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Incoterms is shorthand for International Commercial Terms and is a registered trademark of the International Chamber of Commerce [ICC]. Incoterms is a series of pre-defined rules relating to particular terms used in international commercial transactions to ensure that both parties understand their rights and obligations. The primary intention of Incoterms is to clarify ‘who does what’ and ‘what each pays for’ in terms of the transportation, insurance and delivery of goods, especially across international boundaries or where the parties do not have a trading history. The terms were updated in 2011 and the number of terms was reduced, but there are still ‘E’ terms, ‘C’ terms, ‘F’ terms and ‘D’ terms.
Goods which are purchased to support the operation and which are not converted into finished products or resold. Many manufacturing organisations separate direct materials, which are raw materials from ‘indirects’ such as cleaning, MRO supplies, travel, catering, printing, stationery etc. which are needed to support the operation. Many indirect acquisitions are low value and low risk and so lend themselves to simple acquisition systems and e-Commerce, such as online ordering through catalogues
