The Global Trade Import Cycle

The Global Trade Import Cycle

• Supplier Selection
  This stage would utilize Strategic Sourcing
• Purchase Order Generation
  Via the buyer's e-Procurement system.
• Transport Insurance
  Preferably by way of a 3^rd party.
• Financing
  Either through a letter of credit, open account, or other form of an acceptable promisory note.
• Carrier Selection
  Who is going to ship the product and how are they going to ship it?
• Document Creation
  Foreign Customs, affected Government Bodies, Ports of Exit, and Carriers, to name a few, are going to require the proper documents before the goods will be allowed to move.
• Goods Departure
  Once the paperwork is in order, the goods are loaded and they leave the supplier's warehouse.
• Shipment Tracking
  Probably using RFID and an on-line web-portal that lets the buyer know when their goods reach certain checkpoints.
• Importation
  Assuming the buyer created the appropriate documents for Customs, affected Government Bodies, Ports of Entry, and local carriers, and, gave appropriate notice, the goods clear customs and begin the final stage of their journey to the warehouse.
• Goods Receipt
  The goods are received and a receipt is sent to the supplier's system.
• Invoice Receipt
  An invoice, generated by the supplier's system, arrives in the buyer's e-Procurement system.
• Reconciliation
  3-way matching is performed against the purchase order, goods receipt, and invoice and, if everything checks out, the purchase is approved for payment.
• Payment
  An electronic payment is sent to the supplier through an e-Payment system or gateway.
• Tax Reclamation
  If the purchases included refundable value added tax, for example, the appropriate data is collected and documentation created for tax reclamation.