Insight | Mercado Labs Knowledge Base
Why Mercado's Commercial Invoice is like ordering at McDonald's
When you order a product from McDonald's they enter your order into their computer.
The order is sent electronically to the people who make the product. When the product is complete, the computer validates the product is correct, and generates a document (receipt) to validate the selling price. Matching what was ordered, to what was made, to what was delivered.
Importers also require a receipt. However in importing it is not called a receipt, it is called a Commercial Invoice. The commercial invoice is used by the importers accounting department to pay the supplier. It is also used by US customs to confirm that they are being paid the correct taxes.
The problem for importers is that unlike McDonalds, the order is not tied to the people who make the product. A second problem is that unlike McDonalds, customers often change their mind after they have placed the order.
The result is that each supplier creates their own invoice, 3 months after the order was received, and after many changes have occurred. When complete it's sent via a pouch or attachment to the Customs Broker and the Accounting department. All of this manual work leads to a lot of mistakes.
Importers also require a receipt. However in importing it is not called a receipt, it is called a Commercial Invoice. The commercial invoice is used by the importers accounting department to pay the supplier. It is also used by US customs to confirm that they are being paid the correct taxes.
The problem for importers is that unlike McDonalds, the order is not tied to the people who make the product. A second problem is that unlike McDonalds, customers often change their mind after they have placed the order.
The result is that each supplier creates their own invoice, 3 months after the order was received, and after many changes have occurred. When complete it's sent via a pouch or attachment to the Customs Broker and the Accounting department. All of this manual work leads to a lot of mistakes.
With Mercado, we connect the order to the people who make the products, just like McDonalds. We also allow them to update the order electronically if there are changes. This means we can create the receipt electronically and send it to the accounting department and the customs broker.
So just like McDonalds we create an invoice that is:
So just like McDonalds we create an invoice that is:
- Validated
- Standardized
- Electronic
About Mercado
Mercado was designed to change the way the world trades, transacts, and interacts. The purpose-built import order management system connects brands to the people who make and move their products. Driving greater transparency, increased efficiency, and improved time to market.
Get started with a free demo today to see how you can better improve your supplier relationships.
Get started with a free demo today to see how you can better improve your supplier relationships.
