Importing finished products, components, and raw materials has become the status quo in today’s increasingly competitive business landscape. The lessons of inbound supply, however, can be very costly if learned through a trial-and-error approach—especially foreign purchasing. By not understanding the parameters of landed costs alone, purchasing managers can cause serious and expensive disruptions to their supply chain.
Leaving little to chance, Mastering Purchasing Management for Inbound Supply Chains details the fundamentals regarding logistics and compliance. It emphasizes the importance of bonded warehouses and cost modeling and presents case studies from a wide range of industries that illustrate best practices in imports, logistics, and landed cost modeling.
International trade expert Thomas Cook provides valuable insights for avoiding common foreign trade zone pitfalls. He also explains the best ways to handle and minimize landed costs, including duties, shipping costs, and transfer pricing.
This comprehensive purchasing guide covers the potential risks and complications involved with U.S. Customs (CBP), freight, INCO terms, and title and payment issues. Complete with a multitude of references to additional information in print and on the Web, the text provides the well-rounded understanding needed to avoid costly mistakes and make purchasing one of the strongest links in your global supply chain.
Table of Contents
Purchasing Management 101
What Is Purchasing Management?
How Does Purchasing Management Work?
Purchasing Management and Corporate Governance
What Makes Purchasing Managers Effective?
Additional Best Practices in Purchasing Management 101
Master Negotiation Skills
Foreign Purchasing Management 101
Why Is Foreign Purchasing Different from Domestic Purchasing?
Demographics and Infrastructure
Logistics and Supply Chain
Dependence on Providers
Customs (Domestic and International)
Access to Qualified Personnel
Risk Management in the Global Supply Chain and Foreign
Import Logistics and Landed Cost Modeling
Case Study in the Landed Costs in the Import Supply Chain
Options in Reducing Landed Costs
Import Compliance Management
Import Management Overview
Inbound Supply Chains Have Logistics Costs Escalate
Detail to Documentation Was Much More Critical
Purchasing Managers Had to Learn New Skill Sets and Establish
SOPs in Areas Not Previously Prioritized
The Air Carriers Suffered Greatly
Financial Consequences to Importers and Global Supply Chain Participants
Supply Chain Security and Compliance Management Becomes a New Corporate Concern
Supervision and Control
Duties and Taxes
ISF (10+2) Importer Security Filing
Customs Bonded Warehouses
What Is a Customs Bonded Warehouse?
Types of Customs Bonded Warehouses
Advantages of Using a Bonded Warehouse
Merchandise: Entry, Storage, Treatment
How to Establish a Customs Bonded Warehouse
Where Are Customs Offices Located?
Foreign Trade Zones
What Is a Foreign Trade Zone?
Why Were Foreign Trade Zones Established?
Advantages of Using Foreign Trade Zones
Role of the Foreign Trade Zones Board Staff
Role of the U.S. Customs Service
Role of the Port Director
Frequently Asked Questions to CBP
FTZs: Big-Time Competitive Advantage: An Overview
Choosing Providers Best Practices
Stewardship Reports from Freight Forwarders: An Excellent Management Tool
The Process of Selecting Freight Forwarders, Customhouse Brokers, and Other Service Providers
China and India
What Is the HTCG?
Successful Best Practices for Purchasing from China, India, and Other Emerging Countries
What Purchasing Managers Need to Know about Exporting?
Department of Commerce (DOC)/Bureau of Industry and Security (BIS)
U.S. Principal Party in Interest (USPPI)
Denied Parties Screening
Department of Treasury/Office of Foreign Asset Controls (OFAC)
Department of State (DOS)
Managing TSA Regulations within a Logistics Organization