Logistics & Trade Finance in ZXY International: Payment Terms in Bangladesh RMG

Abstract

ZXY is one of the leading European based garments sourcing company operating business in Bangladesh since 2000. We are working for around 100 customer all over the world and we are sourcing product from almost 200 Bangladeshi manufacturers. To handle such big logistics operation, we have total three team. Our main goal to make the goods available at customer warehouse within agreed schedule. We are involving every stage of operation. At the time of order placement, we are providing shipping cost and transit time for import raw material as well as final product reached at customer warehouse. After order placement we start importing raw material and make sure to in house raw material within planned schedule. For exporting final product, we place booking to customer nominated forwarder and follow up with customer to approval of booking. We make sure to handover the goods to forwarder within cutoff date and loaded to the carrier as per approved schedule. We track vessel until reached at destination. In case of any delay in transit we try to solve so that our customer can get the goods on time. We are responsible to collect payment from customer following agreed terms. We are working for various customer with multiple payment terms. Out of them letter of credit, TT, open account is most uses terms. We need to prepare various documents following local rules and customer requirement to get the payment. During the total process we are facing lots of difficulties and we must overcome those problem. Sometime our manufacturer failed to make the goods ready within schedule due to production issue, raw material shortage or faulty raw material. In such cases production will be delayed but to reach the final goods available at customer warehouse within agreed schedule we are finding faster transport service like Air, Sea & Air, Sea & Road so that we can meet the customer schedule.