Strategy at the core

A sustainability strategy acts as a guiding map with clear objectives and precise action steps to minimize adverse effects on the environment while maximizing lasting advantages for both the company and society at large.

By adhering to global sustainability benchmarks, organizations manage ESG risks and also enhance their standing among various stakeholders, including clients, shareholders, and authorities.

These sustainability initiatives foster a culture of effectiveness and purpose within the organization, which also results in reduced expenses and enhanced competitiveness in markets increasingly demanding these efforts from the companies they patronize.

1. Cascades

Packaging and hygiene products producer Cascades Inc.’s sustainability action plan recently received accolades for its forward-thinking aspects, which aim toward a circular business model. The company has focused on building a legacy on their dedication maintaining a circular supply chain for their products and packaging.

For the 5^th year in a row, Cascades was ranked among the top 100 most sustainable companies in the world.

The company’s investment policy included proactive investments aimed at sustainability goals, with perhaps the most impressive point of this plan being a target to shift all packaging to recyclable, compostable, and reusable forms by 2030. Amidst the growing urgency to combat climate change, this bold vision reflects Cascades’ resolute application of its circular economy philosophy and waste reduction practices.

Furthermore, Cascades intends to be a pillar of North America’s recycling sector with 17 sorting facilities, while having an impressive high usage ratio of recycled fibers in its products at 83%. Through its guarantee that more than 90% of all the goods manufactured are compostable, it’s estimated that 2.2 million tonnes of fiber is diverted from landfill sites, which leads to the preservation of over 31 million trees. Cascades is a leader in demonstrating a strong commitment to the environment and to society.

2. IKEA

IKEA’s sustainability strategy is based on three fundamental pillars: living sustainably and healthfully, focusing on climate action and fairness, and safety first. Applying several programs and strategies, the “IKEA Concept” aims to expand the scope of its actions and expand the coverage of sustainability action through 2030 – to reach more than one billion people around the world.

It’s a broad-ranging program that may encourage a huge section of the global population to adopt sustainable lifestyles and minimize the adverse impacts of their activities.

IKEA acknowledges the increasing importance of the contribution of families to the health, environment, and resilience of today’s world. For instance, these groups are helping to take care of our environment by working towards the reduction of pollution and carbon emissions through promoting energy and water conservation, the use of renewable energy sources, as well as suggesting sustainable means of nutrition.

Among their efforts, IKEA is are 100% committed to sustainable cotton ensuring the cotton they use is grown with less water and chemicals, helping areas that are subject to erosion and water scarcity.

The company has also prioritized drastically reducing greenhouse gas emissions across the IKEA value chain and moved toward the use of only renewable or recycled materials by 2030.

All wood used in IKEA products is also sourced from responsibly managed forests which do not contribute to deforestation.

On top of that IKEA has become very popular by developing products that are not just the cheapest but also the greenest, hence people are observing IKEA’s green credentials and making some effort to follow their lead.

IKEA’s vision: through 2030, reaching zero fossil materials or fuels used. This should be a major contributor to the reduction of global warming.

3. Pact

Pact developed a sustainability strategy which is based on organic cotton, fair trade practices, and environmentally smart shipping. Its initial purpose was to be an underwear brand, which has extended into men and women’s clothing.

Being a label that offers all kinds of organic cotton with tops, dresses, and lounge wear, it now ensures it sells only GOTS organic cotton, and that its processes are also certified by fair trade factories.

A notable example of their circular fashion initiatives is their partnership with the “Give Back Box” program, whereby people can use free shipping labels distributed by Pact to send on their used clothing on to multiple charities.

Through teaming up with SimpliZero and organizations similar to that, Pact ensures that each one of its products is manufactured on a zero-emissions basis and completely carbon neutral.

Packaging with Pact is all about paper eco envelopes with FSC-certified 100% recyclable material and cardboard boxes constructed of recycled material. All in all, Pact’s sustainability plan consists of fair-trade alternatives, carbon emission offsetting and ecologically sustainable packaging, showing the company’s involvement in the environmental and societal responsibility of the fashion business.

4. Novo Nordisk

A pharmaceutical giant, Novo Nordisk manifests its dedication to the environment through an innovative program called “Circular for Zero”, which tries to get Novo Nordisk to a point where the company’s activities pose no harm to nature.

The company reported a more than 66% reduction in carbon emissions and progressed even more after achieving 100% renewable energy consumption in all production centers in November 2020.

Aware of the magnitude of the sustainability issue, Novo Nordisk emphasizes that it will shift its supply chain and zero emissions out by 2045 through a set of bold ambitions, justifying its unalloyed dedication to sustainability.

Novo Nordisk not only has to face environmental issues but also solve the matter of equal access to treatment and affordable treatment for all patients who are in dire need with the help of their company.

The company’s “Changing Diabetes® in Children” Program is global and in almost 380 hospitals in low and middle-income countries, the initial goal being to create a platform where children with diabetes would have access to the right medical treatment.

Collaborating with UNICEF as a partner helps the company build an operations strategy concerned with identifying environmental factors. The activities demonstrate how Novo Nordisk encompasses the whole approach to disease prevention.

5. Clif Bar

Clif Bar implements CSR through various environmental initiatives including waste reduction, using renewable energy sources and campaigning for protecting our forests. Moreover, Clif Bar aims to make all its packaging recyclable, compostable or reusable by 2025, and this process is going to begin with the classic Clif Bar packaging.

Reducing plastic usage stands as the main principle followed by the company, and it plans to minimize the consumption of plastic by 12% and to acquire 25% of its plastic from recycled or renewable sources by 2025. In addition, Clif Bar has committed to remove 1000 tons of plastics from the ocean within the specified years.

Besides that, Clif Bar has moved towards the harnessing of renewable energy which is one of the company’s main objectives, and to have all their production facilities powered by clean energy by the year 2030 as well as cutting down CO2 emissions by half.

The firm also aims at planting up to 1 million trees by 2030.

Clif Bar’s process-based approach in its value chain is an indicator of the organization’s determination to make the whole food system sustainable – from sourcing raw materials to the final product delivery – as healthy as possible.

Sustainability with purpose

The path to sustainability for companies no matter small or large is by way of combining purpose and faithfulness. It’s clear that sustainable management can be applied not just in the operations of business, but also can cover waste disposal, renewal of energy sources, procurement of raw materials, and reduction of plastic use.

These brands are serving as leaders, demonstrating how companies can start modifying their business practices by focusing on environmental issues and building a portfolio of green activities to create this future. The promotion of sustainability is not solely a decision, but also an obligatory commitment. Its advantages are not only for the company and its customers, but for the entire global community as a whole.

Unsurprisingly, this year’s top stories included several focused on technology such as digital trade and AI. There was also a lot of interest in sustainable practices, tips for women leaders and the value that immigrant-led businesses can bring in Canada and beyond.

Enjoy this year’s top international trade articles.

1. 10 global trade trends we’ll be watching in 2023

10 global trade trends we’ll be watching in 2023

2. Why digital trade should be a cornerstone of Canada’s Indo-Pacific Strategy

Why digital trade should be a cornerstone of Canada’s Indo-Pacific Strategy

3. 7 emerging cleantech suppliers that can help you create a more sustainable supply chain

7 emerging cleantech suppliers that can help you create a more sustainable supply chain

4. Unpacking the Digital Transformation of Trade

Unpacking the Digital Transformation of Trade

5. How to Take Your Business Global – 5 Important Steps for Female Leaders

How to Take Your Business Global – 5 Important Steps for Female Leaders

6. Investing in immigrant founders to unlock the next generation of Canadian innovation

Investing in immigrant founders to unlock the next generation of Canadian innovation

7. 8 common global procurement mistakes made by small and medium sized businesses (SMEs)

8 common global procurement mistakes made by small and medium sized businesses (SMEs)

8.Top 10 things we learned at the WPO 2023 Entrepreneurial Excellence Forum

Top 10 things we learned at the WPO 2023 Entrepreneurial Excellence Forum

9. 5 ways AI is transforming international trade

5 ways AI is transforming international trade

10. Top 10 fastest growing international trade jobs in 2023

Top 10 fastest growing international trade jobs in 2023

With a recession being predicted to hit the U.S. economy in late 2023 and early 2024, the job market is slowing down as fears continue to mount. The tech industry in particular contributed to mass layoffs this year, driven by some of the biggest names in the world including Microsoft, Meta, Google, Yahoo, Amazon etc.

Google’s parent company Alphabet reduced their workforce by approximately 12,000 roles. CEO Sundar Pichai wrote in a letter to Google employees “we hired for a different economic reality than the one we face today.”

The global economy is slowly recovering from the aftereffects of the COVID-19 pandemic and grappling with situations like regional conflicts and disrupted trade routes. This also means that the international trade landscape is evolving drastically and so is job insecurity.

In such a dynamic job market, there are certain roles that are growing increasingly popular. The demand for skilled professionals in these job roles is skyrocketing.

So, if you’re looking for jobs with good scope and stability globally, consider exploring international trade. Let’s look at some of the fastest growing international trade jobs in 2023 globally and how you can break into these thriving sectors.

Marketing international trade jobs

The global marketing landscape is more diverse than ever before. A career in marketing usually involves good pay and quick growth. According to the U.S. Bureau of Labor Statistics there is expected to be a 10% employment growth rate for marketing managers from 2021 to 2031. Professionals who understand international markets and consumer behavior are in high demand. Here are some of the most in demand global trade jobs that in the  marketing sector.

1.    Global Growth Manager

As an increasing number of businesses continue to expand globally, the demand for multifaceted professionals who can identify and capitalize on opportunities for expanding businesses internationally is greater than ever. Forbes talks about hiring the right leaders as one of the keys to getting global expansion right. Here is where Global Growth Managers come into the picture. They meticulously research market dynamics, consumer behavior, and emerging trends to formulate strategic plans for global expansion. By leveraging data-driven insights to navigate international business landscapes, they are indispensable assets in the quest for sustained global growth.

2.    International Business Development Executive

International Business Development Executives are instrumental in fostering global growth for companies operating in today’s interconnected world. Their job role involves nurturing strategic partnerships, collaborations, and alliances with businesses and organizations worldwide. With a deep understanding of international markets and the skills needed to identify new business opportunities in various regions and industries, these executives are at the forefront of forging international connections and creating synergies in the global marketplace.

E-commerce international trade jobs

E-commerce has become a cornerstone of international trade. With global e-commerce expected to show an annual growth rate of 11.17% from 2023 till 2027, it’s safe to say that it’s a thriving industry. Hence, it’s no surprise that the demand for skilled professionals to fill e-commerce jobs is at an all-time high right now. So, let’s explore some jobs that are increasingly growing in demand in e-commerce.

3.    E-commerce Operations Manager

At a time when e-commerce is thriving, E-commerce Operations Managers act as the driving force behind the seamless functioning of online businesses across borders. The U.S. Bureau of Labor Statistics reports that approximately 2,300 new jobs will be added for general and operations managers in e-commerce between 2016 and 2026. E-commerce Operations Managers are responsible for orchestrating and optimizing the day-to-day operations of e-commerce platforms, ensuring efficient order processing, inventory management, and timely delivery to customers around the world.

4.    E-commerce Business Analyst

Analytics is taking the world by storm and more businesses are recognizing the importance of leveraging big data in their expansion strategies. According to the World DataScience Initiative, about 80% of global enterprises are investing in a data analytics division, creating a great demand for analysts. E-commerce platforms collect a wealth of data and here is where E-commerce Business Analysts come into the picture. They are responsible for deciphering and decoding data and transforming it into actionable insights that drive strategic decisions. They are the analytical minds behind the success of international online businesses.

5.    E-commerce Project Manager

Project Managers are a crucial part of every organization and industry and e-commerce is no exception. The Project Management Institute’s ‘Project Management Job Growth and Talent Gap 2017–2027’ report predicts that by 2027, employers will need nearly 88 million individuals in project management-oriented roles. E-commerce Project Managers take on the responsibility of planning, executing, and overseeing critical e-commerce initiatives. Their role is pivotal in delivering projects on time and within budget, which is a necessity in today’s rapidly evolving e-commerce landscape.

International supply chain jobs

The supply chain sector is the backbone of international trade – transactions within global supply chains account for 76% of world trade. This is why it comes as no surprise that in today’s rapidly evolving global marketplace, supply chain professionals are at the forefront of ensuring that businesses can adapt, grow, and remain competitive. Here’s an in-depth look at the top supply chain jobs that are growing in prominence.

6.    Director of Procurement

Procurement is an essential aspect of the supply chain and the role of Director of Procurement is a crucial one. These individuals are responsible for securing the necessary materials and resources for businesses to operate on an international scale. This includes sourcing products globally, negotiating contracts, and managing supplier relationships.

7.    Supply Chain Analyst

Several predictions highlight that the demand for supply chain graduates will go through the roof in the next two years due to the fragility of global supply chains. Those will the skills of a Supply Chain Analyst should have no trouble landing a position. Supply Chain Analysts are experts who gather and analyze data on inventory, transportation, and production to identify bottlenecks and inefficiencies. They use this data to make informed decisions that enhance the supply chain’s efficiency and responsiveness to market changes.

8.    Process Improvement Manager

Process Improvement Manager is a relatively new job role but one that is rapidly growing in popularity. Their key responsibility is to find ways to enhance the overall efficiency of supply chain operations. They do this by identifying opportunities for streamlining processes, reducing waste, and improving the overall productivity of the supply chain. By implementing Lean and Six Sigma principles, they strive to drive continuous improvement, in an effort to make supply chains more agile and cost-effective.

International trade finance jobs

The finance sector in international trade has grown leaps and bounds over the past decade, with professionals playing a pivotal role in both financial management and technological adaptation. Diverse job opportunities and the integration of technology into financial practices means that the finance sector offers a promising career path for those seeking to navigate the financial frontier of international trade. Let’s look at some roles gaining more attention.

9.    Financial Risk Analyst

According to the Association for Financial Professionals Risk Survey, financial risks were among the top four risks having the greatest impact on earnings in the next three years. Financial risks can often make or break a business and this is where the role of Financial Risk Analysts becomes crucial. These professionals identify and manage the financial risks associated with international trade, including currency fluctuations, credit risk, and market volatility. They also curate risk management strategies to protect businesses from adverse financial events and help them navigate the complexities of international markets.

10.    Fintech Consultant

With the global fintech market being expected to reach a market value of $326 billion by 2026, the need to leverage this innovative technology in international trade is becoming imperative. Fintech Consultants help businesses achieve this by advising them on how to harness financial technology (fintech) solutions to improve their international trade operations. They help companies adopt digital payment systems, blockchain, and AI-powered financial tools to enhance efficiency and reduce costs.

Navigating the fast-growing world of international trade jobs

International trade is flourishing and so are opportunities for those equipped with the right skills and knowledge. If you have the right training and credentials, you’re one step closer to landing one of these lucrative jobs. Invest in specialized education, such as degrees in supply chain management or finance, to get the foundational knowledge needed to excel in these fields.

In addition to that, credentials that show you have knowledge and skills in key competency areas of international trade will give you a competitive advantage in this job market.

Staying informed about the latest industry trends and global market developments is also crucial. Follow trade organizations on social media (we recommend connecting with FITT’s growing LinkedIn community), sign up for industry newsletters, and look for networking events in your area.

Lastly, hone your language skills, especially if you want to land import and export jobs, as proficiency in multiple languages can enhance your appeal to global employers. Once you have developed the skills to grow your global trade career, the world of international trade jobs is yours to explore.

Canada, being the world’s second-largest country in terms of land size, boasts an abundance of natural resources. This rich landscape offers a wealth of water, underground treasures, and harvests vital for global momentum. Yet, when we look at the economy, Canada appears smaller. Its economy is ten times smaller than that of our neighbor to the south. As a G7 member, Canada possesses the smallest real GDP among its peers. There are about 1.3 million Canadian businesses; however, fewer than 5% are export-ready.

According to Innovation, Science, and Economic Development Canada’s annual report, exports drive Canada’s economic growth and correlate with real GDP growth. Moreover, exports allow businesses to expand beyond Canada’s modest domestic market.

But there’s a catch: few Canadian businesses export, and of those, over 85% heavily rely on the US market.

This over-reliance becomes uncomfortable considering external factors like the Buy American Act and severe competition, which diminishes the appeal of exporting.

The aim of this article isn’t to deter but to spotlight the value of an export strategy, urging Canadian businesses to look EAST – namely, the Indo-Pacific Region.

Why Indo-Pacific?

The Indo-Pacific region, with its 40 economies and over four billion people, amounts to CAD in economic activity, making it the world’s fastest-growing region. By 2040, the region will account for over half of the world’s GDP and more than 65% of its population.

Recognizing this, the Canadian government unveiled its Indo-Pacific strategy in late 2022, signaling a shift in export direction and resource allocation. For Canadian businesses, seizing this opportunity not only ensures sustainable growth but also bolsters the national economy for future generations.

However, every opportunity presents challenges. Penetrating a new market, especially an exotic one, isn’t simple. But Canada has an edge – strong ties to the region. Thanks to our immigration policy, 20% of Canadians have sort of connections there. Additionally, Canadian products have historically been well-received. An effective approach for Canadian businesses is to capitalize on e-commerce as a market-entry strategy.

The Indo-Pacific e-Market

The expansive realms of the Indo-Pacific market are responsible for an overwhelming 90% of the global e-commerce growth. Adopting cross-border e-commerce as a market-entry strategy therefore stands out as not just practical but crucially essential. The evidence is compelling:

The e-commerce market of Greater China alone dwarfs many, equal to three times Canada’s entire GDP.

Powerhouse brands such as Alibaba and JD.com are not merely platforms but are reshaping the very fabric of consumer behavior. As we gaze towards Japan, the transformation becomes even clearer. The island nation has seen its e-commerce landscape grow by nearly 30% in the share of retail distribution. Platforms like Rakuten and Amazon Japan have stepped up as the new-age shopping titans, gradually overshadowing traditional retail outlets.

South Korea’s digital footprint is equally noteworthy. In a span of five years, from 2017 to 2022, the nation’s cross-border e-commerce market made a remarkable leap, soaring from US$ 2 billion to a staggering US$ 4.5 billion. The success stories of platforms like Coupang and Gmarket illuminate this trajectory, with an average annual growth rate of 23%.

And then there’s Singapore, a beacon for the Southeast Asian e-commerce domain, dubbed  the “e-commerce gateway” to its larger region. Projections suggest that eCommerce sales in this region will skyrocket, possibly quadrupling from US$ 38 billion in 2019 to an expected US$ 172 billion by 2025. This, combined with the fact that 70% of the region’s population is now online, paints a vivid picture of the digital revolution in play.

With the inherent characteristics of e-commerce, from the invaluable real-life data tracking to the immediacy of end consumer interaction, it is rapidly establishing itself as the preferred channel for market exploration.

Given the sheer purchasing power and wide acceptance among consumers, e-commerce isn’t just another platform; it can be the core of your omnichannel strategy. Such a strategy can seamlessly dovetail with traditional channels like physical stores, offering an enhanced customer experience. This synergistic approach, when infused with the allure of authentic Canadian products, promises not just sustainability but a pronounced edge in the competitive marketplace.

3 Steps to Develop Your E-Commerce Strategy for the Indo-Pacific

So far, we have delved deep into the macro-level benefits of leveraging e-commerce to enter the Indo-Pacific region. Moving forward, I want to introduce a tailored framework that can guide your e-commerce strategy development.

Think of it as a three-step process designed to provide a clear pathway: from integrating your business into the region’s e-commerce ecosystem to managing e-commerce operations and marketing activities once you’re established.

1. Strategizing

This initial phase is all about exploration. Dive deep into understanding your export readiness, assessing the feasibility of potential markets, studying the competitive landscape across both traditional and digital channels, identifying risks, formulating the most effective pricing strategy, and forecasting your financial performance.

• Readiness and Feasibility Analysis: Begin by evaluating your business’s readiness to venture into the Indo-Pacific e-markets. This entails an assessment of internal capabilities, gauging the product-market fit, and pinpointing potential barriers.
• Pricing Strategy Development: Weigh various pricing models, from cost-plus to competitive pricing. Consider aspects like local purchasing power, competitive landscape, import duties, and taxes.
• Financial Performance Analysis: Project potential revenue streams, costs, and profit margins. Account for initial investments, sustained operational costs, and expected returns.
• Market-Entry Strategy Compilation: Decide on your entry strategy. Are you targeting a couple of countries first or aiming for a more expansive reach? Your resources, willingness to take risks, and market insights will guide this decision.

2. Integrating

The foreign e-commerce markets you’re targeting operate on platforms that might be unfamiliar to western businesses and occasionally aren’t even accessible via common channels like Google. There’s also the challenge of navigating diverse cultures and languages. Not to mention ensuring the protection of your product ideas and brand. This stage emphasizes ensuring you’re on the right platforms, effectively reaching your target audience, communicating appropriately, and operating within legal confines.

• Platform Application Management: Determine the e-commerce platforms that dominate in your target Indo-Pacific areas. Think Alibaba and Lazada, but also keep an eye out for niche platforms tailored to specific locales or products.
• Ecosystem Onboarding & Integration: Grasp the entire e-commerce ecosystem of the region, which encompasses payment methods, delivery mechanisms, and review systems.
• Brand & Marketing Material Adaptation: Localize your branding. It’s more than just translation; it’s about resonating with local traditions, sentiments, and values.
• IP Protection Measures: Intellectual property norms can differ significantly across markets. Ensure you’re compliant by familiarizing yourself with local regulations.
• Platform Configuration & Optimization: Customize your online store to align with local preferences. This might mean adjusting your site’s design, improving its mobile-friendly features, or incorporating region-specific functionalities.

3. Managing Day-to-Day Operations

E-commerce operations in overseas markets, akin to the one in Canada, demand regular oversight and consistent nurturing. Navigating multiple, especially as vast as several Asian e-markets, can be tricky. Challenges range from language barriers and time zone differences to intercultural communication nuances.

As business owners, agility and adaptability are key. You might often find the need to collaborate with local experts to bridge cultural and linguistic divides, synchronize business processes effectively, and expedite your international business’s growth. Regardless of whether you’re handling tasks in-house or outsourcing, there are crucial areas of focus:

• Marketing Management: Craft and roll out localized marketing strategies, leveraging tools like SEO, PPC advertising, social media, and collaborations with local influencers.
• Operation Management: Ensure the smooth functioning of daily operations, from inventory management and prompt order processing to effective customer service.
• Supply Chain Management: Familiarize yourself with the logistics landscape. Establish relationships with dependable local suppliers, manage warehousing facilities efficiently, and prioritize timely deliveries to enhance customer experiences.
• Quality Control & Reporting: Consistently assess the caliber of products or services you’re offering. Set up comprehensive reporting systems to review sales data, gather customer feedback, and monitor other critical performance metrics, ensuring continuous improvement.

Why not seize the opportunity in this untapped market?

The Indo-Pacific is an untapped market with tremendous growth potential. As countries like the UK, US, Germany, Italy, and France increase their footprint, Canada is well-positioned to capitalize on this opportunity. E-commerce offers an efficient and economical route for Canadian businesses to make inroads. With the framework provided, businesses have a head start. And remember, the governmental agencies like Export Development Canada and Trade Commission Services are available to assist throughout the exporting journey.

By meticulously crafting your strategy, smoothly integrating into the Indo-Pacific e-commerce ecosystem, and managing daily operations efficiently, Canadian businesses stand to capture the immense potential this burgeoning market presents.

A supplier diversity program aims to source supplies from diverse businesses, often focusing on minority-owned, women-owned, veteran-owned, LGBTQ-owned, or small businesses. These programs promote inclusivity, foster economic growth across various communities, and contribute to the company’s Environmental, Social, and Governance (ESG) metrics.

Supplier.io, a premier supplier diversity management solutions provider through data analytics and SaaS, unveiled the 2023 Supplier Diversity Benchmarking Report. This inaugural report analyzes over $1.4 trillion in real supplier expenditures spanning 466 businesses and exceeding 15 industries.

According to the report, companies typically allocate 3.6% of their spending to certified diverse suppliers, with the upper echelon averaging 9.1%. Furthermore, 7.5% is spent with small and diverse suppliers, underscoring the significance of examining reliable data.

Companies such as Intel, IBM, and Johnson & Johnson have been acknowledged for their exceptional supplier diversity programs. For example, three years ago Intel had set an ambitious target to escalate global annual expenditure with diverse suppliers to $2 billion by 2030. They accomplished $2.2 billion in diverse supplier expenditure in 2022, surpassing their goal eight years early.

Small businesses can also significantly benefit from embracing supplier diversity programs, a notion supported by a report from Bain & Company with data from Coupa.

Analyzing procurement expenditures of over 350 global companies, the report found that spending on diverse suppliers grew by an average of 54% between 2017 and 2020. Furthermore, top-quartile companies in diverse spending saw an average of 0.7% more savings on total procurement costs.

Many diverse suppliers are smaller businesses that require targeted support, including onboarding, risk mitigation, and mentoring, to succeed.

These findings emphasize that supplier diversity is not merely a social responsibility but a practical and profitable strategy that can be particularly advantageous for small businesses, leading to tangible financial benefits and growth opportunities.

Defining supplier diversity

Supplier diversity represents a business approach that strives to broaden its supplier base for the procurement of goods and services. This broadening of sourcing pathways provides several commercial and societal benefits to the buying businesses, diverse suppliers, and the overall business environment and community at large.

A diverse supplier is generally considered to be a business that is majority-owned (51% or more) and managed by an individual or group historically marginalized or overlooked in the economy. The initial efforts towards supplier diversity focused on ensuring organizations included small businesses and businesses owned by minorities and women during their procurement processes. Over time, supplier diversity initiatives have evolved to incorporate businesses owned by veterans, individuals with disabilities, and members of the LGBTQ+ community.

Advantages of supplier diversity programs

Initiating and implementing supplier diversity programs can benefit companies in a number of ways from both the ESG perspective and a practical business standpoint. Here’s how.

From an ESG supply chain perspective

When discussing the advantages of supplier diversity programs, the ESG (Environmental, Social, and Governance) aspects are an obvious place to start. Here’s a deeper dive into each element:

Environmental impact: Opting for local suppliers often implies less transportation and fewer logistics, resulting in lower carbon emissions. Besides, some diverse suppliers are small businesses that have environmentally friendly practices at their core. Partnering with such suppliers can help a company reduce its overall environmental footprint, contributing positively to its ESG metrics.

“Supplier diversity allows us to make an even greater contribution to the long-term economic stability of our communities.”

Tim Dismond, Chief Diversity Officer, CBRE

Social responsibility: Supplier diversity programs reflect a company’s commitment to social justice and inclusivity. When organizations actively engage with minority-owned, women-owned, or veteran-owned companies, they empower these communities and contribute to broader economic growth. This commitment enhances their social score in ESG evaluations and establishes them as socially responsible businesses.

Governance: A well-executed supplier diversity program demonstrates that a company upholds ethical business practices. Companies can enhance their governance standing by ensuring fairness and inclusivity in their procurement processes. A high governance score reflects well on the company, attracting ethical investors interested in businesses prioritizing good corporate governance.

From a business standpoint

From a practical business perspective, supplier diversity programs offer significant advantages that include boosting the bottom line:

Access to innovation: Engaging with diverse suppliers exposes companies to new ideas, unique products, and services they may not encounter in their traditional supply chain. These suppliers often bring different perspectives, creativity, and innovation, driving competitive advantage and growth.

Market expansion: Diverse suppliers have unique insights into their communities and markets. Partnering with these suppliers can give companies a better understanding of these markets, enabling them to tailor their offerings more effectively and reach new customer segments.

“Creating opportunities for innovation, increasing purchasing power within diverse populations, and developing jobs in our communities are a few benefits of having a well-defined supplier diversity program.”

Jonita Wilson, Chief Diversity Officer, Discover

Increased profitability: Encouraging diversity in suppliers also means fostering competition. This increased competition often leads to better pricing, quality, and service, improving the company’s bottom line. Research conducted by the Hackett Group revealed that enterprises with enduring supplier diversity programs realized a return on investment (ROI) 133% higher than businesses persisting with their traditional suppliers. The study indicated an enhancement of $3.6 million in a company’s profitability for every $1 million expended on procurement and operational costs.

Enhanced reputation: Companies that commit to diversity will likely enjoy an improved reputation in today’s socially conscious business environment. Customers, employees, and investors increasingly seek organizations that align with their values. A robust supplier diversity program can help attract these stakeholders, resulting in increased sales, a motivated workforce, and access to capital.

Setting up a supplier diversity program: Practical steps

Implementing a supplier diversity program may seem like a daunting task but it can be simply broken down into seven manageable steps. Here are the practical steps involved.

1. Secure buy-in from leadership

The first step in establishing a supplier diversity program is to ensure support from top-level management. This buy-in is critical as it establishes the importance of the program within the organization and ensures the necessary resources are allocated. Demonstrate the business case for diversity, including benefits such as innovation, market expansion, and improved ESG ratings to gain this support.

2. Define your goals

Explain what you hope to achieve with your supplier diversity program. Are you aiming to innovate? Expand into new markets? Improve your ESG score? Clearly defining these objectives will not only guide the implementation but also help measure the program’s success.

3. Identify potential diverse suppliers

Start by identifying potential diverse suppliers that align with your business needs. You can find potential suppliers in databases such as the National Minority Supplier Development Council, Women’s Business Enterprise National Council, or the local chamber of commerce. Networking at business events, trade shows, and supplier diversity conferences can also help identify potential partners.

4. Assess and qualify suppliers

Just like with any other supplier, it’s important to assess and qualify diverse suppliers based on your company’s needs and standards. This involves evaluating their capabilities, financial stability, certifications, and track record.

5. Establish relationships and partnerships

Once potential suppliers are identified and qualified, start building relationships. This process might involve mentoring or providing resources to help suppliers meet your requirements.

6. Train your procurement team

Your procurement team should be trained to understand and value the importance of supplier diversity. They need to know your company’s commitment to supplier diversity and how to effectively work with diverse suppliers.

7. Track and measure results

Establish key performance indicators (KPIs) and regular reporting processes to measure the success of your supplier diversity program. This might involve tracking spend with diverse suppliers, the number of various suppliers, or innovations resulting from diverse supplier relationships.

8. Celebrate and communicate success

Once your supplier diversity program starts to achieve its goals, share your success! This could be in the form of internal communications to employees, press releases, or even case studies showcasing successful partnerships with diverse suppliers. Not only does this celebrate your progress, but it also enhances your company’s reputation and encourages other businesses to pursue similar initiatives.

The power of diversity in your global value chain

A supplier diversity program is not just a socially responsible initiative but a strategic business decision that can lead to increased profits, improved brand image, and enhanced ESG ratings. Businesses can create a more inclusive, innovative, and resilient supply chain by identifying diverse suppliers, fostering partnerships, and continually evaluating success.

As Intel’s Former Chief Diversity and Inclusion Officer, Barbara Whye, rightly puts it:

“Supplier diversity is not just good for business, it’s good for the world. Our collective success will ensure a bright future for all.”

Sourcing, business communications, supplier selection, contract management and supplier relationship management are among the most important activities in the procurement process.

Procurement specialists at SMEs usually learn the main skills of the job by trial and error, which often leads to unnecessary costs to organizations. It is obvious that knowing and avoiding these types of mistakes will help small enterprises save money and increase profit.

Here are eight of the most common global procurement mistakes made by SMEs.

1: Relying on internet searches for supplier selection

Everyone can go online and find a directory of hundreds of suppliers. But these lists often include fradulent and/or unreliable companies.

Conducting an online search for suppliers is a primary and required step for sourcing, but it is not sufficient for a final decision.

Many companies have made this procurement error and been subject to phishing and fraud because they placed their trust in suppliers based on what they found online.

It is essential to do your due diligence and investigate the credit worthiness and reliability of any supplier via a variety of methods including ‘in-country’ technical visits, consulting with embassies, consulates and trade and investment offices, contacting international purchasing offices, etc.

These vetting methods can require considerable budgets, but companies can find budget-accessible tactics that work for them, and the amount paid for due diligence should be considered a worthwhile long-term investment in procurement systems.

2: Accepting hidden risks with samples

Requesting samples and making supplier decisions based on sample quality is a common course of action in procurement, but many companies make these common procurement mistakes with samples. Firstly, they do not have a clear process in place to ensure the sender is the actual manufacturer of the sample, and it is not another company’s product.

Some less-than-ethical suppliers  may send samples to potential customers which were manufactured by a third party and claim them as their own product. Therefore, it is better to get a sample from the production line during a technical visit.

Secondly, samples may be touted as having been tested by technicians. Even if this testing seems reliable, it’s important to have the samples independently tested in a laboratory and attach the test results to the contract to ensure future products will maintain the same quality based on measurable criteria.

3: Accepting an extraordinarily low price

If it seems too good to be true, it probably is. Uncharacteristically low prices are the first sign of cheating in international procurement, and yet, many companies make this procurement mistake and become victims of this tactic used by below-board suppliers.

If the quoted price is unbelievably low, procurement specialists should understand that something is wrong.

Often the scam will see the suppliers receive a part of the payment before delivery – and then they disappear.

4: No plan for product modification

Some SMEs buy the same product for a long period of time without any improvement or modification. There is always room for product improvement, but the buyer’s  feedback is essential. Many improvements can be made without  requiring significant additional costs and investments.

Examples of possible modifications include: product redesign, modifying technical characteristics, changing packaging, omitting additional features, and finished cost reduction. Over time, failing to update and improve the product or input will undoubtedly reduce your market competitiveness.

5: No clear plan for quality control

When buying from a foreign supplier, it is crucial to evaluate the quality of the product at the right time and place  by your own team or third-party inspection bodies.

The time and place of inspection can be during production, before delivery, at the main port or airport of shipment, or at the destination in your own premises.

The inspection test plan and detailed criteria and standard features of the product must be clear and attached to the contract.

6: Neglecting packaging details

Packaging is of high importance in any purchase, especially in foreign procurement. Packaging is essential for the shipping, protecting, and marketing of your products, but in many cases, SMEs do not negotiate and determine the details of packaging and assume that the supplier will take care of it.

Five aspects of packaging must be agreed upon between the supplier and buyer:

1. Type of packaging
2. Material
3. Specifications
4. Labeling
5. Marking

Even though the supplier is responsible for packaging in all Incoterms rules, it is necessary to discuss and determine all the related details in the contract to avoid ambiguity.

7: Trusting verbal promises

A majority of the earliest stages of business communications happen through non-written negotiations. Talking in a face-to-face meeting, phone calls, and online sessions are common steps in the purchasing process. Although all these communications are important and details of the agreement often need to be worked out verbally first,  one should never rely solely on these verbal agreements.

It’s crucial that you clearly document what has been agreed upon to avoid future misunderstandings.

One clearly written clause in a contract is better than a hundred pages of interpretation and explanation in the court.

8:  Neglecting intellectual property rights in contracts

Different aspects of intellectual property are important, and should be discussed in detail in most purchasing, manufacturing, and long-term supply contracts. Most North American companies invest a lot of money in research and development, and after designing a product, due to cost efficiencies, they may decide to outsource the manufacturing process to suppliers in other countries.

This opens up the risk that the supplier will infringe or tamper with the intellectual property of the buyer and manufacture and sell the same product to other companies.

It is essential to define the intellectual property details and determine the consequences of breach and misconduct in this regard. Two important elements of intellectual property which are at risk are industrial design and trademark. It is recommended to register the trademark and industrial design in the country of the supplier and also protect them in the contract between the supplier and buyer.

“…companies that export make 121% more money, grow faster, last longer, are better connected within supply chains, are more resilient to economic downturns, and are more productive, competitive and innovative.” 

It’s no wonder then, that the majority of Fortune 500 entities operate locations in foreign countries, according to research by CapRelo.  

Coming from a broader perspective, there is no bigger pool of consumers than the global one. Take the USA, for instance.

“More than 95 percent of the world’s consumers are outside of the United States,” notes the US ITA (International Trade Administration). “Your competitors are increasing their global market share, and you can too.” 

The story is the same for businesses in all countries around the world too. Whether you’re looking to expand operations or simply want to export your products and services to an international locale, the world is a big oyster for you and your business to take advantage of.  

So, the bigger question on your mind should not be why should I be expanding my business to global markets? But, instead, how do I expand my business into global markets safely and successfully? 

The answers are out there, and they require diligent decision-making processes and strategies that have been tried and tested by the most successful companies around. There is no secret recipe to it all, you just have to do the right research, have the right partners, the right training and the right team. Keeping in mind that female-run businesses often face more hurdles when building their companies, it’s especially important to think about expansion with this type of due diligence in mind.  

With that said, here are 5 important steps that female leaders can take to take their businesses beyond domestic boundaries.

Create a Highly Trained International Business Team 

In business, people do not encourage ‘going it alone.’ Yes, there are stories of renegade disruptors straying from the pack and doing their own thing to much-lauded success, but the reality behind many of these solopreneurs and their companies is that they had excellent mentors, staff members and partners who helped them become the success stories that they are today.  

So, when it comes to business expansion, you need a team that understands how to:

• Research target markets effectively 
• Manage international finance and FX intricacies 
• Navigate the complex landscape of international shipping, logistics and transportation 
• Engage in appropriate cross-cultural marketing and sales 
• Adapt products and services to the many regulations in international markets 

This type of team can be comprised of many positions, depending on your company’s size, operational model and needs. Many international business consultants offer-up global trade experience for doing business in international regions, as do import-export consultants, trade compliance specialists, and procurement and purchasing experts—on a more granular level.  

Depending on the size and breadth of your team already, you may want to hire a specialist in a niche area, such as logistics, or you may need someone who can do it all, from researching the right global markets to executing the expansion strategy on a daily basis—like a seasoned international business consultant, developer or manager. 

Regardless of the position, what is exceptionally important for the success of your team is the amount of professional experience and training they have.

For example, many companies that are focused on international trade often look for the Certified International Trade Professional designation (CITP®|FIBP®*) when sourcing top talent.

That’s because CITPs have the knowledge and skills needed to provide services in all of the areas noted above (and more). This type of designation can be extremely beneficial as it provides your clients with added confidence that your team members understand the complexities involved in global expansion and, more importantly, know how to avoid common mistakes that untrained and inexperienced individuals so often make. Just as you need to do your due diligence for your business, your teams also need to be properly equipped to do the same in their areas of expertise. 

Execute a Thorough Feasibility Assessment 

If you are going to expand your business into new markets the right way, then you need to do the right type of research to see if the potential opportunities are viable for your business—both its current and future state. That means you need to:

• Assess your organizational readiness to take on international trade initiatives 
• Understand the best import or export opportunities for your business using the right types of data (such as macroeconomic data) 
• Perform cost-benefit analyses for all of your expansion activities  
• Understand how to mitigate the wealth of risks that can occur day by day in an ever-changing global economy 

These aren’t small tasks by any means, but that’s why adding the right professionals to your business is of utmost importance. They know how to do it all, so you don’t have to. 

Find the Right Partners 

When entering a new international market, partners can help establish effective marketing and distribution systems, region-specific market and consumer knowledge, and important government or regulatory connections that are necessary for successful expansion. However, there are many, many instances where not doing the right research and understanding your liabilities or partner’s liabilities can create disastrous situations for both parties. So, it’s important to understand what type of partnership you need first (distributor, agent, business association, business associate etc.), and then how to ensure you negotiate an agreement that will not only benefit your business but protect it during unexpected scenarios too.  

Establish Strong Female Support Networks  

Female leaders need other female leaders to thrive in today’s business environment. The WPO is just one of many organizations that understands the importance of this notion, creating a network of peer-to-peer support for women who seek advice, experience and resources from women who have succeeded at doing business or, in this specific case, international business. Not only do female support networks offer mentors, conferences, expert advice and opportunities that otherwise would be difficult for female-run businesses to attain on their own, but they also lift up female leadership and diversity initiatives on the whole—continuing an essential growth cycle for the women-led businesses of today and tomorrow. 

Dig for Initiatives, Resources and Funding Opportunities for Women  

At first glance, it can be daunting for women to find resources, financial assistance and business guidance when growing and expanding their businesses. But now, more than ever, the world is ripe with opportunities for women to take advantage of, especially in the form of diversity initiatives. For example, many government sectors in Canada, the US and Europe actively seek female-run companies for events, start-up and incubator programs, and supplier diversity programs.

Many large companies do too; in fact, 97% of Fortune 500 companies have supplier diversity programs, according to EDC.

It may take a bit of digging for the right help, but the investment in time is more than worth it. Better yet, if you have already established the right team and networks, you may not even have to look for these opportunities. People will bring them right to you. 

Going global shouldn’t be daunting. On the contrary, it is exciting and ripe with opportunities for large-scale success—especially if you have the right teams, partners, networks and resources at hand. Luckily, for those who are members of the WPO network, you’re already part of the way there. 

* Certified International Trade Professional (CITP) is trademarked for use within Canada. FITT International Business Professional (FIBP) is trademarked for use internationally. Both reflect the same FITT certified designation. 

2022 may be best summed up by the word “hybrid”. As the world largely moved on from lockdowns and social distancing, many workplaces moved on to hybrid models allowing their employees the flexibility to pivot with these changing times.

There were mass layoffs, and yet the hiring landscape remained competitive. Many of us, both personally and professionally, saw a “return to normal” while also navigating a continually challenging economic and business environment.

Similarly, FITT saw the continued value in offering flexibility, with an uptick in learners taking the FITTskills program through our educational partners in an in-class, instructor-led setting – while still seeing a large portion of learners progressing through the program through the self-led online option.

No matter how they earned their knowledge and experience in international business, an impressive number of individuals from a wide range of sectors, job roles, and organizations put in the work to achieve their professional goals by enhancing their skills and earning FITT credentials in 2022.

During the 2022 calendar year:

• 19,055 FITTskills courses and workshops were issued to learners
• 2,239 FITT digital badges were shared online
• 247 people achieved their FITT Certificate in International Trade, bringing the all-time total of FITT Certificate Holders to 7,362
• 359 people achieved their FITT Diploma in International Trade, bringing the all-time total of FITT Diploma Holders to 5,725
• 235 individuals achieved the CITP designation, bringing the all-time total of individuals who have been certified by FITT to 1,842

When FITTskills participants, graduates and CITP|FIBPs share their stories of why they took FITTskills training or took steps to earn FITT credentials, we get consistent feedback that reinforces the value of them to individuals at all stages of their careers – from students to CEOs.

For some, attending the in-class training led to valuable networking connections, mentorships and  business opportunities.

Many said the CITP designation gave them the confidence and credibility to go after their dream job, or land a new contract with a big client.

Others were looking to equip their teams with the specific skills and knowledge needed to successfully achieve their organization’s international business goals.

CITP earners represent diverse roles connected by common goals

In 2022 235 individuals were awarded the designation that stands as the symbol of both competency and credibility for global business professionals, bringing the all-time total of individual earners to 1,842.

This cohort of earners represents 200+ different organizations from small, medium, and large-sized companies in the private sector, government departments, regional export offices, and financial institutions – including:

Mustang Survival, ClimeCo, Gryd, Liveable Cities (LED Roadway Lighting), Vitalus Nutrition Inc, Arc’teryx, UPS, Newlook Eyewear, Lutron Electronics, Erickson Coaching International, Right at Home Realty Brokerage, Magna International, Delmar International, HSBC, RBC Royal Bank of Canada, Desjardins, Guaranty Trust Bank Limited, TD Canada Trust, Scotiabank, EDC, Global Affairs Canada, Canadian Commercial Corporation, Canadian Chamber of Commerce, the U.S. Commercial Service, The Turks and Caicos Island Government, Export Development Canada, and many more.

The breadth of sectors, business size, and job roles represented by CITPs are connected by the common thread of doing business beyond borders and proves the value of the designation for businesses trading internationally.

Every year we love to see the variety in roles that the latest cohort of CITPs inhabits. The group of earners from 2022 includes policy analysts, researchers, business development & sales managers, investment officers, loan service managers, customs brokers, procurement specialists, international business consultants, trade commissioners, marketing directors, border services officers and many others – from entry level to C-suite executives.

All of these professionals in sectors ranging from policy analysis to marketing and procurement see the importance of proving they have a thorough grasp of international trade processes, a commitment to global trade, and a dedication to ethical business practices and ongoing professional development.

More than a third of FITT Diploma earners went on to achieve the CITP

In 2022 an impressive 359 individuals earned the FITT Diploma in International Trade – a credential presented to individuals who have successfully completed the FITTskills program, through FITTskills online, through one of our educational partners, or through our portfolio submission process.

Earning the FITT Diploma meets the educational requirement for the CITP|FIBP designation for those applying through Pathway 1 (FITT Diploma Pathway).

We are thrilled to see 35% of 2022 diploma holders went on to earn the CITP designation. FITT Diploma earners have demonstrated their knowledge in each key category that, working together, complete international trade transactions.

This full picture of international trade prepares individuals to work effectively with colleagues and clients across the full spectrum of trade activities and sectors.

In 2022 there are more than 50 companies and 100 different job roles represented by FITT Diploma earners, from finance to customs, and large corporations (Home Depot, J.D. Irving Limited, BGRS, ATB Financial, Héroux-Devtek, and more), SMEs (Crank Software, Glenview Pharma, Fisher King Seafoods, Kelford Inc.) Government departments and regional trade offices (World Trade Centres, Toronto Region Board of Trade, STEP, Natural Resources Canada, Ontario Government, Caribbean Export Development Agency, and more) financial institutions, and many others.

FITT Certificate earners are continual learners

For those looking to begin or fill gaps in their international trade knowledge, earning the FITT Certificate in International Trade is a fantastic place to start. This credential is presented to individuals who’ve successfully completed any 3 FITTskills courses, or the equivalency thereof. Earning this certificate proves your knowledge in some of the key skills areas of global business.

In 2022 we proudly presented 247 individuals with this credential, from more than 60 different companies or organizations, and representing 80+ unique job roles. While earning the FITT Certificate is an accomplishment in itself, many didn’t stop there, with 46% of them going on to earn the FITT Diploma and 21% achieving the CITP designation in the same year.

The drive to grow and excel in their careers and businesses spurred 2022’s FITT credentials earners to gain valuable knowledge, skills and prestigious industry-recognized achievements.

We offer our heartfelt congratulations to all of the credential earners and celebrate their commitment to their international trade careers and professional development.

We are pleased to announce the inaugural Certification Council members recently appointed by the FITT Board.

Chair of Certification Council

As the Chair of the soon-to-be disbanded Certification and Accreditation Committee, Laura Dorling, CITP, is ensuring a smooth transition by remaining in her position as Chair of the Council.

Laura Dorling, CITP – Advisor for the Office of the Executive Director for Canada, Ireland and the Caribbean at the World Bank Group

“It’s a great honour to be appointed to the inaugural Certification Council with such an esteemed group of Council Members and to have the opportunity to support FITT as the global standard for international trade training and certification.”

In her role as Senior Advisor in the Office of the Executive Director for Canada, Ireland, and the Caribbean, she maintains Board-level responsibilities and helps shape and approve investments in developing countries financed by the World Bank, the International Finance Corporation, and the Multilateral Investment Guarantee Agency.

Laura also manages private sector engagement to promote procurement and investment opportunities in developing countries and leads on efforts to prioritize private capital mobilization across the World Bank Group to maximize financing for development.

Previously, Laura worked on operational teams at the World Bank across multiple geographic regions and represented Canada as a Senior Counsellor on the Board of Directors of the Inter-American Development Bank. Earlier in her career, she was a Team Leader and Trade Commissioner with the International Financing Division of Global Affairs Canada and an Export Consultant with the Ontario Ministry of Economic Development and Trade.

Laura is proud to be a Certified International Trade Professional (CITP) with a Master’s in E-Commerce and Bachelor of Commerce with Honours in International Management and Marketing.

“In an increasingly connected and competitive world, it’s an exciting time to build a strong community of international trade professionals with recognized competencies that can help advance careers and global business pursuits.”

Simon Gittens, CITP – Trade Commissioner, Ontario Regional Office, Global Affairs Canada

Simon Gittens is also a continual thread between the former Committee and is continuing his contribution as a member of the new Certification Council.

“I am honoured to be accepted on the Certification Council.”

Simon started with the Department of Foreign Affairs and International Trade (now Global Affairs Canada) in 1994 and since then has had ten different assignments within Canada’s National Capital Region. He has also participated in multiple international trade missions. Simon is currently a Trade Commissioner, Ontario Regional Office.

Simon is a graduate of the Toronto School of Business and completed the certificate of achievement through the Harvard School of Business Leadership Management Program. He was one of the first Canadian Trade Commissioners to achieve the CITP designation and has continued to maintain his designation for almost 20 years.

Lesley Hillier, CITP – Chief Global Strategy Officer of Thermtest Inc., and CEO of Archipelago Holdings (Ventures) Ltd.

Lesley Hillier is welcomed as the requisite representation from the FITT Board of Directors on the Council.

“I am happy to be part of the wonderful process of those serving and entering the profession of global trade.”

Lesley is the Chief Global Strategy Officer for Thermtest Inc. As a Certified International Trade Professional, she oversees the company’s global strategy and implementation of the international expansion into the U.S., Latin America, Europe, and Asia. She is integral in external relationships with financial institutions, legal counsel, government, and IP risk governance.

She is a CPA, MBA, CITP, and a graduate of the iGP Innovation Governance Program, Stanford University, The Emerging CFO: Strategic Financial Leadership Program, and the Rothman School of Management, FinTech program.

Dov Bercovici, CITP – President & CEO at Discovery Centre and Discover Centre International

Dov Bercovici has an impressive 30-year track record of success as a leader in four outstanding organizations: World Trade Centre, Acadia University, The Discovery Centre, and Discovery Centre International.

“I am thrilled to join the FITT Certification Council and help empower future generations of international business professionals for years to come!”

Dov is highly experienced in advancing STEM education internationally, establishing innovation centres, delivering on major community capital projects, fundraising campaigns and international trade development.

He is a four-time TOP 50 CEO in Atlantic Canada and an Honorary Life Member of the Canadian Association of Science Centres. Dov is also one of Canada’s Top 40 Under 40 Alumni and an economics and MBA graduate of McGill and Dalhousie universities. He is attracted to projects that empower young people with science savvy and make informal lifelong learning accessible for all global citizens.

Samantha Khoury, CITP – Investor Services Advisor for Québec at Invest in Canada

Samantha Khoury is the Investor Services Advisor for Québec at Invest in Canada since December 2020.

“I am delighted to be joining the Certification Council. It will be a pleasure to collaborate with the other Council members to participate in overseeing the certification program and, in turn, help ensure that the CITP|FIBP certification program is up to the highest accreditation standard.”

With over 10 years of experience in project management and consulting on three different continents and experience in both private and public sectors, Samantha is passionate about international business and partnerships, and has acquired a well-rounded vision of what is needed to be successful in global markets.

She has developed an expertise in innovation ecosystems as she is currently completing her Master of Administration in International Business at HEC Montréal and she holds a Bachelor of Commerce, majoring in International Business from Concordia University.

Kristian Kot, CITP – Global Trade Compliance Executive

A seasoned Trade Professional with 20+ years of experience in international trade, Kristian possesses expert knowledge of U.S. and Canadian trade regulations and export controls as well as theoretical and practical global trade expertise.

“I am excited to join this newly formed Council to provide my global perspectives and experience in international trade on behalf of FITT.”

Kristian started his career as a customs broker in Canada which led to a progression of executive roles, including a decade of working and living throughout the U.S. leading trade programs at organizations such as Dell and FaceBook-Meta.

Having spent time on both the client and service provider side uniquely positions Kristian as a well-rounded global trade subject matter expert. He currently resides in Victoria, BC, and is Six Sigma and CITP®|FIBP® certified.

Welcome to all members of the new Certification Council – we are thrilled to be working with such a talented, diverse and experienced group of CITPs as we embark on this new chapter at FITT.

The importance of building a resilient supply chain has become a top issue for businesses with international reach.

Businesses of all sizes have been affected all around the world, from Ikea’s empty warehouses to bare grocery store shelves. This has exposed vulnerabilities in global supply chains and value chains.

We’ve seen the increasing international fragmentation of production processes and also the changes that they’ve had on the structure of global trade overall.

Simultaneously, the trade pressures for companies engaged in international trade to build supply chains with full traceability and accountability for social and environmental impact continues to build.

Companies are currently challenged to make their global supply chains more resilient without weakening their competitiveness in the marketplace.

We teamed up with our partners at OWIT-Toronto to host a webinar to discuss how this can be achieved. In this recap article we’ll go through some practical steps that small businesses can take to respond and act upon today’s supply challenges.

And we’ll also talk through how to set up strong supplier relationships and mitigation plans that will help to prevent disruption and delays.

Moderator:

Rashpal Uppal-Assi, CITP – Manager, Procurement Services Division, Town of Stouffville

Rashpal is a seasoned professional with expertise in supply chain management, international business learning design, and academia spanning over 15 years in serving public, private and non-profit organizations. She also founded her own strategic management consulting firm, working primarily with small and medium sized businesses and serves on the boards of three trade organizations.

Panelists:

Amesika Baeta, CITP – District Manager, GTA West, Export Development Canada (EDC)

Amesika manages a team of eight locally engaged account managers who work directly with Canadian exporters to offer knowledge, financing and risk mitigation strategies. She has 14+ years of experience in international trade and a proud CITP.

Maryam Fouladirad – Founder & CEO, fundii

Maryam has a wealth of international trade and development experience in the Middle East, Europe and North America. She received her MBA in London. She has experience in management consulting in FinTech, and the food and beverage manufacturing industries as well as direct trade in the U.S. with focus on entrepreneurship.

Lora Rigutto, CITP – Loyalty and Engagement Manager, Forum for International Trade Training (FITT)

Lora started her international trade career working for a foreign office trade commission based in Toronto. She brings experience from the procurement side for Canadian companies that are looking to procure from overseas. She is also a proud Certified International Trade Professional (CITP).

Let’s start by talking about today’s international supply chain environment – what are some of the challenges to be aware of?

Maryam: One of the main issues we’ve noticed over the past couple of years is logistics disruption. The labor shortages, the lack of proper raw materials for the manufacturers, and delays as a result.

So that’s a chain that impacted from A to Z, the supply chain workflow around the world that impacted everyone from the manufacturers, to the freight forwarding companies, to both public and private sectors and at the end, the final consumers.

Amesika: The key challenges that companies have faced have been the cost of inputs. This increase has been devastating in terms of understanding how they can price the costs. The increase in cost of inputs onto their customers while not hitting company’s margins has been a real challenge for companies.

The cost of shipping and freight has gone up by, for some of our clients, three times, four times, where what used to be $5,000 to send the shipment is now $25,000, sometimes $50,000.

Inventory management has been very challenging for companies to manage throughout this time, keeping up with the increased demand at the beginning in 2020 and 2021.

And now in 2022 we’re entering a different stage of the pandemic, consumer spending has gone back down. As a result, companies are managing an overstock of inventory and have to figure out how to get rid of all this product while not taking a hit.

And we’re also seeing the cost of financing rise due to the interest rate hikes, which will also have a huge impact on companies as we enter into 2023.

For businesses that are setting up new resilient supply chains, or modifying their existing supply chains, where should they start building in that resiliency?

Maryam: I often recommend three suppliers in every single market you are active in. And then you can prioritize them. Who is number one for you, number two and number three in terms of different products and the quality enterprises they have. These are the important points in selecting your suppliers and in negotiation.

Amesika: It starts with creating an export plan and then having a backup plan, and then sometimes even having a backup plan to your backup plan.

Through the process of creating an export plan you’ll assess your company’s financial position, human capital, the production capacities. Having a plan in place will be a great foundational work to help them determine what your needs are.

If you don’t have a plan, we see a lot of companies will end up spending frivolously because there’s no roadmap for them to follow.

And before all else, I encourage you to really understand your cash flow, understand your costs and how you’re going to finance this. Your suppliers may ask you for payment terms. You have to get the cash flow to pay them up front. And then, depending on the payment terms you have with your clients, your clients may pay you in 30 days, 60 days, sometimes 90 days.

Before you engage in these relationships, it’s really important for you to know how much you can afford to pay your suppliers, and how long you can wait to be paid from your clients. And that is a key component to the successful implementation of a supply chain system for yourself.

Maryam: Get all the information you can from Export Development Canada and the Trade Commissioners Service and their reports, but I highly recommend that all the business owners, as either an entrepreneur or SME, do your own research as well because it will really give you a better understanding regarding the market you’re expanding to. This is my recommendation, having a really good understanding regarding the market, and what has changed during the past two to three years due to COVID 19.

How should small businesses in particular approach finding new international suppliers to create a more resilient supply chain?

Lora: Let’s say you want to procure from a market and find foreign suppliers. Sounds so easy, right? But the truth is that you need a roadmap to do that. You need to become strategic about sourcing and procurement.

And learning to navigate through some of those complexities is what FITT can really help you with. FITT’s Global Value Chain course gives you a comprehensive look at supply chain management.  There are different units within that course that teach you what to look for when you’re searching for foreign suppliers. How do you do a cost-benefit analysis? How do you really determine what you can afford to pay for those goods and inputs?

If you want to embark on this journey you often need to upskill yourself.

Or if you don’t have time to learn a new skill set yourself, set your team up with the needed training to have the skills within your business to be able to do a proper cost benefit analysis.

If you go in blindly, often areas are overlooked. And let’s say you start to procure from a foreign supplier, but you don’t do your due diligence because you don’t know what to look for. Those mistakes can be really, really costly.

Amesika: As a small business, you can’t be everything, right? Doing the analysis of where your gaps are as a business will empower you to know where you can go to get help. And don’t forget that you can also lean into your community.

Whether it’s with a trade association or other friends that you have, leverage the relationships around you to get referrals.

Often suppliers are found through referrals, by speaking with people, going to trade shows, asking where people find products.

If you find a supplier from a Google search, you don’t know much about them, there might not be much on their website. But you can ask them to produce references for companies that they’ve worked with.

If you don’t have the budget to fly there to see their actual production, that’s one way that you can get around that. But honestly, if you want to save yourself a lot of headaches down the road, fly there to meet the companies that you want to do business with.

I know for a lot of small businesses don’t have the resources to do that, but there is a program called CanExport that’s run through the Trade Commissioner Service. It’s a government grant program that helps subsidize the costs of small businesses that are looking at entering into certain markets around the world. I highly recommend you look into that program to help you subsidize some of those costs.

Maryam: One of the best sources that Canadian companies can use to find suppliers is to contact the commercial section of the embassy of that foreign country in based in Canada.

That’s their job exactly, much like trade commissioners, helping Canadian companies to find their suppliers. They can also help you in translation if there is some sort of a language barrier or cultural issue.

Let’s talk about negotiating with suppliers – what are some pointers you can give for negotiating payment terms and contract details with suppliers?

Maryam: It’s an art, we need to develop it.

It’s all about how we can actually create a win-win situation for both parties as a supplier and also as an importer.

There are a lot of resources out there that you’ll want to tap into regarding the cultural ethics, the how to negotiate with different countries, what is important for them. Building trust is crucial, and another reason why flying to meet them in person can be so important.

But face time, even in online meetings is a good way to build trust with them. Do the work in vetting the supplier – ask for samples, test them, check their payment terms.

Negotiation skills also get better with practice. It’s a skill that people can learn. There are a lot of resources available, from Youtube to major universities, that teach negotiation skills. I would suggest people just watch those videos, give it time, practice it, see the result.

Amesika: You have to remember at the end of the day, you have to look out for your own company. I would always say this to my clients when I was an account manager; if somebody is looking to put food on the table, whose table are they going to put food on? They’re going to worry about themselves.

The best way that you can protect yourself is to be educated as much as possible.

Get the expertise. If you don’t have the expertise in a certain area, educate yourself to empower yourself to make the right decisions. Get good legal advice too. Make sure your contracts are well structured from the beginning and very clear in terms of who’s responsible for what.

Lora: You need to have confidence to go into negotiations, whether you’re negotiating with a potential buyer for your product or negotiating with a supplier.

Partner with your logistics provider or your freight forwarder, they have the expertise. Before you agree to a price that has an Incoterm, understand what that Incoterm really means to you and your obligations as a buyer.

It all comes back to being prepared. In a negotiation, if they’re quoting a certain term or a certain price with an Incoterm, you could be in a position to say, it’s the first time I’m dealing with you as a supplier, I’m not comfortable with buying “FOB”.

Understanding what your comfort zone is and, and understanding the different types of Incoterms, it’s all part of the negotiation.

If you don’t have the answers, partner with somebody that knows more than you do. And don’t agree to anything that you’re, you’re not comfortable with. Be willing to negotiate and have your reasons for not accepting that price with that Incoterm.

How can a small business without the resources of a large corporation diversify and create a more resilient supply chain?

How can they mitigate any risks and avoid disruption for their customers?

Maryam: Make use of all the help and resources available to you from the TCS, EDC, Business Development Bank of Canada (BDC) and the embassies. Go to trade shows and build your network, build those relationships.

Another really good source regarding Incoterms and finding the best route is freight forwarders and shipping companies. They know everything regarding Incoterms and they can be really helpful for entrepreneurs.

Amesika: EDC provides risk mitigation strategies. If you’ve got a company that you’ve never done business with before that’s emailed you, you’re worried about giving them payment terms, whether it be net 15, net 30, net 60 day terms, even net 90 in some cases.

It can be really scary as a small business, especially when you’re starting out or you’re building a new relationship.

But the reality of getting paid up front is just not possible for a lot of companies. EDC does offer a variety of insurance solutions to cater to what your needs are, depending on how large you are, and depending on the size of your contract as well.

We have an online insurance solution called select credit insurance, where you can go online, apply for a credit limit through our system, we will do a credit check on that company and then advise you as to whether we can insure that company or not.

You can get a quote from us and then determine whether you want to pay for the insurance or not. And there’s no minimum size. This is ideal for companies who have the occasional order here or there, in a small amount. And it’s a way to educate yourself.

Lora: I’ve been mentoring a company with an e-commerce model for the past nine months. And their biggest issue was shipping costs. My recommendation to them was to actually reach out to the small business solutions division of their courier.

No company is too small to be engaging in international business and there are so many organizations with resources that want to help small businesses export.

Most couriers have a small business solutions department, and they understand the unique challenges of small businesses. They have the tools and resources and can provide guidance on how to avoid some of the risks of the particular products that are being shipped or the products that you’re trying to procure.

Amesika: The more informed that you are, the more you are empowered to make the appropriate decisions for your company.

Especially in this time, being agile is fundamental to the success of your business. You’re going to have to shift and change.

It goes right back to the importance of having a plan and then having a backup plan for that plan, and most likely be prepared to change that plan again in six months or even a year.