Mastering Purchasing Management for Inbound Supply Chains

by Cook; Thomas A.

• ISBN13: 9781420086195
• ISBN10: 1420086197
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-11-08
• Publisher: CRC Press

Summary

Many of the lessons about inbound supply ' especially foreign purchasing ' are far less costly when learned through others' experience rather than your own. Leaving little to chance, international trade expert, Thomas Cook details all the basic fundamentals of logistics and compliance, while also offering essential insight that even seasoned supply managers will find valuable. He covers the importance of bonded warehouses and cost modeling. He presents case studies from a variety of industries that illustrate best practices while revealing those things that the savvy trader should know about foreign trade zones.

Table of Contents

Prologue	p. xiii
Acronyms	p. xv
Purchasing Management 101	p. 1
What Is Purchasing Management?	p. 1
How Does Purchasing Management Work?	p. 2
Purchasing Management and Corporate Governance	p. 2
What Makes Purchasing Managers Effective?	p. 3
Know What the Needs are of the Corporation Now and into the Future	p. 3
Know What the Options Are in Fulfilling These Needs	p. 3
Know How to Obtain the Best Deal to Fulfill These Needs	p. 4
Know How to Maintain These Deals for the Long Term	p. 4
Additional Best Practices in Purchasing Management 101	p. 5
Master Negotiation Skills	p. 5
Foreign Purchasing Management 101	p. 9
Why Is Foreign Purchasing Different from Domestic Purchasing?	p. 9
Distances Involved	p. 10
Demographics and Infrastructure	p. 10
Language	p. 11
Culture	p. 11
Politics	p. 11
In-Country Risks	p. 11
Receivable Exposure	p. 12
Currency Risk	p. 12
Insurance Risks	p. 12
Political Risks	p. 13
Legal Differences	p. 13
Logistics and Supply Chain	p. 13
Dependence on Providers	p. 14
Customs (Domestic and International)	p. 14
Regulatory Affairs	p. 14
Access to Qualified Personnel	p. 15
Travel Costs	p. 15
Sarbanes-Oxley	p. 15
Develop Resources	p. 15
Magazines	p. 15
Key International and Supply Chain Web Sites	p. 16
Risk Management in the Global Supply Chain and Foreign Purchasing	p. 22
Summary	p. 23
Import Logistics and Landed Cost Modeling	p. 25
Logistics Management	p. 25
Hire the Very Best Inbound Logistics Provider	p. 25
Know Your True Landed Costs	p. 26
Import Landed Cost Formula	p. 26
Control Lead Times	p. 27
Control the Most Favorable INCOTERMS of Purchase	p. 27
Exercise Due Diligence, Reasonable Care, and Supervision and Control over the Inbound Process	p. 31
Case Study in the Landed Costs in the Import Supply Chain	p. 31
Options in Reducing Landed Costs	p. 33
Import Compliance Management	p. 35
Import Management Overview	p. 35
Inbound Supply Chains Have Logistics Costs Escalate	p. 40
Detail to Documentation Was Much More Critical	p. 41
Purchasing Managers Had to Learn New Skill Sets and Establish SOPs in Areas Not Previously Prioritized	p. 42
The Air Carriers Suffered Greatly	p. 42
Financial Consequences to Importers and Global Supply Chain Participants	p. 43
Supply Chain Security and Compliance Management Becomes a New Corporate Concern	p. 43
Reasonable Care	p. 45
Supervision and Control	p. 46
Ultimate Consignee	p. 46
Powers of Attorney	p. 47
Due Diligence	p. 47
Record Keeping	p. 48
Documentation (Invoice) Requirements	p. 48
Methods of Storage of Records	p. 49
Assists	p. 50
Drawback	p. 51
Necessary Drawback Documentary Requirements	p. 52
HTS Classification	p. 52
Imported Product/Origin Markings	p. 53
Valuation	p. 53
Duties and Taxes	p. 53
ISF (10+2) Importer Security Filing	p. 54
Customs Bonded Warehouses	p. 57
What Is a Customs Bonded Warehouses?	p. 57
Types of Customs Bonded Warehouses	p. 58
Advantages of Using a Bonded Warehouse	p. 59
Merchandise: Entry, Storage, Treatment	p. 59
How to Establish a Customs Bonded Warehouse	p. 60
Application	p. 60
Other Requirements	p. 60
Bonds Required	p. 60
Where Are Customs Offices Located?	p. 61
Foreign Trade Zones	p. 63
What Is a Foreign Trade Zone?	p. 63
Why Were Foreign Trade Zones Established?	p. 63
Advantages of Using Foreign Trade Zones	p. 64
Role of the Foreign Trade Zones Board Staff	p. 65
Role of the U.S. Customs Service	p. 65
Role of the Port Director	p. 66
Frequently Asked Questions to CBP	p. 66
What Are the Types of Foreign Trade Zones?	p. 66
What May Be Placed in an FTZ?	p. 66
What May Be Done in an FTZ?	p. 67
What May Not Be Done in an FTZ?	p. 67
How Is Merchandise Admitted into a Zone?	p. 68
Customs Form 214 Application	p. 68
Direct Delivery	p. 69
What Documents Are Needed for Admission?	p. 69
How Is Merchandise Removed from a Zone for U.S. Consumption?	p. 70
What Are the Four Types of Zone Status?	p. 70
Articles of Mixed Status	p. 71
Where Is Additional Information Available?	p. 71
FTZs: Big-Time Competitive Advantage: An Overview	p. 71
Choosing Providers Best Practices	p. 73
Choosing Correctly	p. 73
Determine Your Needs	p. 74
Know Your Options	p. 74
Develop an RFQ/RFP	p. 75
Obtain Referrals	p. 75
Agree to Service Parameters First, Then Price	p. 75
Set a Review Period, before Long-Term Agreements	p. 75
Agree to Stewardship Reporting	p. 76
Periodically Test Your Options	p. 76
Focus on Technology Capabilities	p. 76
View Added-Value Benefits	p. 76
Partnership Mentality	p. 76
Stewardship Reports from Freight Forwarders: An Excellent Management Tool	p. 77
Organizing the Stewardship Report	p. 78
The Process of Selecting Freight Forwarders, Customhouse Brokers, and Other Service Providers	p. 78
Identify Your Expectations, Parameters, Needs, and Service Requirements	p. 79
Interview Potential Candidates	p. 79
Issue the Proposal Outline (RFP/RFQ)	p. 79
Set Deadlines for Responsiveness	p. 79
Eliminate the Peripheral Candidates and Bring the Selection Group from Eight to Ten Persons to Two or Three	p. 79
Meet Again	p. 80
Ask for Pricing and Final Revised Proposals	p. 80
Make the Selection: Set a Time for Testing the Relationship, before Making a Longer-Term Agreement	p. 80
Structure a Review Process	p. 80
Summary	p. 80
China and India	p. 81
What Is the HTCG?	p. 82
Successful Best Practices for Purchasing from China, India, and Other Emerging Countries	p. 83
What Purchasing Managers Need to Know about Exporting	p. 85
Department of Commerce (DOC)/Bureau of Industry and Security (BIS)	p. 88
U.S. Principal Party in Interest (USPPI)	p. 88
Export Licensing	p. 88
Denied Parties Screening	p. 90
Deemed Exports	p. 91
Antiboycott Compliance	p. 92
Department of Treasury/Office of Foreign Asset Controls (OFAC)	p. 92
Department of State (DOS)	p. 93
Managing TSA Regulations within a Logistics Organization	p. 95
Why Pay Attention?	p. 95
Audits	p. 96
Concluding Remarks	p. 97
Glossary	p. 99
	p. 107
	p. 159
	p. 303
	p. 363
Index	p. 389
About the Author	p. 401
Table of Contents provided by Ingram. All Rights Reserved.