Understanding your procurement terms and their potential impact!

September 21st, 2022

What does Bill and Hold mean?

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc

What does Bill and Hold mean?

As part of our SafeSourcing educational offerings discussed last week in a post title What Educational offerings does your eProcurement provider offer, I failed to discuss our SafeSourcing Wiki. Our Wiki is focused on procurement so almost any term you may need knowledge of in your day to day working life might be found there. Understanding the terms in your sourcing documents, specifications, term and conditions and contracts can have a profound effect on the results of audits and other reviews required by governments, suppliers, and management.

According to our SafeSourcing Wiki, bill and hold is a sale arrangement made by the seller and the customer prior to the delivery and is held by the seller. In the bill and hold process, a seller of the goods bills the customer for the products but does not ship until the customer needs the product. In or[1]der for a transfer of ownership to occur, certain pro[1]visions must be met. These provisions would include payment for the goods, the goods be segregated from all other similar goods by the seller, and the goods be finished and ready for use.

SafeSourcing also endeavors to do something less tangible but more profound than just sourcing, the imparting of retail e- procurement and supply chain knowledge, positive judgment and well-developed retail wisdom that supports a safer and more eco-friendly global supply chain while driving increased efficiency and improved profitability for our customers and their stakeholders. For more information, please https://www.safesourcing.com/Contact-Us

 

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