The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you. The Incoterms® rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.

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Master of Science in Supply Chain and Purchasing Management
(Audencia Business School)
Arvin Takshan GURUSAMY RJAKANNU
Mahesh Babu RAJARAM

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Table of Contents
Abstract............................................................................................................................. 3
1. Introduction ..................................................................................................................... 4
2. Objectives......................................................................................................................... 8
3. Methodology.................................................................................................................... 9
4. Literature Review........................................................................................................... 10
4.1. ICC and Incoterms ................................................................................................. 11
4.2. Purchasing Management - Contract ..................................................................... 12
4.3. Incoterms influences in Logistics........................................................................... 14
4.4. Incoterms on Transport - Shipping........................................................................ 15
4.5. Packaging............................................................................................................... 16
4.6. Customer Service in Logistics................................................................................ 17
4.7. Penetration of technology in Incoterms ............................................................... 18
5. Bibliography..............................................................................................................................18

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Abstract
Abstract
In the business organization, the supply chain and purchase play an important role since from the
purchase of raw material or parts or products and converting them into finished products. To deliver the
consumer with an effective package at the right time with the right quality logistics plays a significant
role where the cost risk and responsibilities are high and can be optimized. As consumers expecting the
global products now global trading and global sourcing are increasing considerably. Moreover, Business
organizations expand their business strategy of comparative advantage by right-shoring were choosing
the “Best cost countries” for trading. Here we understand that all the business is considered to deliver
quality products with less cost to the consumer. To achieve this, we need to have legal and ethical trade
between buyers and sellers all over the world. Thus, in global trade, we have a common problem that
each country has its norms for their entries and the responsibility to taken care .To solve this, Incoterms
plays as a strategic plan and to execute it, logistics plays a key role in global trade where it shows the
clear picture of whose responsibility and cost to be taken in the trade which has been negotiated and
referenced in the purchase contract.
The paper aims at determining the performance in logistics by the influence of Incoterms 2010.
Additionally, it discusses the distribution of Incoterms costs, risks and responsibilities. The terms of
Incoterms 2010 and the ranges of responsibilities are distinguished. The effect of Incoterms 2020 on the
logistics performance is assumed to be insignificant when compared to the Incoterms 2010.
The paper is driven through the need and origin of Incoterms by enhancing the rules of the Incoterms
2010. The method of research followed in this study is a mixed approach of qualitative and quantitative.
The Key Performance Indicator is determined by both the research and the empirical findings of the
case study. The effectiveness of the proposed research is demonstrated via a real-life problem. The
research will continue measuring the performance of logistics.
Keywords: Incoterms; Supply Chain; logistics; Transportation Mode selection Transportation Costs
Inventory Management