Beginning in March 2026, the university will enhance its financial system to support 11 internationally recognized shipping terms – INCOTERMS® 2020 – for international purchasing. This update addresses a critical limitation: MPathways currently supports only domestic freight terms, which are not appropriate for global transactions.
Why This Change Is Necessary
Without standardized INCOTERMS, international suppliers often interpret shipping responsibilities differently. This creates confusion around:
- Freight and transportation costs
- Customs clearance responsibilities
- Insurance coverage
- Terminal charges
- Duties and taxes
- Delivery expectations
Using domestic freight terms for international purchases can lead to shipment errors, negotiation delays, additional freight or tariff costs, compliance conflicts, and even rejected purchase orders. In some cases, incorrect terms can prevent an international purchase from moving forward altogether.
The inability to select appropriate international freight terms also creates misalignment between purchase agreements, contracts, and international regulations—introducing unnecessary institutional risk.
What Is Changing
The financial system will be updated to incorporate the following INCOTERMS:
EXW, FCA, FAS, CFR, CIF, CPT, CIP, DAP, DPU, DDP, and FOB
This enhancement includes:
- Configuration of new international freight terms within the system
- All international shipping terms will be preceded with an “I-” (I- DAP, I- DDP, etc.)
- Collaboration with procurement and business office teams for testing
- Updated documentation and training resources
Key Benefits
For Business Offices & Procurement Buyers
- Clear, standardized freight term selection
- Reduced confusion and manual workarounds
- Fewer order revisions and processing delays
- Reduced compliance risk
- Improved negotiation efficiency
For Campus Customers
- Streamlined requisition creation
- Fewer back-and-forth emails
- Reduced shipment errors
- More predictable international purchasing experience
For the Institution
- Supports the university’s global engagement strategy
- Strengthens global vendor relationships
- Improves operational efficiency
- Reduces financial risk
- Lowers unnecessary freight, customs, and insurance charges
- Advances modernization and standardization of administrative systems
Return on Investment
By reducing delays, minimizing order corrections, and preventing costly freight errors, this enhancement delivers both direct and indirect cost savings. Improved clarity around shipping responsibilities also decreases administrative labor time and strengthens compliance across international transactions.
Training & Reference Materials
- Procurement Services Shipping Guide for Departments and Units
- Procurement Office Hours – Thursday, March 19