Purpose - The purpose of this study is to explore how risks and costs can be reduced
when working with incoterms in purchasing within the Asia-Pacific region. To fulfil
this purpose, the following two research questions have been developed:
1. How does the case company currently work with incoterms when purchasing
within the Asia-Pacific region?
2. How can risks and costs be reduced when working with incoterms when
purchasing within the Asia-Pacific region?
Method - Theories relevant for the study's purpose were collected through a literature
study. To apply the theoretical framework to empirical data, a case study was conducted
at a company. The empirical data was gathered through interviews and document
Findings - Use of the standard Incoterms 2010 is considered to be a good tool for
reducing risks and costs when purchasing within the Asia-Pacific region, where risk
management is a necessary complement. It is required that all employees working with
incoterms have the right knowledge about the incoterms in order to use them correctly.
The knowledge can be disseminated through the organisation by using knowledge
management. It is also considered important to understand the differences between
countries, in order to reduce the risk of misunderstanding.
Contributions - The result of the study facilitates for companies who do not know how
to work correctly with incoterms. The study contributes to decreasing the gap in theory
regarding working with incoterms in the APAC region. It also facilitates for companies
who do not know how to disseminate knowledge internally.
Limitations - The case study was conducted at a company based in Thailand, which
limited the ability to communicate, due to linguistic differences.
Future research - It would be of interest to conduct an empirical study at other case
companies of different sizes within the APAC region and in other trade regions. In
addition, it would be interesting to study how internal courses about working with
incoterms can be implemented in different types of organisations.
Keywords - Incoterms 2010, APAC, Asia-Pacific, risk management, logistics costs in
purchasing, knowledge management, relationship between risks and costs.
Incoterms 2010, APAC, Asia-Pacific, risk management, logistics costs in purchasing, knowledge management, relationship between risks and costs.