Editor's Note: Take a look at our featured best practice, Supply Chain Performance & Metrics (25-page PDF document). Supply Chain Performance & Metrics document gives an overview of key performance metrics used to measure the operating effectiveness of a supply chain. The metrics are categorized for each stage of the supply chain with definition provided at the back of the document. The objective of this [read more]
CMR Documentation – Purpose and Legal Characteristics
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The 1956 CMR convention governs international cargo transport across European borders with specific characteristics and purposes. Since then, a digital eCMR that follows the same fundamental principles as a standard paper-based CMR document has been gaining popularity.
If you play a role in the shipping industry, you need to understand the legal nuances and functional aspects of CMR documentation.
Purpose of CMR Documentation
A CMR document’s objective is to work as a contract between the consignor, consignee, and the carrier that declares and validates the carriage of goods by road across international borders. This document will be applicable if at least one country of the concerned parties has ratified the protocols of the CMR convention.
The CMR documentation seeks to fulfill the following purposes as part of its responsibility.
Identification of Goods in the Cargo
The consignment note discloses the quantity and nature of the merchandise in the freight. It also includes the weight and dimensions of the goods.
Evidentiary Functionality
The CMR note functions as legal proof that the freight is in good condition and that the quantity is according to specifications. The documentation also works as a delivery verification for the consignor and consignee.
Receipt of Goods
The entire document acts as a receipt of the transit process of the cargo by road.
Point of Reference
Furthermore, CMR documentation can function as a primary point of reference when a dispute occurs. The protocols of the 1956 CMR convention impose liability on the carrier in case any loss or damage of the goods occurs while in portage.
Legal Characteristics of the CMR Documentation
What are the characteristics of this internationally-binding protocol?
Non-Negotiable
The CMR convention differs from the Turkish Commercial Code as it does not specify the consignment note as a negotiable instrument or a document of title.
Reservation of Rights
The consignee’s and the consignor’s rights are distinct but are not limited to the consignment note. According to Article 12, the possession of goods is transferable without concerning the CMR note.
Validation
The validity of the contract of carriage does not expire if any damage occurs to the goods. It also applies to the absence or loss of goods according to Article 4 of the CMR convention.
Conclusion
As the CMR note doesn’t mean the transfer of the title of goods, the consignor can withdraw delivery of the goods. The consignee reserves the right not to ask for the delivery of the goods bearing the consignment note as a reference.
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The purpose of the 4 Stage Model is to provide a high-level qualitative assessment of an organizations practices and processes. The model aligns with the Supply Chain Council's SCOR model and is broken down into Plan, Source, Make and Deliver. Within each of these major processes are a series of [read more]
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Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services.
In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade.
COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.
Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.
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About Shane Avron
Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.
