Slide 1

1. The Sale Phase

Source Products – Catalogs, Internet, trade shows, contacts.

Basic Ordering Agreement – Contacts, addresses, terms and conditions.

Request for Quotation – Request for prices, delivery, specifications …

Quotation – Specific as to price, quantity, delivery, Incoterm …

Purchase Order – Contractual agreement for price, quantity and terms.

Purchase Order Acknowledgement – Acceptance of the Purchase Order

Global Trade Business Model

TABLE CONTENTS

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	The Sale Phase is consists of five basic steps:
	The first step is for the buyer to find a source for the product or services he needs with catalogs, Internet, trade shows, and business contacts.
	After a source is identified, the buyer and seller decide on the terms and conditions by which they intend to do business. The agreed upon terms and conditions are put into a Basic Ordering Agreement, which includes, for example the names and addresses of the buyer and seller, shipping points, Incoterm, banks to be used and method of payment.
	The buyer then provides the seller a Request for Quotation for specific quantities based on the terms and conditions agreed upon in the Basic Ordering Agreement.
	The seller returns a Quotation based on the Request of Quotation, which is specific as to quantity and Incoterm.
	If the buyer then places a Purchase Order for the quantity and prices quoted. The Purchase Order, or PO, becomes the contractual agreement for price, quantity and terms.
	The Sale Phase is concluded with the seller accepting the PO with a Purchase Order Acknowledgement to the buyer.