Johnny is a recent grad from Centennial College. He has taken a position with a local SME (small or medium enterprise) only a short transit ride from his home. Ex-impCan Enterprises Inc. is located on 941 Progress Avenue in Toronto. Ex-impCan is a wholesaler, importer and exporter of various types of consumer goods. The owner is finding that he needs someone to help him with the logistics of his business. He hired Johnny to bring new knowledge to help him get his products to the right place, at the right time, at the right price. Johnny has had some business experience in a retail store as a sales associate. His diploma included courses on Global Logistics and Customs Procedures. He is confident that he has the foundation to help his boss navigate the supply chain to offer suggestions on how make it leaner. The boss had always negotiated the trade deals himself. Starting from the price, method of payments and the logistics he controlled it all. He states \"I buy my goods the same ways with each of my suppliers, so I know how to get the best prices\". He reveals his method; the supplier will be paid half the invoice value in advance and the other half when the product is ready to ship. The invoice value includes all transportation costs and customs costs. Your boss only pays the total invoice value and his shipment arrives at his door. You ask your boss if you could look at the documents for a couple of the shipments, to get a \"feel\" of where the goods are shipped from. He provides the documents. You are familiar with most of the documents, due to your studies at Centennial, and start to analysis them. Your boss leaves the movement of the freight with the supplier and trusts that they will work in his, your boss, interests. Part 1 Questions 1) Who are the parties involved in an International Trade movement. How would you explain International Trade to your boss? 2) Who would you recommend to give you guidance and assistance in this matter? Why did you choose that party? Explain the process you used to determine how you found that party. Part 2 Johnny is discovering that when a shipment is being shipped, it is too late to change its routing. His boss advised him that there is a shipment of product, one pallet weighing 100kg that is being shipped by ocean (as per the vendor), and your customer needs the product within 10 days. Johnny thinks to himself, not a problem. Then your boss tells you the product is in China! You ask your boss, can you just not call the vendor and ensure it gets shipped today? Can it be that simple? Your boss tried calling Beijing with no success. If the shipment does not arrive at the customer's warehouse you may lose that customer. Now you remember in your studies, gateways and hubs were discussed and you wonder what role, if any, they play. Part 2 Questions 1) What trade route would an ocean shipment follow departing Beijing with arrival in Toronto? Include the expected transit time. Where did you find this information? 2) Based on the information you provided above what other route/gateway would you recommend? Why? Where did you obtain your information? 3) What could be a reason that the Boss could not \"connect\" with the supplier? Justify your answer and provide a solution. Part 3 As you await the outcome of the conversation between your boss and the vendor, you wonder, as your company sources new suppliers how should freight terms be negotiated? Incoterms is what you turn too. You know that properly understanding Incoterms will save you company money. In fact, the savings could help lower prices of your product and will contribute to sustaining competitiveness. Now you will have to discuss with your boss the concept of Incoterms. All of the companies import shipments are transported by ocean. From your studies you know that sometimes shipping by air is more effective and affordable. The key point is to understand how the Incoterms are applied. Your boss has finished his conversation with the supplier. He asks you for your suggestion of how to get the product to the customers store within the 10 days. You now see an opportunity to introduce Incoterms. Part 3 Questions 1) Based on the information provided in the case studies, which Incoterm term is presently being used? Justify your answer. 2) What two types of transfer take place? How would you explain it to your boss? 3) Which Incoterm would you suggest (based on the present freight movement) that should be examined to see if a more cost efficient freight rate can be obtain? Would you involve a freight forwarder? Why or why not? 4) What suggestion would you recommend to get the product to the customer in time? Include transit times in your answer. What is the Incoterm associated with your suggestion? 5) Your boss asks you to offer an opinion as to which Incoterm you would recommend be considered to be used in future negotiations? Explain your choice