Merry Christmas & Happy New Year

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Wishing all my friends, colleagues, customers, vendors and readers a Merry Christmas and Happy New Year.

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Value-Added Role of Logistics

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Form Utility . It refers to the value added to goods through a manufacturing, production or assembling process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for instance, when a bottling company adds together syrup, water and carbonation to make a soft drink. The simple process of adding the raw materials together to produce the soft drink represents a change in product form that adds value to the product. In today's economic environment, certain logistics activities can also provide form utility. For example, breaking bulk and product mixing, which typically take place at distribution centres, change a product's form by changing its shipment size and packaging characteristics. Thus, unpacking a pallet of breakfast cereal into individual customer size boxes form utility to the product. However, the two principal methods in which logistics adds value are in place and time utility...
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Payment Method: Open Account and Consignment Account

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Under this arrangement, the seller gives a certain credit period to the buyer to pay the purchase price of the goods for example 60 days after the shipment of the goods or 30 days from the invoice date and so on. The goods are forwarded directly to the buyer. The invoice, insurance policy and shipping documents like bill of lading, delivery order or airwaybill are also dispatched directly to the buyer to enable him to take delivery of the goods and dispose of them. On agreed due date, the buyer makes payment accordingly. The open account payment method is commonly practiced in trading within the country i.e. local trade. Factors to be considered are: The Buyer Compliance of the contract requirements such as prompt delivery of the goods to third party buyers; prompt payment on the respective due dates to continue good track records, Foreign exchange risk. The Seller Payment made only after shipment or delivery; Buyer's credit risk and integrity; Buyer's country risk - exchange c...
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