Delivery Terms
General Introduction
In international trade, Delivery Terms outline the responsibilities and obligations of both the seller and the buyer regarding the transportation of goods. These terms, often referred to as Incoterms (International Commercial Terms), help clarify who is responsible for paying for shipping, insurance, customs duties, and other logistics costs. They provide a standardized set of terms that ensure both parties understand their roles and avoid confusion.
Understanding and defining delivery terms are crucial to streamline shipping operations, ensure smooth transactions, and avoid potential legal issues. This article will walk you through how to access, configure, and apply delivery terms to retailers, orders, and specific transactions in your system.
Accessing Delivery Terms in Turis
To access and manage Delivery Terms, follow these steps:
- Navigate to the Shipping Section:
- Click on Shipping, and then select Delivery Terms.
- View the Delivery Terms Page:
- Your screen will now display the Delivery Terms interface.
Setting Default Delivery Terms
You can configure default delivery terms that will apply to all new retailers in your shop. Here’s how:
- Click on the 'Select Delivery Terms' dropdown menu to view the available options.
- Choose from a list of standard Incoterms or create a custom delivery term.
- To create a custom delivery term, click 'Create new delivery terms'.
- Enter the name of the new delivery term and click Save.
Standard Incoterms
Below is a list of the most commonly used Incoterms, which define the responsibilities of both buyers and sellers regarding shipping, delivery, and customs:
- EXW (Ex Works): The seller makes the goods available at a specified location, but the buyer covers transportation costs.
- FCA (Free Carrier): The seller delivers the goods to a carrier at a location agreed with the buyer.
- CPT (Carriage Paid To): The seller pays for transportation costs to a specified location, but the risk transfers to the buyer once the goods are handed over to the carrier.
- CIP (Carriage and Insurance Paid To): The seller pays for transportation and insurance, but risk transfers to the buyer after goods are delivered to the carrier.
- DAP (Delivered at Place): The seller covers all costs and risks up to a specific location, but the buyer is responsible for import duties and taxes.
- DPU (Delivered at Place Unloaded): The seller is responsible for delivery and unloading at a specific place.
- DDP (Delivered Duty Paid): The seller assumes all risks and costs, including duties and taxes, until the goods are received by the buyer.
- FAS (Free Alongside Ship): The seller delivers the goods alongside the vessel, where they are ready for transfer.
- FOB (Free on Board): The seller is responsible for goods until they are loaded onto the ship, after which the buyer assumes risk.
- CFR (Cost and Freight): The seller covers the cost and freight to bring goods to a destination port.
- CIF (Cost, Insurance, and Freight): The seller covers the cost, freight, and insurance to deliver goods to a destination port.
Retailer-Specific Delivery Terms
You can also define delivery terms that apply specifically to individual retailers. To do this:
- Go to Users and select Retailers.
- Choose the retailer to which you want to apply the delivery terms.
- Click on the 'Delivery term' dropdown menu and select the appropriate delivery term.
- Click Save to apply the delivery term to that retailer.
Adding Delivery Terms to Specific Orders
You can assign delivery terms to individual orders after they’ve been placed. Follow these steps:
- Navigate to Orders in the left-hand menu.
- Find the specific order and click to open it.
- Under the 'Select Delivery Terms' dropdown, choose the delivery term you want to apply.
- Click Save to update the order with the new delivery term.
By clearly defining delivery terms, you ensure a smooth and predictable flow of goods, protecting both buyers and sellers. Understanding these terms and how to apply them in your system is essential for managing international transactions and enhancing operational efficiency.