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A Toolkit for Responsible Businesses
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Generic Import Supply Chain- Retail Model

Generic Import Supply Chain- Retail ModelLarger view of Generic Import Supply Chain- Retail Model

 

This graphic illustrates the steps in a generic import supply chain.  This depiction of a typical retail model supply chain begins with Step One, Product Development.  In this phase, a product concept and supplier are determined, and a product design is finalized.  This is also when financing is determined and occurs 5 to 9 months prior to the in-store date.  Step Two is Order and Production.  Here, item set-up and classification occurs, and a buyer sends an electronic purchase order to a vendor, customs broker, freight forwarder and bank.  Factory selection and pre-production testing is next, followed by merchandise production by the factory which checks for quality assurance and social compliance.  This all occurs 2 to 5 months prior to the in-store date.  Step Three is Carrier Booking.  Here, the vendor books cargo with a freight forwarder and delivers cargo to a terminal or Container Freight Station (CFS) location.  This happens 2 to 4 months prior to the in-store date.  Step Four is Document Processing and Shipment.  The vendor submits entry docs to the freight forwarder and pays local charges.  The freight forwarder also sends docs electronically to the broker.  A Forwarders Cargo Receipt (FCR) is issued to the vendor (which is required for the vendor to receive payment).  The 24 hour manifest and Importer Security Filing (ISF) information are due to U.S. Customs at this stage, as well.  The vessel departs, and then the freight forwarder sends electronic shipping details to the customs broker and the buyer.  This step occurs 1 to 2 months prior to the in-store date.  Step Five is Customs Clearance.  Here, the broker receives electronic entry docs, and the broker reviews and verifies documents.  The broker then files entry with U.S. Customs and Other Government Agencies (OGAs).  The buyer sends allocation instructions to Decon at this stage, as well.  Then, the vessel arrives and the container is released for distribution.   This all occurs 1 month prior to the in-store date.  The sixth and final step is Deconsolidation/Shipment to Final Destination.  This occurs 2 weeks through the in-store date.  Here, delivery is arranged to the deconsolidation center (or final destination).  Decon then distributes the product using buyer allocation instructions.  The product is delivered to the distribution center, warehouse or store.  An Additional Information and Terms section of the graphic defines acronyms used in the illustration and also mentions that not all importers classify items early in the supply chain.

Source:  Target Corporation.

 

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