Optimizing the usage of Incoterms 2010 : the Case of Topcon Europe Medical B.V.
Kuusamo, Villehart (2017)
Kuusamo, Villehart
Tampereen ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017100615792
https://urn.fi/URN:NBN:fi:amk-2017100615792
Tiivistelmä
Globalization has opened new markets to companies and shaped domestic trade more international. New market entries have also brought new challenges to deal with based on culture differences and legalization and restriction of destination countries. Nowadays, the way to trade has become one of the important competitive factor in global business environment. In order to unite the business between the parties International commerce term was created by International chamber of commerce. To select the most suitable Incoterm creates the basis of parties' business and provides clear rules to all the parties during the trade.
The purpose of this thesis is to help to investigate possible Incoterms 2010 and find out the most suitable Incoterms that would optimize the current operation of Topcon Europe Medical B.V. with the aim of improving the current trade between distributors and subsidiaries as well as combining Incoterms with the different payment methods and documentation to smooth synthesis. The thesis provides also guidance in the replacement of new Incoterms and increase the knowledge of delivery conditions for example how to take advantages of choosing the right Incoterm.
Theoretical part is fulfilled through the research by examining the current operation and business procedures related to four main categories; transportation, warehouse, custom documentation and payment terms and -methods. At the end of research the consequences of replacement of new Incoterms are described by using Cost and benefit analysis and calculations. These methods help to observe the requirements in order to overcome the negative outcomes of implementation. In addition improvement suggestions are introduced. Chosen solution and improvement suggestions have been examined by using cause and effect mindset and analysis. Through the research quantitative and qualitative data is utilized in order to make the research reliable and inclusive. The data is captured from the warehouse of Topcon Europe and multiple literal sources and professionals.
The findings suggest that the main challenge occurs with MEA distributors which need to be improved by selecting new Incoterm that would provide more power for Topcon Europe Medical B.V. in order to shorten the lead times as well as enhance the payment process. Besides Ex work would also be useful to upgrade more flexible solution with European distributors and subsidiaries to bring the rules closer to current operation. In order to optimize the usage of Incoterms, old Incoterms should be replaced and required organizational changes need to be taken into action.
The purpose of this thesis is to help to investigate possible Incoterms 2010 and find out the most suitable Incoterms that would optimize the current operation of Topcon Europe Medical B.V. with the aim of improving the current trade between distributors and subsidiaries as well as combining Incoterms with the different payment methods and documentation to smooth synthesis. The thesis provides also guidance in the replacement of new Incoterms and increase the knowledge of delivery conditions for example how to take advantages of choosing the right Incoterm.
Theoretical part is fulfilled through the research by examining the current operation and business procedures related to four main categories; transportation, warehouse, custom documentation and payment terms and -methods. At the end of research the consequences of replacement of new Incoterms are described by using Cost and benefit analysis and calculations. These methods help to observe the requirements in order to overcome the negative outcomes of implementation. In addition improvement suggestions are introduced. Chosen solution and improvement suggestions have been examined by using cause and effect mindset and analysis. Through the research quantitative and qualitative data is utilized in order to make the research reliable and inclusive. The data is captured from the warehouse of Topcon Europe and multiple literal sources and professionals.
The findings suggest that the main challenge occurs with MEA distributors which need to be improved by selecting new Incoterm that would provide more power for Topcon Europe Medical B.V. in order to shorten the lead times as well as enhance the payment process. Besides Ex work would also be useful to upgrade more flexible solution with European distributors and subsidiaries to bring the rules closer to current operation. In order to optimize the usage of Incoterms, old Incoterms should be replaced and required organizational changes need to be taken into action.