By now we’ve all experienced the effects of supply chain disruption that began with the pandemic in late 2019/early 2020. Between worker shortages, inventory shortages, high costs, long wait times and unpredictability, the challenges, for those doing business across borders especially, have been incredibly difficult to manage.
As part of Startup Global (Startup Canada’s annual program empowering founders to start their business with a global mindset) FITT teamed up with them for this fascinating and informative Twitter chat on how to build a resilient supply chain – no easy task.
We brought 6 CITPs on board to share their knowledge and experience, and the insights were too great to limit to Twitter. So for those that missed it live, here are the conversation highlights.
CITP Panel:
- Greg Gerritson, CITP, Global Logistics and Trade Compliance Manager at Phoenix Technology Services
- Rahim Mohtaram, CITP, Supply Chain Management Program Coordinator at triOS College
- Audrey Ross, CITP, Trade Compliance Specialist at Orchard Custom Beauty
- Clarecia Christie, CITP, Professor International Business, Marketing and Management Studies at Algonquin College
- Igor Chigrin, CITP, Senior Business Advisor, International Expansion at
BDC - Veronica Abella, CITP|FIBP, Bachelor’s Degree in International Business
In your own business or as a customer of a business, what was your biggest supply chain challenge?
The biggest supply chain challenges nowadays are various risks (political, currency exchange rates, shutdowns, delays), cost pressure (raw material and energy costs, logistics freight,), and digital transformation requirements. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
A1 – adjusting to
1) the new timing, ex. no more last minute bookings, have to book ocean 5 weeks in advance. Ports taking waaaayyyy longer to offload.
2) the amount of chasing! Nothing is on track, every project constantly monitored. #StartUpChats pic.twitter.com/WPxHAFrIx4— audrey ross citp|fibp (@tresAudrey) May 25, 2022
#StartupChats #CITP pic.twitter.com/Q4nOuSgmXr
— FITT (@FITTNews) May 25, 2022
When it comes to international business and your supply chain, how can you protect yourself?
A2 – Understanding true “landed costs” and associated supply chain intricacies within your business. #startupchats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
A2 From B2B perspective there are a number of risk mgmt tools to tap into such as export credit insurance, maritime insurance, inventory loss insurance, etc. @FITTNews #StartupChats
— Clarecia Christe CITP ?? (@ClareciaChriste) May 25, 2022
Ensure your contracts & documents are accurate, precise and compliant.
Now is the time to get super detail-oriented bc you cannot afford the extra charges for storage or delays.
Control what you can control – the precision of your paperwork. #StartupChats— audrey ross citp|fibp (@tresAudrey) May 25, 2022
Selecting reliable suppliers, early involvement of professional 3PL service providers, cargo insurance (Clause A plus war & SRCC), hedging, redesigning supply chain network, nearshoring or reshoring mixed with offshoring. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
Let’s talk about Incoterms. What are they and how do they help entrepreneurs mitigate risk?
They regulate where the costs and risks transfer between the buyer and the seller in the international shipping transactions. So, you need to know incoterms to know when you start being responsible for the loss or damage of the goods in transit. #StartupChats
— Igor Chigrin (@winglobal_igor) May 25, 2022
The @iccwbo #Incoterms® rules are used in contracts to clearly communicate the obligations, costs, and risks associated with the transportation and delivery of goods, providing clarity for sellers and buyers and helps facilitate trade.
Learn more: https://t.co/Rs0PAq4F2n— FITT (@FITTNews) May 25, 2022
Understanding INCOterms is crucial in import / export biz. Obvi, you want to choose the one w/ most advantage to you… but then you have customers & DDP is a real value add. You just have to ensure (& insure!) you plan for the costs & risks involved. #StartupChats
— audrey ross citp|fibp (@tresAudrey) May 25, 2022
What problems are small businesses currently facing when taking their business internationally and exporting to new markets?
Recruiting experienced traders, finding a practical method for selecting the right target markets, finding a suitable and reliable agent, distributor, or partner in the target market, negotiating and drafting a comprehensive contract, and logistics coordination. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
Finding and marketing to the right buyers or customer segments is also a problem, on top of all others. #StartupChats
— Igor Chigrin (@winglobal_igor) May 25, 2022
High costs! Freight rates being just one example.#StartupChats #SupplyChain #SME #CITP pic.twitter.com/jrxHreNlsJ
— FITT (@FITTNews) May 25, 2022
A4 Understanding industry regulations of international markets which affects their goods accessing the market, using incorrect HS Codes, assuming an homogenous culture, not using a customs broker. @FITTNews #StartupChats pic.twitter.com/1CxbSojCJP
— Clarecia Christe CITP ?? (@ClareciaChriste) May 25, 2022
A4. Generally what I see is an assumption that conditions, market and regulations will be similar to the home country. Not doing your homework. Also- – not bringing on paid advice (legal, financial, trade compliance) early enough. #StartupChats
— audrey ross citp|fibp (@tresAudrey) May 25, 2022
A4- Marketing plan (online?), Financing (distribution, landed costs) and reverse logistics (returns/damages, customer service). #startupchats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
The pandemic has clearly shown the interconnectedness of our global supply chains. How do you navigate difficult conversations between all your different stakeholders?
Having a long-term view, creating cross-functional teams, early involvement of customers and suppliers in projects, honest and open negotiation and creative problem-solving technics, and strategic cooperation with preferred partners. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
A5. Have them early and come with solutions.
It is a reality that you will not always have awesome convos with your customers. Be responsible, honest and get it over with so you can move forward together. #StartupChats— audrey ross citp|fibp (@tresAudrey) May 25, 2022
A5 – Being aware of cultural and business process differences in different regions and educating yourself so to have productive dialogue to overcome challenges, and help achieve goals. #startupchats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
A big part of being resilient is having a support system and strategies to overcome hard times. For supply chain issues, what might this look like for entrepreneurs?
A6 As we are in the #digitalage Entrepreneurs have new tools to use tracking shipments and communicating with 3PL partners; her the use of AI, Blockchains is playing a big part in managing some supply chain issues @FITTNews #StartupChats
— Clarecia Christe CITP ?? (@ClareciaChriste) May 25, 2022
A6. It’s connections and knowing who is in the community. @Startup_Canada @FITTNews @wekh_pcfe @ExportDevCanada @TCS_SDC , Chambers of Commerce, @OWITintl etc. #StartupChats
— audrey ross citp|fibp (@tresAudrey) May 25, 2022
A6 – Relationships with trusted experts and resources who understand your vision and business. #StartupChats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
Knowing the impact supply chain issues have had in the past few years, will you structure your team differently in the future? Who can help entrepreneurs tackle these challenges?
A7. If you haven’t already adopted some digital tools and moved away from excel spreadsheets – the time is now.
Also- you can’t copy & paste someone else’s supply chain design. We all tried copying toyota JIT model… #StartupChats— audrey ross citp|fibp (@tresAudrey) May 25, 2022
Yes, We need cross-functional and cross organizational teams including all links in our supply chain, from third-tier suppliers to end-users. @FITTNews, @StartupsCanada, and @ExportDevCanada can help with their professional advice. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
A7 first the entrepreneur must know the trade ecosystem and the players, budget for paid professional advisors such as CITPs @FITTNews in the business and hire great custom brokers, freight forwarders, etc. #startupChats
— Clarecia Christe CITP ?? (@ClareciaChriste) May 25, 2022
I’d say that a good freight forwarder can make a difference. They are not all equal. #StartupChats
— Igor Chigrin (@winglobal_igor) May 25, 2022
A7 – Talented CITP certified staff! #StartupChats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
What are some strategies you can adopt to make sure your customers remain happy even if there is a delay with shipments and product delivery?
Being proactive, considering pessimistic transit times, managing expectations when signing contracts, being realistic and honoring promises, clear and fast communication and explanation, increased visibility by online tools, hard work, and honesty. #StartupChats
— Rahim Mohtaram (@RahimMohtaram) May 25, 2022
A8 Bring customers in the supply chain journey with you with tracking technology, be transparent and realistic on arrival times, provide complementary services e.g. inventory management software, future discounts, etc. #StartupChats @FITTNews
— Clarecia Christe CITP ?? (@ClareciaChriste) May 25, 2022
A8. Over-communicate, provide them expectations in advance and sometimes you have to throw in a “we’ll cover the expedited delivery cost for this one!”
— audrey ross citp|fibp (@tresAudrey) May 25, 2022
A8 – Real time tracking and tracing, and visibility of your goods in transit. Regardless of mode, air (courier or heavy freight), land or Ocean. #StartupChats
— Greg Gerritsen (@greg_gerritsen) May 25, 2022
Yep! There will be a quiz later! https://t.co/AOYkY90git#Incoterms2020 pic.twitter.com/kVfQHsjQHn
— FITT (@FITTNews) May 25, 2022
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