Logistics, Trade Administration and Supply Chain

The commercial invoice is the key accounting document describing the commercial transaction between the buyer and the seller. The commercial invoice includes the following elements: Name and address of the seller Name and address of the buyer Date of issuance Invoice number Order or contract number Purchase order number Quantity and description of the goods Unit price, total price, other agreed upon charges and total invoice amount stated in the currency of the contract or letter of credit Terms of delivery and payment Shipping details, including weight of the goods, number of packages and shipping marks Authorised signature of the company representative filling out the form Any other information as required in the sales contract or letter of credit Cautions and Notes for Documentary Letters of Credit In transactions involving a documentary letter of credit, it is vitally important that the description of the goods in the commercial invoice correspond precisely...

Sourcing is the location, acquisition and management of all the vital inputs required for an organization to operate. This includes raw materials, component parts, products, spares, labour in all forms, locations and services. Sourcing is therefore a key function of any business enterprise or organization and while successful sourcing does not necessarily translate to a successful business, unsuccessful sourcing almost always translates into a failed enterprise. A key to understand sourcing is that whether it is: a product or service; purchased in small lots or large quantities; pick up by a staff member from a local store during lunch hour or send along a 10,000 mile supply chain; acquire domestically or from a foreign supplier, it is sourcing. What is Sourced? If an organization spends money on it, it is sourcing. What is sourced includes, raw materials, component parts, intermediate products, supplies, tools, machinery, equipment, motor vehicles, energy, productio...

Order Fulfillment: Another activity area that logistics may control is order fulfillment, which generally consist of activities involved with receiving and completing customer orders. Initially, one might question why the logistics area would concern itself directly with order fulfillment. However, one important physical distribution factor is the time elapsing from the time when a customer decides to place an order for a product until the time those goods are actually delivered in a satisfactory condition, i.e. the lead time. Forecasting: Another activity essential to the logistics area is inventory forecasting. Accurate forecasting of inventory requirements and materials and parts is essential to effective inventory control. This is particularly true in companies using a just-in-time (JIT) or materials requirement planning (MRP) approach to control their inventory. Logistics personnel should develop forecasts in those situation to ensure accuracy and effective control. Too fre...