Purchasing & Order Processing

The basic of a purchasing process is by starting with how a customer wants to contact seller to purchase their order, how does the purchasing process work, and how the purchasing process could make customer easier to access to it. As for Tiong Nam, customer can reach out to them by mobile phone or email. That way the customer can purchase their service, and after both parties agreed to make an agreement than the customer drop all the information via WhatsApp apps.

(INCOTERMS)

EXW (Ex Works) – For Tiong Nam, when the customers are hiring the warehouse spaces to put their goods, Tiong Nam will make a clearance in the warehouse for the customer goods. Tiong Nam doesn’t need to pickup the goods instead the buyer itself will deliver it and the transportation cost and safety of the goods will be handle by the buyer themselves.

Figure 1.1 Summarization of EXW


FCA (Free Carrier) – After awhile the goods been stored at the warehouse, on the given date Tiong Nam will send the goods to the person nominated by the buyer. Since the obligations (terminal charges, loading on carriage, carriage charges, destination charges, delivery to destination, etc..) will be pass to buyer to cover it. So, it is well advised to the customer to specify the places to be delivered.

Figure 1.2 Summarization of FCA


DAP (Delivered At Place) – When Tiong Nam have picked up the goods at place mentioned by the buyer, all the risks are passed to Tiong Nam. All the obligations need to be pay, and the carrier should take seriously in deliver the goods.

Figure 1.3 Summarization of DAP


(TRADE FINANCE)

Insurance – As said by Tiong Nam representative, all the risks are bear by the buyer. The reason of taking the insurance is to make sure the risk receive does not affect much to the risk taker. Example of risk that may happens are, non-payment of goods, non-delivery of goods, theft, and damage of goods from any cause.

Comments

  1. beside WhatsApp, do Tiong Nam have any other application that customer can use to put their information?

    ReplyDelete
    Replies
    1. WhatsApp is the only application used since it help customer to drop their information easier

      Delete
  2. How insurance help Tiong Nam to stay to their budget

    ReplyDelete
    Replies
    1. When incident happen, insurance helps to cover all the cost

      Delete

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