Question

 

What are Incoterms, and how are they used?

What is accessibility?

What is transit time?

What is reliability?

What are some commonly used transportation metrics?

Answer 1

1: Incoterms:- This are international commercial terms which is used in commercial shipment between two entities . This is set of pre defined terms which is approved by International commercial law.It describes about the responsibility and accountability of each parties in a shipment and  what to do with respect to carriage of the goods from the buyer to seller, and export & import clearance. The Incoterms rules are intended majorly to clearly communicate the various tasks, costs, and the risks associated with its  global or international transportation and also on the delivery of goods. It covers the responsbility with regards to payment of freight, duties, customs clearance, taxes, insurance etc. Some of the major Incoterms are Exw, CPT, CIP,DDP etc.

EXW:- It is called Ex works Incoterm where the seller makes the goods available at the customers  premises, or at their another named place. In this incotmer   the maximum obligation on the buyer and minimum obligations is with the seller.

DDP:Seller is responsible for delivery of good and is resposnbile for paying freight cost, taxes, duties etc but not responsible for unloading.

2:-Accessibility:- This stands for easiness of transportation with respect to safe, secured, economical and availability. Accessibility also stands for affordability with respect to cost When a place is more accessible which means the connectivity of modes of transportation has various options like rail, road, connectivity and availability of fleets of transportation to use.

3:-Transit time:-Transit time is the  planned travelling time from port to port. This depends on distance, routes considered, mode of shipment , availability of fleets and other accessibility factors. This is one important criteria for logistics.

4:-Reliability:-Reliability in any process refers overall consistency of a measure. A process is said to have a high reliability if it can produces similar results under consistent condition all time. In supply chain reliability refers to the higher degree to which a supply chain can yields their consistent performance. The increase in reliability can reduce the uncertainity as well as cost .

5:-The major transportation metrics are

• On time delivery of goods
• Transit time taken for shipment
• Cost of freight per shipment
• Cost per kilograms, or pallet or m3
• Number of careers per shipment
• Accuracy of freight payment