As e-commerce continues to grow and supply chains become more complex and global, logistics is skyrocketing in importance. Customers want their purchases faster and cheaper, and the logistics power of behemoths like Walmart and Amazon is forcing all kinds of other businesses to step up their performance to stay competitive.

However, the 21st century logistics market presents more than its fair share of unique challenges, and the truth is that it’s often simply not realistic to address them in-house, particularly for small and medium businesses.

Outsourcing logistics to third-party logistics providers, known as 3PLs, is an increasingly popular option. What’s behind the surge in popularity for 3PLs, and why does it make sense for many businesses to use them? Here are seven reasons that outsourced logistics are taking over in road, rail, sea and air.

1. Helps leverage the benefits of experience and expertise

A 3PL will be able to provide a level of knowledge and experience that most companies won’t have access to in-house. Working with a good 3PL, a business can expect to have access to:

• Extensive knowledge of shipping laws and regulations.
• More experienced and knowledgeable drivers.
• Insider information on receiver locations and delivery windows.
• Streamlined, expert-designed systems that cut out waste and reduce cost.
• Faster and more accurate paperwork.

These benefits can substantially improve operational performance, and they’ll continuously create value throughout a shipper’s supply chain.

2. Reduces or eliminates the expenses of maintaining a vehicle fleet.

Maintaining a vehicle fleet can be incredibly expensive, particularly for businesses that need to ship using larger vehicles such as tractor-trailers. An in-house vehicle fleet usually means substantial investments in equipment, maintenance, training, fuel, taxes, inspections and safety equipment.

A 3PL has already made all of these investments as part of their core business model.

3PLs take on these considerable investments in capital and maintenance so that their customers don’t have to make them.

They can also use their expertise to stretch these resources farther through techniques such as LTL (less than truckload) shipping.

3. Allows businesses to focus on core competencies.

The logistics sector is complex and competitive, and it takes a long time to learn the ropes. Employees who have to become logistics experts in addition to their other duties can find their time consumed by delivery coordination, maintenance, billing–and the many other daily tasks of logistics management. Bringing logistics experts on board can work, but it’s unlikely to be cheap.

Using a 3PL’s services helps a business to cut out these expenditures. By using a carrier with ready-made capacity, a business can focus on its core competencies without having to worry about complex matters of logistics in which they might not have expertise.

4. Provides access to a well-developed network of resources.

Networking is everything in logistics. Operational performance depends on having access to a wide network of carriers and drivers, and creating that network requires a substantial investment of time, effort and money. Logistics partners also have to be vetted. It’s important to ensure that they have a broker license, carrier surety bonds, proper insurance and other credentials.

A 3PL has already done the hard work of cultivating resource networks across a wide area and a wide range of services. Businesses working with 3PLs get access to these well-built networks.

3PLs with a national or global reach also make it much easier to expand operations into a new area because they’ve already laid the groundwork by extending their network there.

5. Offers more scalable and customizable services.

Flexibility is invaluable for creating better logistics performance, so the ability to adapt and scale is another significant advantage of using a 3PL. In the e-commerce era, it’s common for many businesses to experience large and sudden swings in demand, and a business that relies on its own logistics capacity can be left scrambling for the ability to fulfill a key order on time.

Working with a 3PL means a business will have less trouble scaling up their services when needed, and they can also coordinate with the 3PL to ensure that they’re well-prepared for busy seasons. Specialty needs such as refrigerated shipping are also usually easier to find through a 3PL that can tap into their sophisticated resource networks.

6. Provides improved last mile solutions.

Last mile logistics has always been notoriously tough to master. It’s gotten both more complex and more important in the e-commerce era, when consumers expect packages delivered to their doors lightning-quick.

Businesses that need last mile logistics can easily find a 3PL that specializes in last mile solutions. What’s more, 3PLs often provide services that are in high demand among consumers, such as white glove delivery, and they’ll have more resources to bridge the last mile in remote areas that are tough to access.

7. Creates better options for dealing with obstacles.

Everyone who’s ever worked in logistics knows just how common it is to encounter a breakdown, a bout of inclement weather, a backed-up loading dock or any of dozens of other things that can go wrong. For a business that doesn’t have the resources of a 3PL, these challenges can cause huge disruptions in the supply chain and create destructive ripple effects.

For a 3PL, these problems are old hat.

A quality 3PL will have backup systems in place to address the many common hiccups of logistics, from dispatching roadside mechanics to rescheduling other shipments to accommodate a delay.

That kind of peace of mind is difficult to put a price on.

With the many excellent 3PLs available today, many businesses have found that it doesn’t make sense to devote time and resources to in-house logistics. A good 3PL can help a business remove the headaches of logistics so they can get back to what they do best while the 3PL leverages its technology, network and expertise. Teamwork powers the best 21st century businesses, and it’s increasingly apparent that a 3PL is an indispensable addition to many teams.

The post 7 reasons e-commerce businesses are hiring 3PLs to help them navigate complex supply chains appeared first on Trade Ready.

Many larger companies are now turning to third party logistics providers (3PLs), third party service providers (3PSP) and fourth party logistics (4PL) providers to run their reverse logistics because of the cost-efficiencies they can provide. This allows organizations to focus on their business priorities and core activities.

A 4PL company is a supply chain services provider that searches for the best supply chain management solutions for its client companies. To do this, it uses its own resources, and outsources to various 3PL companies. The Council of Supply Chain Management Professionals defines a Fourth-Party Logistics Provider as:

An integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions.

4PL providers are typically engaged as a joint venture or through a long term contract with a customer to oversee the customer’s entire supply chain. This is another alternative to off-shoring or foreign outsourcing. 4PL practices provide value by using technology and reconfiguration using other outside resources, such as 3PLs, to manage all supply chain functions as agreed upon with the customer.

4PL services are more managerial in scope, and are more focused on the integration of an organization’s functions and the use of technology in freight, warehouse management, inventory, transportation, and other supply chain needs. This allows 4PL services to provide greater efficiencies, cost-savings, leaner production, inventory management and distribution. This could also include collection and analysis of customer and end user feedback, and reverse supply chain/circular economy functions.

The growth of technology and the need to integrate the data into useful information that can used by organizations to direct its activities, the increasing complexity of the regulatory environment for international trade in both the importing and exporting countries, and the speed at which all this change needs to happen is pushing the growth in 4PL logistics as organizations focus their resources on their core activities.

What is 4PL? Main Components of 4PL

Unlike a 3PL, a 4PL does not own physical logistics assets. Rather, fourth-party logistics providers coordinate intricate networks of carriers, warehouses, suppliers, and other partners. Acting as architects, 4PLs design and manage comprehensive solutions by seamlessly integrating disparate systems and data sources into a unified technology platform. This central nervous system provides complete end-to-end visibility across the supply chain.

Leveraging cutting-edge analytics and optimization tools, 4PLs continuously monitor data and identify opportunities to improve logistics operations. Their services develop multi-channel distribution strategies to optimize transport channels based on factors like cost, speed, and reliability. By aggregating inventory volumes across clients, 4PLs can negotiate better rates with vendors. Rather than directly managing transactions, they focus on providing oversight of partners through rigorous performance management. This arms you with a holistic view to make informed, strategic decisions regarding supply chain inventory fulfillment.

In essence, 4PLs assemble the perfect ecosystem of partners tailored to your supply chain and inventory transportation needs. Your logistics provider will coordinate the orchestration of supply chain activities to help you achieve synchronized, efficient, and innovative logistics execution across your entire supply chain.

Want to learn more about managing your company’s supply chain and logistics to mitigate risks? Chech out the FITTskills Global Value Chain online course!

Benefits of Working With 4PL

Rather than grappling with multiple fragmented vendors, 4PLs offer the benefit of consolidated supply chain management through a single point of contact. Fourth-party logistics provide an adaptable, consultative approach to understand your supply chain needs and design tailored solutions. 4PLs possess both the industry expertise and technological capabilities to drive innovation. A 4PL will stay on the cutting edge of emerging logistics technologies and best practices and bring these to bear for your supply chain.

You gain access to more resources and support without needing to develop extensive in-house capabilities. The 4PL essentially serves as an extension of your team with both broad supply chain knowledge and specialized skills to elevate your logistics operations. They rapidly scale up or down as your business needs change, providing enhanced flexibility. By leveraging a 4PL, you can focus your attention on core strategic initiatives and rely on expert partners to manage your end-to-end supply chain. The result of working with a 4PL is optimized efficiency, visibility, and innovation.

Orchestrating End-to-End Supply Chain Management with 4PL Logistics Companies

An effective 4PL serves as the maestro conducting the symphony of your supply chain operations. They coordinate and oversee the activities of all partners to ensure alignment with your business goals. A 4PL will handle everything from transportation, freight delivery, and last mile logistics to inventory level, warehouse services, and order fulfillment.

Seamless Network Integration

The 4PL intricately links together your entire fulfillment ecosystem comprised of suppliers, manufacturers, 3PLs, carriers, warehouses and other supply chain players. A 4PL will design solutions that seamlessly connect disparate nodes into an integrated supply chain network. The 4PL institutes rigorous performance management across all partners.

Command Centre Oversight

From their centralized command centre, 4PLs maintain complete visibility over your supply chain activities. They monitor and control events in real-time to swiftly address exceptions and make tactical adjustments to optimize operations. The 4PL acts as the air traffic control, directing the daily activities of logistics partners to ensure efficient execution.

Proactive Transportation Optimization

With end-to-end visibility and data-driven insights, the 4PL identifies opportunities to continually improve supply chain processes and strategies. They implement advanced analytics and technologies to drive innovation. The 4PL proactively adapts logistics plans to align with your strategic objectives.

Breaking Down Information and Logistics Silos

The amount of data in supply chains and the logistics industry is exploding exponentially. But trapped in information silos, the data lacks context and actionability. 4PLs solve this by integrating disparate data sources into a unified platform.

Complete Visibility

By aggregating data across all supply chain partners, 4PLs provide complete visibility into inventory levels, orders, shipments, cost of goods, costs and other key metrics from end-to-end. You gain full transparency to make smart strategic decisions.

Streamlined Collaboration

The centralized data environment enables seamless collaboration across your supply chain ecosystem. Rapid information sharing breaks down silos and improves coordination between supply chain partners.

Analytics-Driven Insights

Leveraging the integrated data foundation, 4PLs apply advanced analytics, modeling, and AI to uncover optimization opportunities. Data-driven insights enable fact-based supply chain strategies and inventory planning.

A 4PL can help bring your logistics activities together more cohesively

It is evident with this move towards 4PL services that logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates those activities with other business functions including procurement, sales and marketing, manufacturing, finance, customer service and information technology.

The logistics activities of inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, distribution network design, inventory management, supply/demand planning, and management of third party logistics services providers is a reflection of an organization’s overall business strategy.

In consideration of all the variables, the amount and type of information available through technology, and the assessment of all the combinations and permutations of logistics available is a colossal task that will continue to evolve as international trade grows and innovates.

The post What is 4PL? 4PL providers and how they can help your business appeared first on Trade Ready.

The logistics, freight forwarding and transportation industry has some incredible conferences which help to educate, inspire, and connect people involved in the field. These conferences are a great way for industry members to network and develop key knowledge for success.

Here are some of the top conferences in North America for freight forwarders and logistics.

1. WERC National Conference

April 28-May 1, 2019 | Columbus, OH

The WERC (Warehousing Education and Resource Council) National Conference is a fantastic annual event for members of the logistics community to come and learn more about their trade. Because this conference is specific to warehousing, it is ideal for anyone in the logistics industry who is primarily involved with storage and warehousing.

A unique aspect of the WERC National Conference is its interactive simulation activities. These powerful learning tools are ideal for anyone aiming to gain practical knowledge in this area. Learning from experts in such a hands-on way can help you build on your skillset in this industry.

Finally, this conference also features facility tours and exclusive sessions with several companies. All present exciting opportunities to advance supply chain knowledge.

2. Gartner Supply Chain Executive Conference

May 13-16, 2019 | Phoenix, AZ

The Gartner Supply Chain Executive Conference is another wonderful annual event for members of the supply chain industry. Those in attendance will be treated to speeches, networking sessions, and workshops, like many of the other events.

However, this conference also has several unique components that separate it from others. For example, it features a ceremony called the “Gartner Top 25,” in which the top 25 organizations that embody supply chain excellence and innovations are honored with a special dinner. This is a great way to get to know the key movers and shakers in the field.

This event is geared toward innovation and advances in the supply chain industry. It even offers sessions with industry analysts, where you can learn the latest technology in the industry. It’s a great place to rub elbows with those at the cutting edge of the trade.

3. CTRF 53rd Annual Conference

May 26-29, 2019 | Vancouver, BC

This annual conference is a chance for freight forwarding professionals to meet and reflect on the history of the industry. It is also a chance to discuss current trends and developments in freight forwarding, and talk about the future of the industry.

This event is being held at the Pinnacle Harbourfront Hotel in Vancouver, from May 26-29, 2019. It is a great way to enjoy springtime, and learn more about the supply chain industry!

The Canadian Transport Research Forum holds this conference every year. It is known as one of the leading events for transportation professionals in Canada. There are many open forums which promote discussion and propose research ideas for freight forwarding. It is a great place to learn and network for those in the transportation industry.

4. 3PL and Supply Chain Summit

June 10-12, 2019 | Atlanta, GA

Based in Atlanta, the 2019 3PL and Supply Chain Summit is a key gathering for those in the logistics industry. Some important topics that this conference will focus on include e-commerce, high and low tech solutions, urban, suburban, and rural delivery, and keeping pace with the consumer.

The event will feature speeches and panels with CEOs and important members of the logistics business. Other new features include a special networking party, an exclusive blockchain workshop and an informative session focused on temperature-controlled logistics solutions.

The conference will be held at the Westin Peachtree Plaza, right in the heart of downtown Atlanta and within walking distance of many city landmarks. It’s always great when a conference offers the chance to do some sightseeing too!

5. Cargo Logistics Canada Expo and Conference

Exact date TBA, 2020 | Vancouver, BC

Billed as Canada’s largest supply chain event, this annual expo and conference helps connect cargo owners with cargo movers. It is the perfect event to make the right connections to advance your business or career in the supply chain industry.

This conference features targeted summit events, more than a hundred speakers and industry experts, and thousands of square feet of exhibit space. In the words of the organizers, “The entire supply chain will be under one roof!”

This is the seventh annual Cargo Logistics Canada Expo and Conference, and has taken place in Vancouver all but one year, when it was located in Montreal.

If you are in the supply chain industry in Canada and you are looking to either connect with cargo transporters, or people who have cargo that needs to be moved, this is the place to be. Just imagine the incredible business opportunities you’ll have as you meet countless professionals in the field. It is the perfect event to grow your business.

Did we miss an event that you think should be on the list? What events do you plan on attending this year?

The post Top 5 North American conferences you don’t want to miss if you are in freight forwarding and logistics appeared first on Trade Ready.

Most people are familiar with the concept of the bottom line: the last line on a financial statement indicating the profit or loss a company has produced during the accounting period.

While generating profit remains a primary goal, many organizations are embracing more sustainable business practices that move away from a “profit above all” mentality which can lead to social or environmental damage. These practices are part of a company’s Corporate Social Responsibility (CSR) policies, and may include adopting a Triple Bottom Line accounting system.

Triple Bottom Line (TBL or 3BL) is a term coined by John Elkington in 1994, and came to prominence with the release of his 1997 book, Cannibals with Forks: The Triple Bottom Line of 21st Century Business. TBL is used to evaluate business performance from a more holistic perspective, measuring a company’s performance in three areas of impact: social, environmental and financial, often referred to as People, Planet and Profit.

In a TBL system, monetary profit is adjusted to reflect the company’s impact in the social and environmental categories.

In a traditional accounting system, companies are held accountable to their shareholders based on profit or loss generated by the business. Companies that have committed to a TBL accounting system still have a primary responsibility to their shareholders, but are held accountable to all stakeholders. This includes anyone who may be directly or indirectly affected by the activities of the company, positively or negatively, whether they have a financial interest in the company or not.

TBL companies must evaluate their present and future impact in all categories while considering the social and environmental consequences of business practices and decisions.

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

The social (People) impacts

In the social category, TBL companies strive to develop business practices that benefit both the labour force and community stakeholders.

This could include:

• Offering fair compensation to employees, e.g. competitive, equal pay for equal work
• Avoiding exploitation of labour throughout the supply chain, e.g. child labour, sweat shops
• Providing a safe work environment
• Encouraging a work/life balance for employees, e.g. generous leave policies, health benefits package
• Investing in employees’ health, e.g. healthy cafeteria food, onsite fitness facilities
• Investing in the community, e.g. offering tuition subsidies/scholarships, supporting local charities, sponsoring community organizations

The environmental (Planet) impacts

In the environmental category, the impact of business activities on the planet must be considered. Minimizing any negative impact on the environment means recognizing that sustainability is more profitable in the long run. Practices that are deeper than “do no harm” can do more to promote sustainability, and a “make a difference” approach to business may include:

• Reducing energy consumption
• Reducing waste
• Disposing of harmful waste safely
• Reusing or recycling material, where possible
• Ethical sourcing, e.g. procurement from environmentally friendly suppliers
• Developing non-fossil fuel energy sources, e.g. solar, wind
• Offsetting company’s carbon footprint, e.g. purchasing carbon credits, reducing air travel

The financial (Profit) impacts

The financial category of a TBL company still exists to measure profit or loss, however, under this system the economic value generated takes into account costs of all inputs from the social and environmental accounting.

Adopting a TBL system can pose significant challenges to a company. Effective measurement of the social and environmental categories is difficult, and there are inevitable costs associated with both developing and sustaining an effective TBL accounting system.

However, most organizations will find that the benefits of any CSR policy outweigh the costs over time.

The direct and indirect benefits of a TBL system can include cost savings or new revenue streams, such as:

• Attracting employees and reducing employee turnover; people want to work for good companies and feel that their work makes a difference
• Creating goodwill and building brand loyalty; consumers support companies they feel are good for the community and environment
• Attracting investors interested in ethical or socially progressive investment
• Finding opportunities that might be overlooked in a model solely driven by profit, e.g. creating revenue by processing, recycling or upcycling used components or waste materials into useful commodities

As more organizations develop and improve their CSR models, Triple Bottom Line accounting will become a more prevalent way of measuring a company’s overall impact on people and the planet, relative to its financial profit. Adopting CSR and ethical sourcing practices can mean additional sourcing costs, which companies should consider as part of their cost analysis for importing products.

The post Here’s how to factor in the costs of ethical sourcing to your bottom line appeared first on Trade Ready.

Delivery Factors Within a Transaction

Delivering goods and/or services within a country can be complex in certain situations. Sending goods and/or services across international boundaries is challenging even for large multinational corporations, and can be a daunting experience for many small-and-medium-sized companies.

When it comes to exporting goods, an exporter must know the route a shipment is to travel so that it can be prepared for any special needs or risks during shipping. An exporter must also be aware of all import and export regulations, other regulations affecting shipped goods, and what the conditions are like at the destination point.

Will a destination port receive containers? Will handling facilities be available? As it is not always easy to get answers to these questions, even experienced exporters will benefit from the assistance of experienced intermediaries.

Exporters of goods need to keep these seven services in mind when managing international deliveries, and budget accordingly, to take advantage of them when needed.

1. Freight Forwarders

Freight forwarding is a service industry that provides a wide range of advisory, administrative and physical services to shippers to aid the international movement of goods. Freight forwarding companies arrange for the transportation and delivery of goods and commodities.

Freight forwarders provide or arrange for packaging, storage, handling, export credits, insurance and trade documentation (which might include customs clearance). Other services freight forwarders offer include:

• Arranging or providing shipment handling requirements for packing, crating, marking, inspection and storage of shipped goods
• Preparing shipping and customs documents
• Translating, certifying or transmitting documents
• Obtaining permits, licences and certificates
• Providing financial assistance by helping companies arrange documentary letters of credit or arrange collections

2. Non-Vessel Operating Common Carriers (NVOCC)

Freight forwarders may be engaged by shippers as agents or as transportation intermediaries. As agents, forwarders charge a fee that includes payment for their services, plus the cost of the transportation services.

When acting as a transportation intermediary, the forwarder pays the carrier, regardless of whether there is enough cargo available to fill the space it has purchased.

In this role, the forwarder acts as a carrier and is therefore known as a non-vessel operating common carrier (NVOCC).

NVOCCs book space on cargo ships in large quantities at lower rates, and sell space to shippers in smaller amounts. NVOCCs consolidate small shipments into container loads that move under one bill of lading. In this capacity, the forwarder can also operate as a broker. It receives a percentage of transportation charges or brokerage fees from air, highway or ocean transportation companies for finding shippers with goods to be transported.

3. Trading Houses

Trading houses are international trading companies that specialize in helping companies import or export goods. International trading houses are commercial intermediaries that focus on the long-term development of trade in goods and services that are supplied by other parties. Trading houses concentrate on exporting, importing and third country trading as core activities.

4. Cargo Insurance

Insurance is necessary to avoid the risk of major financial losses if cargo is damaged or misplaced. In most cases, loss or damage occurs during loading and unloading or while cargo is being stored between transport stages. Cargo insurance is offered under ocean marine policies. Despite the name, ocean marine insurance can cover goods being transported by air, rail, road or by marine transport.

5. Requirements for Insurance

To obtain insurance, a company must demonstrate that it has insurable interest in the goods being transported. The company can only have insurable interest if it faces the risk of a loss, if it has a financial interest in the safety of the goods, and if it does not have the potential to profit by applying for insurance.

Cargo insurance is a negotiable, transferable document. It is important to know that insurance interest needs to be set before the time of the loss.

There are many types of insurance policies that a company can obtain to cover its insurable interest. Under any type of insurance policy, it is important to negotiate and obtain optimal coverage at competitive rates, and to be aware of the procedure by which claims must be filed.

6. Third Party Logistics Providers

Third party logistics (3PL) is a common supply chain management practice in which a company outsources logistics functions to another company. The functions that are outsourced vary from company to company, but usually include one or more of the following:

• Inbound freight
• Customs and freight consolidation
• Warehousing
• Order fulfillment
• Distribution
• Management of freight to customers

Using a 3PL company can enable an organization to enhance its customer service offerings because it can use the international distribution networks and insider knowledge of importing and exporting that have been established by the 3PL.

Using a 3PL is especially beneficial to medium-sized companies, helping them remain lean and competitive while receiving the most cost-effective services.

A smaller company might not benefit from using a 3PL because the company’s logistics structures might not be large enough to justify the commissions that the 3PL will charge to take over planning and managing the functions.

Get your products and services where they need to be faster than ever before, while still maintaining quality standards and meeting all legal requirements with the FITTskills International Distribution online workshop!

7. Risk Elements and Related Costs

Any arrangement with buyers and suppliers has elements of risk—however, risks associated with international trade are often higher. Commercial, country and foreign exchange risks all exist to varying degrees in international trade, and managing or eliminating these risks can be costly. Failure to address them adequately may eliminate all profit.

Discussions with banks, insurers and export credit agencies (ECAs), will be required to ascertain the cost of managing financial exposure after assessing the commercial and country risk factors.

Volatility is a reality in international transactions, and the impact of this will vary depending on the countries involved and the goods or commodities being bought or sold.

Commodity prices fluctuate daily, and while commercial contracts and/or guaranteed forms of payment will fix prices, extraordinary circumstances can sometimes add costs or present an opportunity for the importer to reduce the price paid.

Such extraordinary circumstances often lead to unforeseen costs and the risk of this is often difficult to accurately predict or to cost with precision. Consequences of a volatile target market include:

• Dispute resolution costs
• Demurrage charges (delays in loading or unloading vessel)
• Delays in transit
• Documentation errors or omissions
• Legal fees
• Delays in funds transfer
• Unanticipated costs due to travel or other expenses

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Dmitri Tchernychov can’t remember a time when he was not fascinated by the sheer volume of goods constantly in transit all over the word in ships, planes, trains and trucks. He would think about what must go on behind the scenes to keep all of those vehicles and shipments moving and knew he wanted to be a part of it.

Dmitri discovered the International Trade and Transportation Logistics program at the British Columbia Institute of Technology (BCIT), where he connected with knowledgeable instructors who inspired him further to pursue a career in global transportation.

“During my years at BCIT, I had great instructors who helped me truly understand the full spectrum of the transportation industry, as well as international trade. As a result, I have developed a true passion and admiration for the industry.”

The quest to become a logistics expert

While completing his studies, Dmitri was able to get a foot in the door of his chosen career at Perishables International Transportation, where he gained experience handling logistics operations for fresh and frozen perishable goods.

After graduating from BCIT in 2008, Dmitri was already on his way to a successful logistics career, armed with his FITT diploma in International Trade and his proficiency for languages, including fluency in Russian, English and French. Dmitri also completed the Logistics, Materials, and Supply Chain Management program at the Canadian Institute of Traffic and Transportation (CITT) in 2009.

“The FITT-accredited courses that I took helped me tremendously to expand my vision in the transportation industry throughout all modes of transportation,” Dmitri says.  “Understanding the financial aspects of ocean freight and foreign investments really helped put things into perspective.”

I want to encourage other individuals that are new to the transportation industry to acquire their knowledge through the FITTskills program, as I am confident enough to say that it is an important step in gaining an understanding of the industry,” Dmitri says.  “It’s part of being knowledgeable and providing great value to my company’s customers, and it helps those customers to be confident in what we say or do for their businesses.”

“While I was studying I had to get really deep into the chapters about some of the modes of transportation that I’m not familiar with. The FITTskills program prepared me well, particularly in both legal aspects of international trade and international trade research. I found those two courses very helpful in my day- to-day tasks, considering that liability is a huge factor of our business.”

Handling chaos with a cool head

He soon landed the position of 3PL Manager for CSA transportation where he was responsible for less than truckload (LTL) cross-border service on Canada’s west coast. The four years Dmitri spent in this role prepared him well for tackling his next position as Logistics Manager at Moto Transportation Services, a move he made in 2012.

“To me every load and every shipment that I work on is interesting and special in its own way. It can get pretty crazy if something very simple is not being addressed properly. It can really turn into a nightmare. Those who are in the transportation industry will understand fully what I’m talking about, and that is what makes us the transportation experts. We can’t expect our valued customers to know everything, otherwise they’d be doing it on their own.”

Dmitri handled any twists and turns that came his way with practicality and empathy for his company’s clients, and was recognized for his abilities in 2015 with a promotion to Operations Manager.

“As an operations manager at Moto Transportation Services, based out of Vancouver, my day consists of paying careful attention to a lot of intricate details, as they can be very costly if missed.”

Planning ahead and thinking of any potential consequences that could trigger an entire chain reaction is a big part of my day-to-day duties.

In the shipping industry Dmitri and his team operate in a rigorous competitive environment. He is constantly reviewing the cost benefit analysis for each project and putting a priority on providing top-notch customer service to all his clients. He says this approach is what keeps him and Moto Transportation Services above water in the current logistics environment.

Despite their best efforts, unexpected things happen and can affect deliveries, such as weather delays, forced detours and truck breakdowns. The challenge is in keeping a cool head and doing whatever they can to problem-solve and get their shipments where they need to go.

“Patience and control of the situation, in regards to logistics, and acting under the core values of the company are tenets that I act by. Integrity, transparency, honesty and efficiency are my main guidelines that I go by when dealing with customers and colleagues on a daily basis.”

In an industry as fast-paced and subject to acts of nature and unexpected challenges as international transportation, Dmitri finds enjoyment in the variety and satisfaction in a job well done.

“What also attracted me to this industry is the fact that it’s never monotonous. There is always something going on, something unusual and different, thanks to our customers and changing policy and regulations. Interesting projects are always happening on the internal level as well, trying to work out how big volumes of freight can be controlled efficiently, and putting the right individuals on the job.”

Taking his rightful place with the experts in his field

Being knowledgeable and creditable in his industry is something that is very important to Dmitri and his clients. During his time at BCIT, some of his instructors had recommended he apply for the elite CITP®|FIBP® designation, to join the network of highly recognized international trade practitioners in Canada and abroad. Dmitri agreed and applied for his designation this spring, earning it in May, 2017.

Now that I have my designation, I will approach some of my tasks differently and look at some projects from a different perspective. I believe that I will be able to provide a better value to my company and coworkers.

“And I’ll be able to educate some of our clients to help them with their day-to-day business by reducing their cost and increasing freight volumes. I also believe that it will help me manage my company’s operations department and secure market share in the industry.”

The post Dmitri Tchernychov, CITP|FIBP – Operations Manager appeared first on Trade Ready.

• Inbound freight
• Customs and freight consolidation
• Warehousing
• Order fulfillment
• Distribution
• Management of freight to customers

Who is 3PL for?

Using 3PL enables companies to enhance their customer service offerings because they can use the international distribution networks and insider knowledge of importing and exporting that have been established by the 3PL.

Using 3PLs is especially beneficial to medium-sized companies because they can remain lean and competitive, while receiving the most cost-effective services.

Smaller companies might not benefit from using a 3PL because their logistics structure might not be large enough to justify the commissions that the 3PL will charge to take over planning and managing the functions. However, many major companies, such as IBM, use 3PLs for their logistics functions.

Some companies find that using 3PL has disadvantages, including the following:

• Loss of control over the logistics function
• Loss of contact with clients
• Disagreements over the service level that should be provided

Performance-based logistics contracts

Defence programs in many developed nations have complex global supply chains. Some governments are in a process of moving toward performance-based logistics contracts. Instead of awarding payment for services, the 3PL is paid for a guaranteed level of performance. The supplier must be able to guarantee this at lesser cost, but they are given more control over all logistical aspects. The PBL contract will clearly outline the following:

• The performance requirements
• The roles and responsibilities of both parties
• The metrics that will be used to measure performance
• Incentives on meeting or exceeding performance standards
• Detailed information on how performance will be assessed

If implemented properly, a PBL contract can effectively manage complicated and critical supply chains.

This includes the optimal placement of inventory within the supply chain to minimize manufacturing, transportation and distribution costs.

Evolution of 4PL in supply chain management

3PL is gradually evolving into what is known as 4PL, or fourth-party logistics. A 4PL company is a supply chain services provider that searches for the best supply chain management solutions for its client companies. To do this, it does not use its own resources. Instead, it outsources to 3PL companies.

The post Using Third Party Logistics (3PL) to optimize your supply chain management appeared first on Trade Ready.

Our next #TradeElite Twitter chat will be a discussion on just that!  How do you select and qualify the vendors for your value chain? What challenges might you face? How should you negotiate to achieve the best outcome for your business, and how do you manage long-term relationships with your vendors to ensure your value chain continues to run smoothly and efficiently?

Join us in less than a week with special guest moderator Emiliano Introcaso, CITP|FIBP, FITT instructor.

During our last chat, John Treleaven, CITP|FIBP, and our panel of experts showed us why it’s all about profit margins in international trade.

Here are some of the highlights!

@FITTNews #TradeElite our New Reality in Cda is our decreasing ability to sell on price alone. Agreed?

— John Treleaven CITP (@jht4x4) April 3, 2014

@jht4x4 @FITTNews Selling on price is dangerous. We need to sell on value #TradeElite

— Louei Ali (@LoueiAli) April 3, 2014

No, need to internalize CI @jht4x4 @FITTNews #TradeElite market research competitive intelligence, start & relationship approach is a must

— Estelle Metayer (@Competia) April 3, 2014

@LoueiAli @jht4x4 @SaskTrade Join Trade missions organised by yr Govt or Chamber of Commerce

— Mike Strawson (@ChamberInt_Mike) April 3, 2014

@jht4x4 @ChamberInt_Mike @SaskTrade @Competia Knowing your prospect will dictate your actions that are aligned with your goals #TradeElite

— Louei Ali (@LoueiAli) April 3, 2014

#TradeElite @ChamberInt_Mike @LoueiAli Too much talk of priority markets etc fm many sources when it is customers who matter.

— John Treleaven CITP (@jht4x4) April 3, 2014

@LoueiAli @ChamberInt_Mike #TradeElite Governments cannot create jobs, companies do not create jobs, customers create jobs…

— John Treleaven CITP (@jht4x4) April 3, 2014

@tresAudrey @ChamberInt_Mike If they have “Customers”, who are willing to pay for value, I will do it #TradeElite

— Louei Ali (@LoueiAli) April 3, 2014

@tresAudrey Very interesting. Thanks Audrey. Also EU in 2015 isn’t too far.

— Louei Ali (@LoueiAli) April 3, 2014

@LoueiAli @FITTNews @jht4x4 Culture – you never stop learning. Vital to understand differences. If in doubt, say nothing, use ears and eyes

— Mike Strawson (@ChamberInt_Mike) April 3, 2014

@ChamberInt_Mike What a fantastic attitude John that can only bring success. #TradeElite

— Louei Ali (@LoueiAli) April 3, 2014

We look forward to seeing you at our next #TradeElite chat and virtual networking session.

Look here for details on how to participate and build visibility for your international business and brand.

The post Next #TradeElite networking session & recap of why international trade is all about profit margins appeared first on Trade Ready.

At Niagara we learnt theory and real-world applications of international trade, and I really started to appreciate how the global trade environment is making our world a much smaller place by closing the gaps between culture and geography.

With so many countries trading goods with each other at the pace they are in today’s economy, consumers are now privy to so many trends and products around the world. This situation is pulling demand for particular items in new directions globally.

Starting a career in supply chain

The knowledge I gained through my international trade logistics course helped me understand the full end-to-end operations of a company’s value chain, and my focus after graduation was to secure an entry-level position within the 3PL and supply chain management industry. The first role I landed was as a Transportation Administrator (then promoted to Transportation Coordinator) at Transfreight Integrated Logistics—a leading automotive 3PL.

I was responsible for monitoring, reporting and ensuring on-time execution of all over-the-road international transportation operations across North America, as well as coordinating inbound transportation from our customers’ suppliers to their manufacturing facilities.  These roles helped me grow as a professional and an individual, and I was able to develop and exercise exceptional time-management and communications with our clients in various functional areas.

Managing the flow of finished goods

After leaving Transfreight I took a role in a different part of the supply chain industry: finished goods distribution. My current position is as a Warehouse Workflow Specialist at Genco Distribution—a 3PL in the consumer packaged goods sector—where I plan and control product flow. I’m responsible for scheduling shipments and controlling the efficient flow of inbound/outbound TL & LTL product through our 500,000 square ft. multi-client distribution centre, from which it then flows to the end consumer.

My efforts in January of this year at Genco contributed to a successful start-up of a new Canadian warehouse for two of our clients. After travelling to an existing distribution centre in the Mid-West USA, I spent time studying their standard operating procedures. I brought back and implemented what I’d learned into the launch of the Canadian distribution centre, which just recently won start-up facility of the year out of 23 new Genco operated distribution centres.

Always room to learn and grow

After just over three years in industry I’m still learning new things every day. One thing I love about supply chain management is that every day is a new day with new problems to solve. There are always issues arising that require critical thinking and adaptive solutions.

Although it can be a stressful industry (if you let it) I’d definitely recommend to anyone starting out in international trade to consider looking into a career in supply chain. If you consider yourself to be someone who’s a good planner and problem solver that can thrive in a fast-paced industry, logistics and supply chain management might just be for you.

The FITT Diploma in International Trade will fulfill the educational requirements for my Certified International Trade Professional (CITP) designation, and I now have the industry experience.

I’m looking forward to taking my final exam, earning my Diploma and applying for the CITP very shortly. In the meantime I’m beginning part-time studies to obtain my Bachelor of Commerce degree through Nipissing University to further my education while I continue building my career.

The post Building a fast-paced career in global supply chain management and logistics appeared first on Trade Ready.