by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Cost Reduction, Procurement, Vendor Management
⚡ TL;DRCOD means Cash on Delivery: payment is collected when the goods are delivered. It is not the same as cash against documents, cash in advance or an ordinary invoice term. Procurement should define who may collect, what counts as delivery, how payment is...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Procurement, Supply Chain, Vendor Management
⚡ TL;DRThe SSDER glossary gives CLEARANCE two procurement-relevant meanings: customs clearance and loading a vehicle so it can pass physical limits such as bridges or tunnels. Treat them as separate gates. A shipment can be customs-ready but physically unable to pass,...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Procurement, Sourcing, Vendor Management
⚡ TL;DRBILATERAL means mutual or reciprocal in the SSDER glossary. A bilateral procurement agreement should make both parties’ deliverables, information, payment, service, notice, change, remedy and exit duties visible. It is not enough to state that the...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Cost Reduction, Procurement, Vendor Management
⚡ TL;DRA BILL OF EXCHANGE is a payment instrument or draft that can sit alongside a purchase contract, documentary collection or letter of credit. Procurement should control who draws, accepts, endorses, presents and pays it; what shipment or invoice it references;...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Procurement, Supply Chain, Vendor Management
⚡ TL;DRAn ADVISING BANK communicates a letter of credit from the issuing bank to the beneficiary and may authenticate the message, but it does not automatically assume the issuing bank’s payment obligation. Procurement must align the LC with the purchase order,...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Cost Reduction, Procurement, Supply Chain
⚡ TL;DRSSDER lists AAR as Against All Risks in insurance language, while A.A.R. elsewhere means the Association of American Railroads. Against All Risks is not literally cover for every loss. Procurement must define insured interest, perils, exclusions, deductibles,...
