Optimizing Ink Procurement- Strategic Shipping Terms for Minimizing Risk in International Contracts

Optimizing Ink Procurement- Strategic Shipping Terms for Minimizing Risk in International Contracts

Minimizing Risk of Loss for the Buyer

Regarding my duties as the manager, I carried out an investigation and found out that the ink that our company uses can be found from another supplier. Buying from this new supplier would be more advantageous than buying from the usual suppliers. Thus, I find it necessary for us to establish trade relations and sign a contract with the new supplier. However, several aspects should be captured in the shipping contract so that we can minimize losses as the buyer. Below are a few terms that must be included in the shipping contract to minimize the losses. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Free On Board (FOB) destination: One of the terms that should be included is, Free on board (FOB) destination. The delivery of the goods under this agreement should be delivered free on board destination. This clause means that the supplier would bear all the costs that may arise during shipment, and the buyer will not be liable to any loss. When the shipping liabilities are transferred to the supplier rather than the buyer, the company would have minimized the costs.

Delivery terms: The second clause that should be included in this contract is, “all goods to be delivered to the terms of this agreement shall be suitably packaged for shipment and shipped to the customer’s destination.” This clause means that the supplier must package the goods as per the buyer’s specifications. If the supplier packages the goods contrary to our expectations, then they will be in breach of contract. This way, the company would minimize packaging and un-packaging costs when the goods are packed as required.

Title and transfers of possession of goods: Under this element, we should include the clause that states that “according to this agreement, the transfer of the title to the goods will only be deemed successful when the goods have reached the buyer’s destination, and the buyer verified satisfactorily”. This clause will help the company cut and evade some unforeseeable costs that come with the low quality of the delivered goods or goods damaged during the shipping process.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2021). Purchasing & supply chain management. 7th edition. Boston, MA: Cengage

Shaunessy, P. Shipping terms. Retrieved from  https://kirasystems.com/contract-central/shipping-terms/

Schrumpf, B. (2019). Minimizing Freight Broker Liability for Loss or Damage to Cargo. The Fuentes firm. Retrieved from https://fuentesfirm.com/freight-broker-liability-for-loss-or-damage-to-cargo/

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Overview:
In Unit 7, you are learning about sales contacts and ways in which businesses can limit the risk of loss. In this assignment, you will analyze a commercial transaction to determine what contract terms should be included in order to minimize the risk of loss for the buyer.

Optimizing Ink Procurement- Strategic Shipping Terms for Minimizing Risk in International Contracts

Instructions:
Imagine that you are a manager in a commercial printing company, and you have found a good deal on the ink that your company uses most frequently from a supplier in Japan.
• Using the materials from this week’s reading as well as the supplemental resources, consider what shipping terms you should insist on in the contract in order to limit the risk of loss for your company.
• Using the attached Memo template, draft an interoffice memo to the owner of the
company describing