Using International Logistics for Competitive Advantage

Using International Logistics for Competitive Advantage

International Logistics for Competitive Advantage Communication Challenges International English Special English Metric System Cultural Sensitivity Specific Advice

Communication Challenges • Effective communication is a challenge in international trade. • Most international communication takes place in English. • English is everybody’s “second language.” • Native speakers and non-native speakers have a particularly hard time communicating. • Most international communication is done in challenging conditions: over the phone, by fax or through e-mail. • Good communications build a competitive advantage.

Communication Challenges Classification of Languages in Terms of Difficulty to Learn for a Native English Speaker

International English Definition • A technique of written communication in the English language, developed by Edmond Weiss • It consists of removing all possible ambiguities, so that the communication can be understood by someone with a limited knowledge of English. • Using International English in written communications can help build a competitive advantage.

International English Rules of Good Written Communication • Always assume that the person for whom English is a second language is relying on a dictionary for some words; use the word with the clearest definition. Example • Do not write “The company’s sales took off 25 percent last year,” as “take off” is likely to be misunderstood. • Write “The company’s sales increased 25 percent last year.” • Identify which dictionary definition matches “increase” in the next slide; what is the first definition? Speculate as to what could be understood.

International English Take-Off entry in the dictionary:

International English Rules of Good Written Communication • Always proofread carefully and avoid all grammatical and spelling errors. Example • Do not write “The customer purchases products from Company A and it’s marketing services form Company B.” • Write “The customer purchases products from Company A and [its] marketing services from Company B.” • The original sentence could be understood as “The customer purchases products from Company A and (it is in the business of) marketing services for Company B.”

International English Rules of Good Written Communication • Always make sure that quantitative information will be understood without doubt. Example • Do not write “The patent was granted on 06/12/05.” • Write “The patent was granted on 12 June 2005.” • An American reader will understand the original 06/12/05 “correctly,” but a French reader will understand “6 December 2005” and a Chinese reader will understand “5 December 2006.”

International English Rules of Good Written Communication • Always use simple and short sentences, containing only one idea, and avoid all stylistic “shortcuts.” Example • Do not write “The company requests the report be sent early in the month.” • Write “The company requests that the report should be sent between the first and fifth day of the month,” although it may not be perfect grammatical English.

International English Rules of Good Written Communication • Never use idioms that are sport or military related, as they are rarely, if ever, understood properly. Example • Do not write “Our salespeople hit several home runs at the trade show last week.” • Write “Our salespeople had several substantial successes at the trade show last week.” • Consider that a “home run” is a “hit in baseball that enables the batter to make a complete circuit of the bases and score a run,” and speculate on what the foreign recipient of this e-mail will understand

Special English Definition • A technique of oral communication in the English language, developed by the Voice of America. • It is designed so that the oral communication can be understood by someone with a limited knowledge of English. • Using Special English in phone conversations and in-person conversations can help build a competitive advantage.

Special English Rules of Special English • Sentences should be short and contain only one idea. Example • Do not say “We did not yet get delivery of this shipment because our freight forwarder told us that Customs was waiting for a document that our bank had not released.” • Say “We did not get delivery of the shipment. There is a problem with a document. Our bank has not released the document to Customs. We learned this information from our freight forwarder,” although the last sentence is probably unnecessary.

Special English Rules of Special English • The vocabulary should be limited to correct and accurate terms. Example • Do not say “We will call you tomorrow, irregardless, about the amount of boxes that we did not receive.” • Say “We will call you tomorrow about the number of boxes that we did not receive.” * * “Amount” is a word used for non-countable items (sand, money, etc.: we cannot say 1 sand, 2 sands, ...) and “number is the correct word for countable items (1 box, 2 boxes, ...). “Irregardless” is a non-existent word

Special English Rules of Special English • The speed at which the sentences are spoken should be slower. Example • Do not speak at a normal conversational rate. • Speak as slowly as you can possibly handle, enunciate every word of every sentence and make every word “distinct” from the others; a good reference would be to think of a teacher dictating to his/her students, but without the long pauses of a dictation.

Special English Rules of Special English • If a foreigner asks a native speaker to repeat a sentence, do not repeat it louder. • The native speaker should repeat the sentence using slightly different vocabulary or repeat the sentence and offer an alternative word. Example • Suppose “Our company would like to sleep on that proposal for a few days,” is not understood. • Repeat “Our company would like to sleep on that proposal – think about it – for a few days.”

Metric System Definition • A decimal measuring system developed in the late eighteenth century • Since the 1960s, it is officially known as the International System of Units (abbreviated SI, due to its French name, the Système International d'Unités). • It is widely adopted worldwide (the only system of measurement for many countries), but not commonly used in the United States. • Using the Metric System in all transactions will build a competitive advantage over U.S. competitors, but will only close the competitive disadvantage with other foreign competitors.

Metric System Rules for using the Metric System • It should be the only system used in international transactions. • Few foreigners understand the intricacies of the U.S. system of measurements. Example • Do not offer to sell items in cartons of 24 retail boxes, each being 8 ounces in size. • A foreigner looking up “ounces” will find that there are at least five different types of ounces in the U.S. system, and will not know which was used.

Metric System Rules for using the Metric System • The simple conversion of U.S. units into metric units is not appropriate; the translation of a “round” number of U.S. units into an odd number of metric units is not useful. • Use “round” numbers of metric units. Example • Do not sell items in 3.785-liter containers (1 U.S. gallon). • Sell items in 1- or 2-liter containers, which is what the foreigner can understand (and its customers).

Cultural Sensitivity Intercultural Communication Points • Learn the way people address each other in person, in the mail or over the telephone and the level of formality that such interactions necessitate. • Understand the work culture of a country. • Recognize that there are culturally determined differences in the way people respond to requests. • Learn the ways in which people spend their workday.

Specific Advice • A company can obtain a strategic advantage over its competitors by making customer-driven decisions: • By being flexible in the choice of Incoterm in a particular transaction • By offering terms of payment that are favorable to the customer, while protecting itself from the risk of default • By choosing a currency of payment that is convenient to the importer, while hedging its transaction exposure • By being very careful and diligent in its document preparation • By using appropriate and thoughtful packaging alternatives

Using International Logistics for Competitive Advantage