Page 279 - DMGT545_INTERNATIONAL_BUSINESS

International Business

Notes also supported by a forecasting function. As of Release 3.0, the planning functionality of the
information systems and the component Sales and Operations Planning (SOP) were combined
and enhanced to make one central planning and forecasting tool.
One can use the Logistics Data Warehouse in Customizing to design the Logistics Information
System to meet your own requirements. This tool allows you to customize the setup of the data
basis for your information system, to define the rules for updating the data and to generate the
standard analyses for evaluating the data.
The Early Warning System is integrated in all of the information systems and is based on the
key figures of the information system. The Early Warning System supports the decision-making
process by allowing you to target and monitor weak areas in logistics. It searches for exceptional
situations and helps in the early detection and correction of undesirable situations.

The Logistics Information Library is a further component of the Logistics Information System.
The Logistics Information Library makes it possible to access key figures in LIS by using simple
search strategies. In addition, the Logistics Information Library allows you to catalog the key
figures.

Task What services do freight forwarders provide?

14.5 Incoterms

When global companies enter into contracts to buy and sell goods they are free to negotiate
specific terms. These terms include the price, quantity, and characteristics of the goods. Every
international contract also contains what is referred to as an Incoterm, or international commercial
term. The following incoterms are commonly used in international logistics:
14.5.1 Rules for any Mode of Transport

ExWorks (EXW): The seller fulfills his obligations by having the goods available for the buyer to
pick up at his premises or another named place (i.e. factory, warehouse, etc.). Buyer bears all risk
and costs starting when he picks up the products at the seller’s location until the products are
delivered to his location. Seller has no obligation to load the goods or clear them for export.
Free Carrier (FCA): The seller delivers the goods export cleared to the carrier stipulated by the
buyer or another party authorized to pick up goods at the seller’s premises or another named
place. Buyer assumes all risks and costs associated with delivery of goods to final destination
including transportation after delivery to carrier and any customs fees to import the product into
a foreign country.
Carriage Paid To (CPT): Seller clears the goods for export and delivers them to the carrier or
another person stipulated by the seller at a named place of shipment. Seller is responsible for the
transportation costs associated with delivering goods to the named place of destination but is not
responsible for procuring insurance.
Carriage and Insurance Paid To (CIP): Seller clears the goods for export and delivers them to the
carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible
for the transportation costs associated with delivering goods and procuring minimum insurance
coverage to the named place of destination.

Delivered at Terminal (DAT): Seller clears the goods for export and bears all risks and costs
associated with delivering the goods and unloading them at the terminal at the named port or

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