Purchase


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Type of trades: Deals with or without physical delivery of goods.
Incoming goods: Passing of ownership and booking of goods depend on the type of procurement
Procurement by sea-going vessel: at the time of acceptance of documents
Procurement by lorry truck and inland ships: at destination
Invoices:
Invoice for part payment (provisional invoice) based on percentages previously agreed on
Final invoice
Settlement after analysis including price corrections
Settlement according to base volume agreed on (volume dispatched or received volume)
Planning & Scheduling:
Procurement truck: Total volume with several collections in agreed periods (days, weeks, months)
Procurement inland ship: as for truck
Procurement sea-going vessel: Time for transport/delivery ca. 2 months. Optimization (see below) required.
Optimization:
Time-wise: time of delivery
Quantitative: revised demand
Qualititative: poor and good qualities can be substituted
Objectives of using of Commodities@icm:
Speedier processing
Taking advantage of price differences in variations in qualities and products within a time frame
Reduction of cost for storage and handling