This assignment encompasses three parts but it is the same case scenario. Consider all parts as they
were only one text. Act as you are a recent hired grad from Centennial College named Taylor. The
questions are addressed to you or Taylor (same person).
Submit to our course dropbox only the answers in MS-word or pdf format.
Reference of you research like “the internet”, “the book” will not be considered. If you feel the need you
can ask advice from an external source (don’t forget to mention it). Part 1
Taylor 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. B.O.B. (Bringing Our Best) Enterprises
Inc. is located on 941 Progress Avenue in Toronto. B.O.B. 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 Jim to bring new knowledge to help him get his products to the right
place, at the right time, at the right price.
Taylor 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 your
choose that party? Explain the process you used to determine how you found that party. Part 2
Taylor 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.
Taylor 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.
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.