Enhancing Supply Chain Security: Role of Contracts of Sale and Carriage

In this report we will discuss about supply chain management and below are the summaries point:- Contracts of sale and carriage play a crucial role in securing supply chain factors for buyers, ensuring critical commercial terms and protection against disruptions. These contracts also assist regulatory border agencies, like CBP, in monitoring legal and secure transportation of goods or services. The contracts help maintain smooth transportation plan operations while ensuring security and compliance with regulations.

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Supply Chain Management
Name of the Student
Name of the University
Author Note

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Explain how contracts of sale and contracts of carriage assist in supply chain security for a
buyer and for the regulatory border agencies?
In the supply chain, the contract of sale is the legal contract which is used for the
purchase of assets by a buyer from a seller for a value in money. Through this legal contract, the
seller transfers the property and there can be the contracts of sale between the one-part owner
and the other part owner (Christopher, 2016). On the other hand, the contract of carriage is
another type of contract that occurs between the consignor and the consignee. The contracts of
carriage usually define the rights, liabilities of the entities involved in the contract. For the
buyer, the contracts of sale and carriages help to secure the factors in the supply chain
(Fredendall & Hill,2016). The critical commercial terms, the quantity, the time duration of
reaching, the warranties and the disclaimer are secured along with the limitation of remedies and
damages. The buyer party can easily claim showing the statements of the contract if any
disruption takes place. These contracts in the supply chain also helps the regulatory border
agencies such as the CBP (Customs and Border protection) to monitor the legal and fare
transportation of goods or services. They can receive the correct cargo information for the
purpose of security. The SAFE Port Act requires all the importers to present 10 elements of data
to the CBP (Monczka et al., 2015). Hence, these contracts are necessary for the smooth
completion of transportation maintaining the security.

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Reference
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.