This year the CITP®|FIBP® designation reached a milestone 20^th anniversary, and as I was being interviewed for the CITP Connections Guide eBook as part of the celebrations, I realized that I was also celebrating my 5^th year of holding this prestigious international business designation.

As I look back to 2001, the first time I handled an international shipment, and then fast forward to my current position at Export Development Canada helping exporters with their trade-related questions, there are so many things to celebrate.

My experience growing professionally and academically

Throughout my career I was able to grow in two ways:  professionally and academically.  As I took my first steps in international business, I realized that having a few years of experience was not enough. I needed to learn and understand why it was so important to be involved in trade and how exports can make a difference in the development of any global economy.

I recognized the need to get specific practical training to give me the global business know-how I needed to take my career to the next level.

As I researched different programs of study, I found the FITTskills program through Seneca College’s part-time study option. The CITP designation was my main goal at that time and having a flexible option to study part-time was the best way for me to achieve it.

Learning all aspects of international trade and supply chain management allowed me to grow professionally in this field at a fast pace. I became an asset to the manufacturing company I was working for in Toronto at the time. They wanted to expand their business internationally and due to my work performance and supply chain and trade knowledge, I was asked to relocate to Mexico for three years to help train the team and implement the processes in customs, logistics and trade operations.

Although this delayed my progress in completing the program, this was an incredible experience that allowed me to grow within the company and learn through hands-on international work. As my assignment in Mexico began winding down, I completed my last few courses to finish the FITTskills program.

Emiliano with a group of his international students during his time as a global business instructor.

Today, I am proud to say that I’ve delivered international trade and supply chain management training to over 2,500 students and individuals through classroom and online courses. These individuals have been part of my career success, as I also learned from them through their engagement, curiosity, and passion for international business. The CITP designation allowed me to work with amazing staff and students at different academic institutions across the Ontario College system as faculty in their international trade and supply chain programs.

Applying my global trade know-how to help exporters grow

In 2012 I took on a new opportunity to work as a project funding officer with Canadian Manufacturers & Exporters (CME), Canada’s largest trade and industry association.  Through the Smart Program I learned how companies could implement export expansion through manufacturing projects that encourage investments in new equipment capabilities as well as job creation and increased global trade for Canada. My job was to support the manufacturers’ applications by ensuring they had solid export plans that were able to be implemented quickly.

This warranted that the provincial contributions towards these projects were going to companies that had the best chance to sustain the created jobs and get their products exported rapidly. The new capabilities, that more than 150 companies under my portfolio gained through this funding program, were the pillars to their export growth.

As I’ve learned through the FITTskills program, gaining new global customers needs to be supported with sufficient capacity and capabilities that can serve those new customers.

By becoming more competitive with the purchase of new equipment, those funded recipients were able to achieve and contribute to the overall export trade statistics that we always hear from the government.

Providing my opinions and analyses of the export plans developed through the Smart Program was always a big responsibility. But knowing that my know-how was backed up by my experience in the industry, and the process of earning my CITP designation, assured my managers that the money was allocated to the right companies.

Taking on new opportunities to support exporters from Peru to Vancouver

Emiliano (centre) with group of trainees at Prom Peru

After seeing that some companies weren’t eligible to receive funding due to a lack of export skills, CME decided to offer export training workshops across the country. Through different nation-wide organizations in the ecosystem, including BDC, EDC and the Trade Commissioner Service, I was able to deliver international trade courses and engage with over 1500 companies in the 18 months that the program was offered.

This program delivered training in major Canadian centres, including Toronto, Montreal, Calgary and Vancouver. As part of a partnership between FITT and EDC, I also travelled to Lima, where I was able to deliver the FITTskills training to employees of PromPeru, the government agency that promotes exports in Peru.

As my journey continues in the export ecosystem, I have recently joined the Export Help Team at Export Development Canada (EDC). Through this service Canadian companies looking to export (or currently exporting) can access trade-relevant information and have their questions answered by a team of experienced CITPs and other advisors and partners. The team responds with curated information that helps address their concerns and directs them to relevant export and trade resources.

During my time helping exporters at EDC, I’ve learned that companies are cautious when exploring new markets, and it is in their best interest to do enough research to secure a successful global expansion.

It’s great to know that at EDC, the Export Help team and other departments, can assist companies with trade knowledge, and also connect them with solutions that can mitigate their international risks.  Look for some of my upcoming blogs and webinars at EDC.Trade.

Success is not individual, but comes through relationships and partnerships

Throughout my career, I attribute my success to not only my own work, but countless individuals who I have been lucky to connect and work with over the years. Without the help and assistance of those in my dream teams, coworkers and leaders that cared enough about my career development, or that gave me  the opportunity to take on new challenges, many of my achievements could have not have materialized.

Keep in mind that you will meet key people in your life and at work. Managers, clients, peers at industry events, students or classmates, will allow you to succeed as they support your projects, businesses or knowledge.

To all of you who helped me through the years, I offer a big thank you, and look forward to fostering many more relationships as my career continues.

Organizations worldwide rely on their customers, so responding quickly and efficiently to the needs of those customers is the only way to continue growing and increasing profitability.

Without an efficient supply chain strategy in place, customers cannot be serviced properly and maximum profits cannot be achieved.

Putting a global supply chain strategy into place

Many global companies should operate by focusing on their core competencies. I formerly worked in the auto parts manufacturing industry for a company that focused on the production and engineering of brake parts and related accessories. Focusing on this core business was not only key for us as a supplier, but also benefited our clients. We were able to provide an array of products, and our customers were able to complete their procurement from a single source. This provided us an advantage over our competitors.

One way to establish a strategy to improve the way a company operates globally is by transforming the fundamental internal and external players in their supply chain.

Your internal players are the departments that are tightly linked to the logistics of your organization and your sales department, such as purchasing and procurement, production, quality and operations. External players include your clients, but also the suppliers of raw materials, transportation services and any other player in between your company and your end clients.

Altering process workflows of your internal and external players as a strategy can take a toll on a company, so it is important to implement these changes gradually to maximize their potential and avoid any delays in the global supply to customers.

Transformative strategies can be implemented by having a detailed and well-defined plan. It is important to prioritize activities and resources, as well as hiring and developing a strong supply chain team.

Why transform my supply chain?

Companies reformulate and transform their supply chain strategies to reinvent themselves, or to address a specific change in the industry for which the organization is unprepared.

During one of my international assignments, I organized a team of employees that was involved in the different aspects of the organization’s supply chain to introduce a new strategy that helped streamline many of the operations within the different departments. As this was happening in the Mexico facility, a team in Canada was also integrating these changes to better manage the processes across global locations.

The results of the project included the visibility of in-transit inventory, accountability of shippers and receivers, as well as the tracing of shipments from within the system.

Outside factors that can affect your supply chain

Nowadays, when companies commit to a major transformation, several different issues can affect their supply chain strategy, such as globalization, target markets, technology innovation and manufacturing processes.

It’s important to understand that each customer is different and a supply chain can’t always be defined in the same way.

One way to put this into perspective is to think of an international trade transaction between an American supplier shipping finished goods to Walmart Canada and Walmart China. These are two delivery destinations, even though they are the same client.

It is important to understand that making these changes doesn’t have to create a temporary slow-down in business activity.

Many international businesses implement new strategies while continuing to service their customers.

Incorporating new ideas or technologies, such as updating to a more robust WMS (warehouse management system) or implementing a new ERP (enterprise resource planning system) could potentially complicate a supply chain in the short term, but maintaining an agile environment and quickly responding to customers’ needs can lessen the impact overall.

Embarking on such changes enables companies to become pioneers in their industries and leading suppliers in their field, making their organization a front-runner when it comes to innovation in their supply chains.

Sometimes less is more when it comes to supply chain efficiency

One of the most important changes implemented to streamline the company I previously worked for was the reduction of freight forwarding service providers.

Looking at the different trade lanes, customers and suppliers, as well as our different distribution centres, the team was able to link and join routes that saved the organization time, and reduced the corporate freight bill.

Additionally, the freight forwarders that were chosen had to provide tools that helped improve customer service. Such tools included truck tracing software, and GPS accessibility via the web, which customer service representatives used to follow shipments during transit.

An effective development of supply chain strategy must answer a question: How will this new supply chain strategy benefit our processes and our customers’ experience once implemented?

Before answering this question, let’s review from the FITTskills Global Supply Chain Management textbook.

Supply Chain Strategy Development

Although methods for planning a supply chain strategy are not written in stone, there are three levels of analysis that should be considered when developing such strategies.

Level 1: Refine and confirm the business objectives that the supply chain must support. In order to plan for these objectives, it is important to consider:

• The economic environment
• Current regulations in the market
• Technological developments
• Cultural, demographic and infrastructural issues
• Competing organizations in the international marketplace

One of the best methods to address these factors is to perform a PEST analysis. PEST is an acronym for political, economic, social and technological factors of the external environment.

These issues are categorized as external factors beyond the control of the company, and might be pressures to the organization operations. To exemplify think how your supply chain strategy would be if you were to organize your international business with a politically unstable country.

Consider what type of supply chain would you have to implement when dealing with an area where there is a war going on. Performing a PEST analysis will one of the ways to come up with a strategy that can properly fit with your operation.

Level 2: Revision of current supply chain processes and assessments of how they match up to business requirements. In this level it is important to develop and evaluate the basic, high-level options for the supply chain implementation.

Organizations should scrutinize their supply chain and develop a high-level plan of how it operates.

The following are important areas to consider when preparing the plan:

• Network
• Processes
• Information systems
• Organization
• Risk management

Level 3: Include operational details to the basic supply chain design.

This is the last level and the most advanced in the planning and operational cycle. These details should include specific business practices and metrics such as lead times.

Many companies utilize the SCOR categories, which include source, make, deliver and return. These are important categories that will help identify all critical features of a supply chain. How will this new supply chain strategy benefit your processes and your customer experience once implemented?

Always take time to review your supply chain strategy

Although I won’t be able to answer specifically for each company, since there are many different strategies and each supply chain is unique, it is important that your team comes back to this question.

Ideally, come back to the above question each time a new customer is about to become a client. It’s important that your organization answers this question, and makes sure that the strategy implemented will work well for the company and its clients.

In today’s global market place, being aggressively competitive is key, and businesses with an international supply chain must improve their processes and efficiencies in order to maintain their market share and profits.

An efficient and highly strategic global supply chain is a major contributor to a business’ profitability, so implementing a supply chain transformation that will improve efficiency can set an organization apart from its industry competitors.

How do you make sure your company’s supply chain is working efficiently for you and your customers? Share your own experience!

Although I had already been working for a few years in the industry by then, these terms were a new area of international business to which I had not been exposed academically.

Walking my first steps into the world of Incoterms

When I started my career in supply chain and logistics, my first job was dealing with exports. The company I worked for manufactured car parts for aftermarket applications. Although my title was customer service, I had to wear several different hats, one of which had me preparing export documentation for a number of global accounts.

I kept seeing these Incoterms all over the documentation I was preparing for my customers, but I knew very little about what each of the terms really meant. This was not because I wasn’t interested in learning at that time, but because of time constrains during work hours.

Those of you working in manufacturing, logistics and supply chain know that this career is fast-paced. This is one of the main reason why I wanted to explore my educational options, and that’s how I ended up in the FITT-accredited program at Seneca.

Don’t mistake FOB for F.O.B.

Free on Board, or simply FOB, is a commonly used Incoterm. Unfortunately, it is also one of the terms that is most commonly confused. Let’s first discuss how it has been misused.

During my career, not only as a Certified International Trade Professional (CITP), but also as a faculty member teaching international business topics at different colleges, I have seen over and over how FOB is mistaken with F.O.B.

You might be wondering what and where the confusion originates. Back in the days when truck’s bills of lading used to be pre-printed, one of the fields to complete was ‘Freight on board’ or F.O.B. (note the periods in this acronym). This was particularly evident in shipments originating within North America, where the confusion between FOB and F.O.B. led to this misunderstanding.

Back in September 2010, I attended the International Chamber of Commerce (ICC) Incoterms train-the-trainer session in Chicago. One of the mandates from the ICC was to make sure that industry practitioners adopted the use of Incoterms 2010. Besides the reduction from thirteen terms to eleven terms, one of the biggest changes was the redefinition of the FOB term. It has now been revised and can only be used for ocean transportation.

Where the risk transfers from seller to buyer

The first statement when it comes to FOB references that “this rule is to be used only for sea or inland waterway transport” (ICC).  By utilizing FOB, the seller ships and “delivers the goods on board of the vessel nominated by the buyer at the named port of shipment” (ICC).

In plain language, this means the seller will contract a carrier to first move the goods from their warehouse and into the port facility.  Pre-carriage is basically pre-paid, and it includes costs such as the loading of the shipment into the vessel.

When I teach FOB to my students, I usually show an image of a crane collapsing and dropping a container into a vessel. Then, I ask, who is at risk in this situation when utilizing the term FOB?

Under this term, the delivery of the goods happens when the seller places the goods on board the vessel. This is the exact moment where risk has been transferred from the seller to the buyer.

Some frequently asked questions about Incoterms

Many of the following questions were asked to me by a group of my current students. Hopefully my answers will be able to clear up some areas of confusion for you as well!

Is it possible to amend an Incoterm to suit a special situation?

Although a contract has already been signed, usually amending an Incoterm is not recommended. However, this is how I have dealt in the past. I would price the order with the ‘amended’ Incoterm, and request that the buyer issue a new PO showing the new pricing and Incoterm to be used.

What is the difference between CIP and CIF?  What about the risk, costs and obligations for both parties?  Who pays the unloading fees under ‘C’ terms?

Both Incoterms allow the seller to handle the shipment from origin to place of destination. If the Incoterm used is CIF, the shipment will be arranged via ocean transportation. The seller arranges the shipment to arrive to a port of destination specified by the buyer.

One critical point in these two terms is that “risk passes and costs are transferred at different places” (ICC). Although the cost includes the pre-carriage and main carriage paid by the seller to destination, the risk passes from the seller to the buyer when the goods are delivered to the transportation carrier doing the “main carriage”. As an example, under CIF, this will be the actual vessel.

The buyer is always responsible for all unloading fees unless there is a special condition in the contract that states otherwise.

As a side note, it is important to understand what the ‘I’ in these two Incoterms means. Under CIP or CIF, the seller “contracts for insurance to cover against the buyer’s risk of loss of or damage to the goods during the carriage” (ICC). This means that the goods are insured from the seller’s warehouse to the destination place or port, where the main carriage ends.

Do we have to only use one kind of Incoterms during trade? Can we use two or more?

This is a question that I hear quite often.  An Incoterm will be negotiated and selected between a seller and a buyer. In that specific transaction, only one Incoterm is applicable. However, it is important to note that if we take a look at a global supply, there could be many Incoterms involved in a chain. This is due to the fact that there are many sellers and buyers. For each seller and buyer’s contract, there will be an Incoterm.

Why do Incoterms need revising periodically?

Incoterms were first published in 1936 and since then have been revised several times. These commercial terms are used by an industry that is constantly developing. Because of this progress and growth, revisions are necessary.

The ICC reviews current shipping practices and trends, and then amends a revision. The 2010 revision is the eighth amendment since the terms launched. One of the most important issues addressed in the latest revision was the necessity to include cargo security.

Get to know your Incoterms

The latest revision of the Incoterms 2010 book was published by the ICC and it describes in great detail the ICC rules for the use of domestic and international trade terms. Yes, you are reading this correctly, domestic and international trade terms. This was also one of the mandates by the ICC: to use the terms not only for the global transactions but also for those deemed local.

For Incoterms enthusiasts like myself, this book is like the bible for how trade should be conducted internationally.

Each of the terms and its rules are described in great details, and the book follows a structure that is easy to follow, read and understand.

If you have any specific question about Incoterms and how to properly use them, please reach out to me via Twitter, Facebook or LinkedIn. This topic is one the international themes I most enjoy, and I am always pleased to share my knowledge with the rest of the international trade community.

Helping international trade professionals with their CITP designation

As the part-time coordinator of the program at Seneca College, I often sit down with students and provide advice about the different career paths one might follow when doing business internationally. These career paths include trade finance, supply chain operations and customs administration. For a lot of the students, having a solid foundation in international trade skills is the key to succeeding in the workplace.  Being able to offer the FITT Academic Path to the CITP designation is one of the important components of the different programs we offer.

Many of my students are part-time students who attend classes after a busy workday.  These individuals could be upgrading their skills, refreshing their knowledge or completing some of our international trade and supply chain certificate programs. A handful of students also complete the FITT-accredited courses that meet the educational requirement for the Academic Path to the CITP designation offered by the Forum for International Trade Training. Seneca College is an accredited partner, and as such offers the accredited program required to obtain the FITT Diploma in International Trade, which is one component on the path to earning the CITP designation.

Bringing industry experience into the international business classroom

The valuable industry-experience of all our instructors is a fundamental component of our program. Not only do we focus on the theory of the program but also on the facilitators’ know-how as well as the students’ professional experience. I remember back in 2010, students were eager to hear all about my trip to Chicago where I attended the Incoterms training by the International Chamber of Commerce (ICC). Being able to share the new mandates and updates with the students created an illuminating classroom debate.  As a group, we were able to discuss many of the changes the ICC was introducing in the latest revision.

Working professionals in global companies always infuse the classroom with their ideas, company models and skill-filled theories drawn from years of experience in their positions. Many of our instructors, including myself, invite experts from different areas of the international trade industry.  I have invited expert speakers to my classrooms who have over 15 years of experience from different areas in global trade, including freight forwarders, customs brokers and export sales managers.  Their real life experiences and practical examples always have a positive impact in the way students approach the courses in international business.

One of my guest speakers shared with students how he got his break into the freight forwarding industry. Students were eager to ask the expert specific questions based on topics from previous classes, and also inquired about what employers in the industry look for when hiring new staff. The tips shared by our guest speaker enabled students to assess some of the current needs of the industry.

Inviting such experts throughout the program not only helps students to put required international business skills into context, but also show students that these competencies are important to success.

Upcoming FITT-accredited program at Seneca College.

The Faculty of Continuing Education and Training, Seneca College offers this program on a part-time basis through the year. Depending on the number of courses a student completes each semester, it is possible to complete a certificate in 1 to 2 years. All our international trade and supply chain FITT-accredited classes are offered on weeknights and are 14 weeks in length. Classes are offered at the Newnham Campus located at 1750 Finch Avenue East, Toronto, Ontario.

As a graduate of the program, and a successful industry expert in this field, I look forward to guiding you through the process and educational requirements, as I have with over 350 former students.

For additional information about the FITT-accredited international trade program offered at Seneca College, ask away here or contact me directly.

As an international trade professional as well as a FITTskills instructor, I’m often asked for tips to succeed in global trade. I’m going to share three tips that I think will help any serious international business student.

1) Being a hands-on individual from the early stages in your international trade career

Most jobs require that individuals start at an entry-level position. I always tell my students that taking an internship or a junior position is the best way to learn what international trade is all about.

One of the advantages of working in the international business field is the variety of jobs available. This diversity in the types of jobs is often overlooked. Most individuals will start with junior positions, and with such assignments comes the prospect of further career growth.

In order to fully understand trade compliance, individuals might wish to have a closer look at the world of customs. In the same manner, an entry-level traffic coordinator position can help one understand the importance of moving goods through the supply chain and across borders.

Having such practical knowledge can enable individuals to switch between different departments within a company if such possibility arises. These skills also make it easy for practitioners to market themselves to other employers.

Businesses usually look for a strong, solid educational foundation, but just as important, they value the different skill sets potential employees can bring into their organization.

2) Have a global perspective at every business stage

Individuals can easily forget that not having a global perspective can turn international trade transactions into sour deals.

The importance of paying attention in the early stages of a commercial negotiation, such as deciding on the correct Incoterm or suitable suppliers, can make a significant difference as products move along the global supply chain.

Using the wrong Incoterm might not necessarily impact a domestic contract, but it can definitely fast track a global deal into a money-losing transaction.

It may also be necessary to think globally while selecting suppliers. It may not be enough for businesses to rely solely on domestic suppliers. It is important to consider global suppliers that can easily be integrated into the supply chain. Adding these global suppliers requires a great deal of planning in terms of costs, timing and reliability of each of the new vendors.

3) Constant educational updates

If one is already in a comfortable international trade position, it is not a sign to rest on laurels and stop learning. Global trade is an area where changes in policies and law are frequent, and a student cannot stop learning once they receive their FITTskills Diploma or CITP designation. Being informed of what’s going on globally has to become second nature for individuals in this field. And this is why continually updating global trade skills is a necessity if you want to be successful in your career.

If you haven’t updated your skills in a while, start by researching part-time, continuing education programs in your area. Many of these programs are also offered online, such as FITTskills offered by KnowledgeOne (instructor-led) and via FITT and Scholarlab (self-led). I think one should also look for webinars, workshops and conferences, where you not only get to update your working knowledge but also network with fellow practitioners.

I also recommend that students become members of trade associations. These associations do a great job of keeping track of the most current communications between government entities, trade advisories and their industries. These associations frequently update their members on changes or special announcements. Members of such associations can also play a concerted active role in advocating changes in government policy.

These associations offer discounts on workshops and seminars, and sometimes special membership in different advisory panels that can provide wealth of knowledge to participants. Some of the associations out there include the Forum for International Trade Training, Canadian Manufacturers & Exporters, and Canadian International Freight Forwarders Association.

If you are an international trade professional or aspirant, I think you will find of great value for your career or for your employees an online class in Global Supply Chain Management I am conducting via KnowledgeOne starting June 23rd.  All KnowledgeOne courses run for 10 weeks. Have a look at the topics I will be discussing, and register here.

I’d like to hear from you any additional tips you have for success in international trade, and I hope to see you at one of my courses soon.