformance,financialandotheraspectsoftheinvestigationandevaluationofsupplierstoensurethatthecompany'sprofits.Therearemanywaystoevaluatepotentialsuppliers.
First,theabilityofsupplierstosolvetheproblem,becauseitistheoverseasbuyerssotheremaybealotofproblemsoccur.Therefore,ifthesupplierhasagoodabilitytodealwiththeproblem,IPDpressurewillbereduced..Nextoneisthecorrectiveactionresponse,ifthesupplierdeliverthewrongproductormaterial,theresponseandcorrectivewillaffecttheappraisalofsupplier,iftheresponseisveryfast,thebuyerlosswilldecrease,sotheIPDwillprefertochoosethissupplier.third,theabilityoftechnologysuppliersandtechnologyupdateisalsoveryimportant,ifthesuppliercancontinuouslyupdateandensurethetechnicalqualityoftheproduct,whichcangivethebuyeragoodimage.Thesuppliercost-reductionideas,ifthepotentialsupplierhasacost-reductionideas,thismeantthatthesupplierwilltakemoreactiontoimprovethetechnologyorsystemtoreducethecost,itisbenefitforthebuyerduetothatitwillreducethecostofpurchasing.Ifthepotentialsuppliersupportnew-product,itwillbeverygoodandbuyerwilllikethissupplier,thisisbecauseitcansavetimeandcostforthepurchasertofindnewsupplier.Atlast,thecompatibilityofbuyerandsellerwilldecidethefuturedevelopmentandthepossibilityofcooperation.
Ofcourse,inadditiontothese,financialcondition,productionfacilities,willalsoaffecttheoverallqualityofperformanceassessment.Stablefinancialsituationandhasahugefacilitytoimprovetheabilityofsuppliers.Therefore,buyersprefertochoosethissuppliercollaboration.
7TheNeedforPaymentDocumentationWhenImportingGoods
Delaysandprofitprotectionoftheimportingcountry,whetherimportedorexportadocumentwhenaveryimportantright,thecorrectdocumentstoavoidgoods.Meanwhile,,thebuyerandsellermusthasacontracttostatethedocumentationanddecidethecurrency.Paymentdocumentwillalsohelpprovidethenecessaryimportscorrectimport,importdutiesandtaxes.Forexamplethereareseveralpaymentdocumentssuchascommercialinvoices,packinglists,certificatesoforiginandbillsofladingorairwaybill.
First,theimporterofthecommercialinvoiceisessential.Thecommercialinvoiceisusedasacustomsdeclarationprovidedbythepersonorcorporationthatisexportinganitemacrossinternationalborders.Itwillreflectthevalueofthepricingorgoods.Importersneedtousethedocumentsforimportdeclaration.Afterthecustomcheckandcorrect,theimportercanreceivethegoods.Second,iftheexporterhasthecertificateoforigin,theywillenjoypreferentialimporttariffs.Thus,theimportercanusethedocumentationtoasklowerpriceofimportandofferittocustomandreducethetariffs.Atthesametime,theimportingcountrycanuseittomaintainqualityandavoidcounterfeitthirdcountries.Third,thepackinglist("Packinglistdefinition".B.Retrieved2009-01-29.)Isalsousefulfortheimporter.Detailedpackinglistincludesthenumberofparcelsofgoods,size,grossandnetweightoftheshipmentofthemarks,thenumberofunitsperparcel.Thecustomwillusethedocumentationtoinspectcargoandimporteruseittocheckthegoods.Finally,thebilloflading(Levi,MauriceD.2005)isadocumentissuedbyacarrierwhichdetailsashipmentofmerchandiseandgivestitleofthatshipmenttoaspecifiedparty.[1]Billsofladingareoneofthreeimportantdocumentsusedininternationaltradetohelpguaranteethatexportersreceivepaymentandimportersreceivemerchandise.Astraightbillofladingisusedwhenpaymenthasbeenmadeinadvanceofshipmentandrequiresacarriertodeliverthemerchandisetotheappropriateparty.Anorderbillofladingisusedwhenshippingmerchandisepriortopayment,requiringacarriertodeliverthemerchandisetotheimporter,andattheendorsementoftheexporterthecarriermaytransfertitletotheimporter.Endorsedorderbillsofladingcanbetradedasasecurityorserveascollateralagainstdebtobligations.
TheImpactofIncotermsForthePriceofImportedGoods
Ininternationalcommercialtransactions,therearemanyinternationalIncoterms.Itdefinestherightsandobligationsofthepartiestothetrade.Inparticularitwillbethedefinitionofthetransactionandtransportationcosts,customsdutiesandinsurance.Incotermshavefourgroups,groupE,F,C&D.TheEXW,FCA,FOB,FAS,CFR,CIF,CPT,CIP,DAF,DES,DDUandDDP.TheseinternationalIncotermswillaffectnotonlythegeneralruleistheimportofcommoditiesandcommodityprices.
Forexample,CFRandCIF.TheCIFiscost,Insurance&Freight.Sellersneedtopayshippingandinsurance,buttheriskwillbetransferredtothebuyerupondeliveryofgoodsbecausetheship.Thebuyerwillpaythesellerimportdutiesandexporttaxesarepaid.TheCFRisthecostandfreight,.Thebuyerwillneedtopurchaseinsuranceandriskcargobeforeleavingtheportinandobtainimportlicenses,paymentofimportduties.Sellersneedtopaytransportationcosts,exportlicensesandexportdutiesandtaxespaid.BycomparingthesetwointernationalIncoterms,youcanfindsomeinternationalIncotermsimpactonpricesofimportedgoodsreason.First,CIFpriceishigherthantheCFR,whichisduetothesellertopaytransportationcostsandinsurancepremiums.ButCIFselleronlyneedtopaytransportationcosts,therefore,CIFpriceissignificantlyhigher.InotherinternationalIncotermsimpactisobvious,suchastheDgroup,whichhasmoreresponsibility,butalsoneedstoimportdutiespaidbytheseller,sothepricewillbehigher.
9.Conclusion
ThereportassesseshowtoreducethecostofIPD,IPDWhychooseoverseasprocurement,theproces
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