Introduction
Delivery terms in ProdSys define the conditions under which goods are transported from the seller to the buyer, determining the responsibilities and risks of both parties. These terms are essential for ensuring clarity in contracts, reducing disputes, and streamlining the logistics of order fulfillment. This guide provides an overview of how to manage and configure delivery terms in ProdSys.
Purpose of Delivery Terms
The main purpose of delivery terms is to clarify the responsibilities regarding shipping, including who bears the cost of freight, insurance, and duties. Delivery terms are particularly important in international trade, where misunderstandings can arise due to varying legal regulations across countries.
Accessing Delivery Terms in ProdSys
To manage delivery terms in ProdSys:
Login: Start by logging into your ProdSys account with your credentials.
Navigate to Delivery Terms: From the main menu, go to System > Settings > Delivery Terms. This will open the list of available terms, as shown in the image.
https://app.prodsys.com/#/settings/delivery-terms
Key Features of the Delivery Terms Page
Code: This column displays the internationally recognized delivery term codes, such as "EXW" for Ex Works or "CIF" for Cost, Insurance, and Freight. These codes are typically based on Incoterms® standards.
Name: The name of each delivery term explains the meaning of the code. For example, "CPT" stands for "Carriage Paid To," which means the seller pays for transport to the destination.
External Code: This column allows linking delivery terms to external systems, ensuring compatibility with other software solutions used for logistics or invoicing.
Default: The checkbox in this column allows you to set the default delivery term for all new orders. The default term will be automatically applied unless a specific term is selected.
How to Configure Delivery Terms
Adding a New Delivery Term:
Click the "+" button at the top-left corner to create a new delivery term.
Enter the Code for the delivery term (e.g., EXW for Ex Works).
Fill in the Name to describe the delivery condition.
Optionally, add an External Code to integrate the term with third-party systems.
If this term will be used most often, check the Default box.
Click Save to store the new delivery term.
Editing an Existing Delivery Term:
To edit a delivery term, click the three dots next to the term you want to modify.
Here, you can update the code, name, or external code, as well as change which term is marked as default.
Setting a Default Delivery Term:
If a delivery term is used frequently, it can be set as the default by checking the "Default" box in the list. This will ensure that the term is automatically selected for new orders.
Deleting a Delivery Term:
To delete a term that is no longer needed, click the three dots next to the term and select "Delete." Be cautious when deleting terms that may be linked to existing orders or records.
Types of Delivery Terms
Common delivery terms used in ProdSys include:
EXW (Ex Works): The buyer is responsible for all transportation costs once the goods are made available at the seller's premises.
CIF (Cost, Insurance, and Freight): The seller pays for the cost of goods, freight, and insurance to the destination port. Once the goods arrive, the buyer assumes responsibility.
FOB (Free On Board): The seller is responsible for loading the goods onto the shipping vessel, and the buyer takes responsibility once the goods are on board.
DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the buyer’s location, including paying duties and taxes.
Best Practices for Managing Delivery Terms
Choose the Right Term for Each Transaction: Make sure the delivery term reflects the agreement between you and the buyer, considering both shipping costs and responsibilities.
Set a Common Default Term: If your business primarily operates under a specific delivery term (e.g., EXW or CIF), setting it as the default will save time when creating new orders.
Stay Updated with Incoterms®: Incoterms® rules, managed by the International Chamber of Commerce, are updated periodically. Ensure your delivery terms reflect the latest regulations to avoid legal issues in international transactions.
Conclusion
The delivery terms functionality in ProdSys helps businesses manage shipping responsibilities and costs effectively. By setting up and managing these terms correctly, companies can ensure smooth transactions and avoid misunderstandings regarding shipping and delivery responsibilities. Make sure to regularly review your delivery terms to align with both customer needs and international standards.