Incoterms® and the improvement of related processes and technologies (I²PaT)
Processes and technologies relating to Incoterms® offer a wide range of savings and benefits for your business along the value and logistics chains. Without an integrated approach, however, you may overlook business opportunities and financial gains or increase your compliance risks. This variety of benefits, which can be achieved by an integrated approach, constitutes the Incoterms® Hidden Potential of Efficiency.
The Hidden Champions of Efficiency
These champions have considerable impact on a great number of areas, from legal and contracting, master data, purchasing and sales, operations, strategy, and logistics, to global trade, finance, controlling, tax, and accounting. They impact your value chain as well as your activities with logistics partners.
In particular, the value chain reflects all areas where Incoterms® processes and technologies can leverage hidden potential.
Webcast: Discover their vast impact on value and supply chain
Get an impression from our webcast: "One of the major hidden potential effects is indicated by the red arrow to the right. First of all, let us start at the top left corner. Initially, Incoterms® are agreed upon in purchasing and sales contracts – being part of the value chain. This agreement defines how the supply chain should look like, thus determines the logistics planning. During logistics execution, the supply chain events trigger financial aspects back in the value chain. Those are including, tax determination, revenue recognition, invoicing, controlling up to the process of auditing. Overall, it is important to mention that Incoterms® are not only a supply chain topic!"
Read our Point of View
For more detailed information about the hidden potential in your value and logistics chains, download our Point of View. Chapter 3 in particular describes the impact that Incoterms® have on areas ranging from legal and contracting, master data, purchasing and sales, operations, strategy, and logistics, to global trade, finance, controlling, tax, and accounting.
Utilize any hidden potential at the same time as moving over to the new Incoterms® 2020 ruleset. Use your momentum and go for a Health Check Screening or review your software functionalities (see Service Offerings below for further details).
Chapter 6 demonstrates the innovative approach of our Incoterms® graphic design. For example, sea-only terms are separated from sea-intermodal terms. Moreover, the importance of Named Places is underlined so that the challenges in terms of software interacting with Incoterms® Logic are clear.
Whitepaper: The hidden champions of efficiency
Link to website
The Hidden Champions of Efficiency – a Finance Topic
Why do Incoterms® matter to CFOs?
Looking into the vast End-to-End savings and benefits, Incoterms® are obviously relevant to CFOs. These savings and benefits affect the business’ P&L and working capital and deliver improvements in the areas of tax, customs, export controls, and accounting compliance, as well as avoiding penalties and sanctions under criminal law.
Read our latest Incoterms CFO Newsletter
Our I²PaT Service Offerings
Would you like to see examples of the hidden potential of Incoterms® along your value and logistics chains? Our Incoterms® Lab format focuses on the Incoterms® Life Cycle. Many enlightening insights will spark your interest in the potential of Incoterms® to be a connecting element between your processes while improving transparency across different functions.
I²PaT Health Check Screening
Over the course of 6-8 weeks, we will screen your current Incoterms® Life Cycle. Based on your individual company type, we can highlight the hidden potential in your value chain and the connected logistics chain partners. We will go on to train your teams to raise E2E awareness, so that your organization also succeeds in future by leveraging those benefits and savings.
Fixes for SAP Incoterms® using Deloitte's I²PaT solutions
Do you use Incoterms® efficiently in your SAP system? We will check your SAP configuration and evaluate your master data quality. With our knowledge of certain weaknesses in standard SAP, Deloitte has developed fixes that can be rolled out in your environment to achieve an improved and more compliant usage of Incoterms®.
Weiterführende Links und Services:
Deloitte CFO Insights Future of Controlling - Meet our Consulting Experts
Working Capital Optimierung 4.0 - Meet our Financial Advisory Experts
IoT Track & Trace - Meet our Consulting Experts in the area of Strategy and Transformation
Supply Chain - Meet our Consulting Supply Chain Network Experts
Außenhandel & Zölle - Meet our Global Trade Advisory Experts
Audit & Assurance Studies & Services - Meet our Audit & Assurance Experts
Consulting SAS Studies & Services - Meet our Consulting SAP Experts
Transportation Management System - Survey - Meet our Consulting TMS Experts
Incoterms® and the Incoterms® 2020 logo are trademarks of ICC. Use of these trademarks does not imply association with, approval of or sponsorship by ICC unless specifically stated above. The Incoterms® Rules are protected by copyright owned by ICC. Further information on the Incoterm® Rules may be obtained from the ICC website iccwbo.org.