PURCHASING AND ORDER PROCESS

 

PURCHASING AND ORDER PROCESSING FOR TIONG NAM

A purchasing process begins with how a customer wants to contact the seller to purchase their order, how the purchasing process works, and how the purchasing process could make it easier for the customer to access it. Customers can contact Tiong Nam through mobile phone or email. In this manner, the customer can purchase their service, and once both parties have agreed to make an agreement, the customer can drop all of the information via WhatsApp apps.

 

INCOTERMS

EXW (Ex Works) - When a customer hires a warehouse space to store their goods, Tiong Nam will make a clearance in the warehouse for the customer's goods. Tiong Nam does not need to pick up the goods; instead, the buyer will deliver them, and the buyer will be responsible for the transportation costs and the safety of the goods.

Figure 1.1 Summarization of EXW

 

DAP (Delivered At Place) - When Tiong Nam picks up the goods at the location specified by the buyer, all risks are transferred to Tiong Nam. All obligations must be met, and the carrier must take the delivery of the goods seriously.

Figure 1.2 Summarization of DAP

 

FCA (Free Carrier) - After the goods have been stored at the warehouse for a while, Tiong Nam will send the goods to the person designated by the buyer on the specified date. Because the obligations (terminal charges, loading on carriage, carriage charges, destination charges, delivery to destination, and so on) will be passed on to the buyer. As a result, it is strongly advised that the customer specify the delivery locations.

Figure 1.3 Summarization of FCA

 

TRADE FINANCE

Insurance - As stated by a Tiong Nam representative, the buyer bears all risks. The purpose of purchasing insurance is to ensure that the risk received has little impact on the risk taker. Non-payment of goods, non-delivery of goods, theft, and damage to goods from any cause are examples of risks that may occur.