Prof.

Esteban Franco Scherer Logistics and Supply Chain

NATIONAL PURCHASES

• National purchases are those in which a good or service is acquired in

the country from a company or entity that is authorized to sell and
distribute goods or services within the national territory.
IMPORTANCE

• More reliable services.

• Reception of goods and services in a timely manner.
• Helps meet regional needs.
• Less time in replenishing raw materials.
• Higher quality.
• Shorter distances.
• Elimination of excess inventories.
SHOPPING
INTERNATIONAL
• Given economic globalization, there is a boom in the exchange of goods
between countries, to which purchasing departments have a
relationship. An international purchasing manager must take into
account the following issues:
INTERNATIONAL SHOPPING

• LEGAL SYSTEM . Adhere transactions to the regulations between both nations

(customs, phytosanitary, security, etc.), which includes covering import tariffs,
payment of duties and import permits, as
well as the applicable legal provisions.

• NEGOTIATION . This category covers

everything from the language in negotiating
communication to the type of currency in
which the transaction is achieved, as well
as the form of payment. Consultation of
customs agents is required to consider the
factors and scope of the import.
INTERNATIONAL SHOPPING

TERMS OF SHIPMENT . These are the forms of

transportation (air freight, sea freight, land
freight), risk insurance (including the risk of
exchange loss: devaluation) and incidental
expenses. An important factor is the waiting
time. Generally, commercial transactions
across borders tend to be for large volumes of
magnitude greater than national purchases,
which means carrying out a detailed analysis
of the risks and weighing all the advantages
and disadvantages, in order to obtain the best
decision.
PRIVATE SECTOR

• Since there are variations between

industries, companies, products and
personnel, it is not feasible to establish
a single set of procedures that can be
applied to all cases. However the
following steps must be carried out to
complete the purchase transaction:
PRIVATE SECTOR

• Recognition of the need.

• Description of the requirement.
• Selection of possible supply sources.
• Description of price and availability.
• Order placement.
• Tracking order.
• Review and reception.
• Invoice verification.
• Closing of completed orders.
• Maintenance of records and files.
PUBLIC SECTOR

• Government purchases, local and state,

follow a fairly standardized procedure.
Small and emergency purchases are
negotiated by telephone, calling one or
two local supply sources.
• Contracts for larger purchases, in
general, are made after putting them in
progress and requesting offers.
DIFFERENCE
S
• Public: They are subject to regulations
in order to protect the consumer and to
prevent personal favoritism on the part
of public officials, and to ensure that
all qualified suppliers have equal
opportunity to make and crystallize
offers, tenders are generally called. ,
offers must be opened publicly.
DIFFERENCE
S
Stages or procedures of public procurement:
• 1. That there is a budget for this purpose.
• 2. That the bases or conditions of the
purchase are established
• 3. That said bases be published in a call in
the Official Gazette of the Federation and
in one of the newspapers with the greatest
circulation.
• 4. That sellers present their offers in a
sealed envelope, at a time and day location
previously established in the terms and
conditions of the call, indicating its validity.
DIFFERENCE
S
• 5. That the offers are known in the
presence of the other sellers.
• 6. That the award be made to the bidder
who has offered the best conditions of
price, quality, quantity, timeliness,
delivery and payment conditions, as well as
after-sales services.
• 7. Formalization through a purchase order
 (sale and purchase contract) at the time
the buyer and seller sign.
• 8. The other pertinent circumstances, in
order to assure the State the best
conditions available in terms of price,
quality, financing and opportunity.
DIFFERENCE
S
• Private : They can be negotiated secretly,
purchased without competition and the
information is not disclosed.
PROCEDURES

• We have already talked about purchases,

we saw management and good practices.
Let's now turn to international
purchases, specifically.
• Once the most convenient supplier has
been determined and the respective quote
has been obtained, setting the terms of
the operation in terms of delivery times,
payment method, means of transportation,
etc., the order will be placed.
PROCEDURES
• The order must contain with complete
precision: Quantities, qualities, prices, form
of packaging, consignee of the merchandise,
means of transport, customs office of entry
(consequently destination point, whether
border, sea or air) as well as all shipping
instructions. pertinent shipment related to
documentation, legalization and correct
name of the merchandise and other
information that the invoice must contain.
REQUIREME
NTS
• Consultation of the IGI rate (General Import Tax and General Provisions.
• Import license. (Import Control).
• Final import formalities and procedures.
• Reception of documents, endorsed commercial invoice (sea, land), bill of
lading (sea), shipping slip (land), certificates, declarations and shipping list
REQUIREME
NTS
• Thorough review of what was ordered versus what was shipped,
quantity, description, weight, price, etc.
• Preparation of documentation, declarations and endorsements, sending to the customs
agent, and instructions, tariff item, method of transportation, and consignee.
• Customs procedures, customs clearance, integration and presentation of the request and
annexes, confrontation, designation of view, recognition, payment and delivery to the
warehouse.
REQUIREME
NTS
• National traffic, reshipment, tracking, receipt.
• The importation begins when the ship carrying the goods enters national
waters or when the goods cross the international dividing line and concludes when the
tax processing has been completed and the goods are at the free disposal of the interested
parties.
ROLE OF GOVERNMENT AND
REGULATIONS
• The Government through different laws
and decrees regulates imports and exports,
mentioned below:
• Political Constitution of the United Mexican
States.
• Fiscal Code.
• Foreign Trade Law.
• Customs legislation.
• General Import Tax Law.
• General Export Tax Law.
• Promotion and Protection Law (Art. 140
franchises)
• Foreign Investment Law
• Free Trade Agreement Law.
 NATIONAL AND
INTERNATIONAL
PURCHASES
Prof. Esteban Franco Scherer
Logistics and Supply Chain