The Process Flow of Orders

Following the order’s acceptance, the agent makes and then stores copies of the order for information retention and emergency retrieval purposes. The seller’s accounts department then confirms the product can still be made available for the estimated cost. The seller’s finance department confirms the price and terms of payment with the buyer, the buyer’s credit rating, the cost of insurance, feasible and minimum margins, and the use of performance and warranty bonds (if any). Pending satisfaction of these conditions, the production department commences production, ideally to order delivery schedule. The production department sends details of the packaging requirements to the freight forwarder, who then returns an estimate covering the packaging, transportation, shipping, and insurance. The seller prepares the product for sale, and provides the freight forwarder with any other details relating to special requirements such as handling and fragility. The documentation is checked, as is the insurance, for accuracy of content, coverage, and clauses.

 The production department provides regular progress reports so both buyer and seller can monitor the schedule of projected delivery against the original despatch forecast. The finance department might check the buyer’s credit rating again (in case the buyer’s circumstances have changed, which can happen if the production period extends beyond a few weeks). At completion of production, if the seller wishes to proceed with shipping, the freight forwarder initiates the necessary packing, transportation, shipping, and insurance procedures, and checks that the details all shipping requirements are provided. The Chamber of Commerce will request Certificates of Origin and other forms of legislative documentation. Either the seller or the forwarder will provide them. The freight forwarder arranges collection and despatch of the goods, collates all relevant documents, drafts the bill of lading, and makes copies of and attaches all invoices and certificates. When the buyer receives notification of the order’s readiness for despatch, the buyer returns confirmation and/or a statement of acceptance. If payment is by credit, several important checks have to be performed (see Checklist 1).

At this point, the first of two lists of checks will likely be carried out. The following is the first. It covers the preparation of goods/cargo for international shipment: