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s, a typical supply chain can be considered in terms of its four key functions of buying, making, moving and selling as Figure 3 below shows under the title of ‘Traditional Functions’. Historically, these functions were managed independently and due to their potential impact may be in conflict rather than in conjunction. Managing the ‘chain’ of these functions rather than a ‘link’ or a particular function in isolation, requires means that strengthen the linkages between these key functions enable them to pull together. This proved to result in an organisation able to provide a superior level of service at lower costs. To highlight this, Figure 3 Outlines the functional objectives of the supply chain as well as their potential impact.

The EU sponsored projects of DAMAC-HP, AMCAI, BALTPORTS-IT and SPHERE concentrated their RTD activities on the link described as ‘Move’. Considering Figure 3, the natural development from addressing one key function of the supply chain to encompass all four of them, becomes evident.

Figure 3 The Conflict of Functional Objectives

The questions now arising are those of:

* How can the linkages between these four key functions of the supply chain be strengthened? and

* What means are needed to achieve this?

The direct activities of buying, making, moving and selling do not necessarily overlap as the key functions indicate. The information required to implement them, however, most certainly does. This indicates that it may be beneficial if the information flow within the supply chain is strengthened, that information is more freely shared and, that the correct information required at the various steps within the supply chain is more readily available. The combination of information and information technology is the key to answer the above questions.

The identification of the correct information required, yet restricting the amount of this information to the bare minimum begs to consider the way international business is generally conducted within the framework of legislation, regulation, available transport infrastructure and freight transport logistics service provision. In the end all of this affects the competitiveness and the economic viability of enterprises, the members of the supply chain, through generally the costs of their goods, the price their customers are asked to pay, the lead time to delivery as well as customer services offered. It also places obligations on buyer, seller and freight transport logistics service providers. The most convenient way to summarise these as proven by industrial practice are the Incoterms, (ICC, 2000), i.e. the terms of trade developed and recommended for use by the International Chamber of Commerce inParis. The reason for this is simple. Incoterms and their application are unambiguous, internationally understood and have been interpreted by the courts. Figure 4 below outlines and represents Incoterms in conjunction with the concept of the supply chain but, putting emphasis on the freight transport logistics services and allied documentation including packaging, Insurance, export and import clearance.

Figure 4: Incoterms and the Supply Chain

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