1st Edition

Mastering Purchasing Management for Inbound Supply Chains

By Thomas A. Cook Copyright 2011
    418 Pages 34 B/W Illustrations
    by CRC Press

    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.


    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?
    Distances Involved
    Demographics and Infrastructure
    In-Country Risks
    Receivable Exposure
    Currency Risk
    Insurance Risks
    Political Risks
    Legal Differences
    Logistics and Supply Chain
    Dependence on Providers
    Customs (Domestic and International)
    Regulatory Affairs
    Access to Qualified Personnel
    Travel Costs
    Develop Resources
    Risk Management in the Global Supply Chain and Foreign

    Import Logistics and Landed Cost Modeling
    Logistics Management
    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
    Reasonable Care
    Supervision and Control
    Due Diligence
    HTS Classification
    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
    Choosing Correctly
    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)
    Export Licensing
    Denied Parties Screening
    Deemed Exports
    Antiboycott Compliance
    Department of Treasury/Office of Foreign Asset Controls (OFAC)
    Department of State (DOS)
    Managing TSA Regulations within a Logistics Organization


    Thomas A. Cook