Implications for Control of Distribution Costs & Supply Chain Efficiency as Australia Moves to FOB - 'Free on Board' Trading Terms
The continuing drive by Australian industry to reduce costs and enhance service capability is forcing a change to the existing paradigms employed by users and providers of freight services. Companies attempting to remain competitive in the global economy are no longer willing to tolerate the inefficiencies present in many components of Australian supply chains.
One of the initiatives by the major retailers is a move towards managing inbound freight instead of having the supplier organise and pay. This paper looks at the implications of the trend towards FOB trading terms on the key stakeholders of the supply chain - the buyers of products, the sellers of products, and the logistics providers who move the products.
