Pre-payment and Advance Payment Guarantee.

The Dilemma of Pre-payment. At the heart of many business transactions is a simple question: should a buyer pre-pay for goods or services? The obvious risk for buyers is that, after paying,...

Comparison between a Letter of Credit (LC) and an Advance Payment Guarantee (APG)

The Letter of Credit (LC) and APG

Both the Letter of Credit (LC) and the Advance Payment Guarantee (APG) are financial instruments used in international trade and other transactions to ensure trust and security between the buyer and the seller. However,...

The Open Account payment method

The Open Account payment method is one of the most straightforward and commonly used methods in international trade. It is more flexible and less stringent than Letters of Credit (LC), Advance Payment...

Documentary Collection as payment terms

“Documentary Collection” (often simply referred to as “document collection”) is a common method used in international trade where the bank acts as an intermediary without providing any guarantee of payment, which differentiates...

Understanding Non-Conformity Reports (NCR) in Procurement

A Non-Conformity Report, often abbreviated as NCR, is a document used in procurement and quality management to report any deviation from the agreed specifications, standards, or requirements in the products or services...

Why Buyers Typically Avoid Ex Works

Why Buyers Typically Avoid Ex Works and a Preferred Alternative In the intricate dance of international trade, the choice of delivery terms can significantly impact both the cost and risk borne by...

Delivery terms not found in Incoterms

In the world of global trade, clarity in shipping and delivery terms is of paramount importance. While Incoterms are the gold standard for this purpose, businesses often come across other terms in...

I failed at contracting. Tips from Stephan Morel

As Procurement Pros, we tend to dislike the contracting phase, often pointing fingers at the Legal team for their perceived slowness and rigidity. In my career, I’ve had to define, negotiate, and...

I failed at e-auctions. Now I know better!

I failed at e-auctions. My first e-auction was in 1997. Not the best experience I had; at that time, connectivity was a real issue. Since then, I have done, pushed, seen dozens of...

Understanding the “Entire Agreement” Clause in Procurement Contracts

The “Entire Agreement” clause, also known as a “merger” or “integration” clause, is a standard provision found in most contracts, including procurement contracts. Its primary purpose is to ensure that the written...

Category: Tactical procurement