Benchmark Magazine

A Word From The DeandEANsTEVE hARVEY On behalf of the John Molson School of Steve Harvey, PhD Business, I would like to welcome you Dean, John Molson to the John Molson Startup Confer- School of Business ence. In keeping with JMSB’s commitment to experiential learning, this initiative embodies the notion that there is valuable learning that occurs outside of the classroom at the univer- sity. The multi-disciplinary nature of the con- ference is more than just a reflection of how modern businesses function – it is also a rec- ognition of the fact that for innovation to truly flourish, today’s students, tomorrow’s leaders, need to learn how to work together, across all disciplines. Concordia University is proud to of- fer an environment where this type of growth and innovation can thrive.

Table of ContentsCONFERENCE TOOLKIT BTM/SCOM04 EVENT PROGRAMME 15 STARTUP TOOLKIT 26 JSBA about us06 IDEA GENERATION 17 WHY AMAZING HAPPENS M29AEP PPTaTIOsEHtNCoEWrHyGPtEoOmTRWaEkEeOCRyFoHuOr F MAPPIN G07 MARKET SEGMENTATION importance of leadership with a purpose08 BUSINESS DEVELOPEMENT pitch pop09 ICE BREAKER PITCH T1 8OSRdMPToIeAPETs SpCIRrTaTHcEtCTiRceHHmTEaHkeEEpeELrfLeEcEtV?V AAT-O R 20 WEBS TOOLKIT A30SESAEIAMD>SEBSAELDM>YEBSDLYIEGSINGN>> a story to make your pitch pop 22 NETWORKING A31RGTISSaLTsOuIGcCcIeSsSsTsItACorSyNADND ARTS11 PRODUCT EXPO at the front line of your startup13 ELEVATOR PITCH DEMYSTIFYING THE 2C U4 RRTOEIHYOESFSTWOEURORTRYLYDOIUS RY O U R private event brought to you by Heddoko 33MYSthSOeTiUnsITaFHndYEoRIutNNs oIGfAbIrAaNzNilTiTan logistics 25 SEVEN ESSENTIAL STEPS 38 THANK YOU to setup your startup

9:00 REGISTRATION10:00 SPEAKER PANEL 1 Idea Generation11:0011:15 SOLVING A PSYCHOLOGY BUILDING A12:00 PROBLEM IN A STARTUP PRODUCT12:15 SPEAKER PANEL 2 Market Segmentation13:0013:15 CUSTOMER CUSTOMERS' SHAMELESS13:45 VAL & ACQ NEEDS & WANTS STORYTELLING14:00 LUNCH PRODUCT15:00 ICE BREAKER PITCH EXPO15:45 District 3 Tradeshow

16:00 SPEAKER PANEL 3 PRODUCT Bus. Developement EXPO16:45 Tradeshow17:00 MOBILE APP PROTECT HOW TO PITCH DEVELOPEMENT YOUR IP TO A VC17:30 BREAK18:0018:15 ELEVATOR PITCH SPEAKER PANEL 4Int'l Expansion COMP Private19:00 Event19:30 DISRUPTIVE MARKETS Keynote20:00 COCKTAIL22:00

Idea Generation PANEL 1 Jonathan Lavoie-Levesque, Product Lead Jonathan will share with us the story of Shopify. He believes that ideas are both worth- less and valuable, and will make you question whether your idea is worth building. It’s important to know what steps to take after your Eureka moment. The panel also discusses how to handle failure “the right way.” WORKSHOP 1 Daniel Schacter, cofounder & CEO Daniel has a lot of experience in problem solving. Whether your company is small or large, the workshop will begin by covering the different kinds of problems they all face. Following that, he will go over the 7 steps to Mckinsey problem-solving and what they are. You will come to find out that it is a famous framework that cannot be applied to startups. WORKSHOP 2 Mazen Elbawab, founder & CEO The award-winning Mazen will help you build your product from scratch. He will be- gin by focusing on building hardware products by applying a semi-lean methodology. Emphasis will be put on the differences between building a software product vs. a hardware/consumer electronic product. WORKSHOP 3 Benjamin Syne, cofounder & CEO Every stage in a startup can be challenging on your mind. Come learn about the role your subconscious mind plays during it all and how you can harness some of those fears that come with starting a startup and use it to your advantage. Keeping a strong mind and never shaking from your vision will help you get through times when you may be low in capital and support from your end consumers.

Market Segmentation PANEL 1 Francis Davidson, co-founder & CEO Francis will discuss how building a startup requires influencing people to act in theinterests of your startup. The effective way to do this is by making it apparent to them that you are creating a lot of value for them. If at every single touch point, you aren’tthinking about your interlocutor's needs, desires and unknown wants, you won't push them to act. WORKSHOP 1 Caithrin Rintoul, co-founder & CEO Caithrin is a young food fanatic that is transforming the marketplace of fresh food from farm to fork. He will talk to us about focusing our efforts on controlling user growth. Topics that will be covered: comparisons between “MVP” acquisition and scale acquisition, introduction to early adopters and the bell curve in influencers. WORKSHOP 2 Jeff Dungen, co-founder & CEOYour competitors have better visibility, better media connections and better market- ing. Nonetheless, you're convinced that you have a better product or service. Yourcustomers and fans want to get behind you and your story. In this workshop, you willlearn how to craft and tell your unique and engaging story to punch well above your weight. This is a workshop about storytelling, which will involve a lot of storytelling. WORKSHOP 3 Frédéric Chènevert, co-founder & CEO In a world of over saturation, it seems as if everything has been done already. Don't bother copying your competitor to grasp those margins. Make sure you truly know what your target market’s wants and needs are so that your product or service can sell itself. 7

Business Developement WORKSHOP 1 Sylvain Carle, Partner Sylvain will take you through the steps required to prepare the perfect pitch to get funded. From the storytelling, to your target market and competitors, there is a lot an investor is looking for before handing you that fat cheque. WORKSHOP 2 Steven Bento, Lawyer Steven Bento and Justin Freedin of the Intellectual Property law firm ROBIC will enter- tain you with a short workshop on the basics of Intellectual Property, such as trade- marks, copyrights, patents and trade secrets. They will help you develop a strong pat- ent strategy that will allow you to identify which of your works need legal protection, and what’s more, point you to the legal tools available to help protect your startup from competitors. WORKSHOP 3 Antoine Azar, CEO In this interactive workshop, Antoine Azar, CEO and founder of Mobilogie will share the stories and strategies of multiple entrepreneurs Mobilogie worked with that man- aged to successfully build amazing companies. Learn how to maximize every dollar when it counts, find the right partners, sell before you build, and raise money on the right terms. PANEL 4 Pierrich Picard, VP Business Development Pierrich will teach us how to choose and prioritize our markets while informing us on who can help your business expand quicker. Later on he will discuss about how to build an international business development team and discuss how to do business with various cultures.

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PROTECT YOUR IP

Elevator Pitch 13Competition The elevator pitch competition is a unique opportunity for students to pitch their business to industry professionals. We have invited three professionals that work on building early-stage companies to help our student entrepre- neurs accelerate their way to success. These judges will provide feedback to the companies in order to guide them towards the right direction. The winning team will receive a surprise prize and will get to sit down with the professionals individu- ally to work on their business model. Meet the Judges Katherine Korakakis Matthew Smith Maryse Gingras Program manager Partner & COO Regional Director TandemLaunch Futurepreneur QcProMontreal Entrepreneurs 13







Why AMAZING HappensThe importance of leadership with a purpose-- Tak Chung 17Have you ever stepped into a store expecting to The best part is anyone in the organization can be a be greeted by bland sales staff, only to be sur- leader, whether a CEO or stock boy. Authority figures prised by an amazing team of people who look lead with the promise of a pay check and monetary in-happy and want to be there? This scenario is uncommon centives.in the slew of dozens of stores we visit in a month. Itdoesn’t have to be, though. Great leaders lead with a sense of purpose and a foun- dation of trust. One we will work for from 9 to 5; the oth-A great leader inspires action, says Simon Sinek, the au- er we stay for and work through blood, sweat and tears.thor of Start With Why. A leader communicates their pur-pose, cause or belief through their actions. The purpose, Next time you walk into your favourite store, stop andcause or belief goes beyond shareholders and profits and take note of the amazing staff around you. Find the lead-answers WHY a company or group exists. It manifests as er in the team, ask why they work there, and prepare toa consistent guide that gives the leader direction. In turn, be inspired.we follow the leader because we want to, not becausewe have to. 17

Master the Elevator PitchMaster The Elevator PitchDoes practice really make perfect? Does practice really make perfect? -- Tak Chung You’re standing on stage in front of hundreds of conference attendees. You can deliver your unique value proposition flawlessly and know your customer segments inside out. Your revenue model is solid and competition has been identified. Logically, you should be ready to reveal your elevator pitch. As you dic- tate your well-rehearsed speech, it falls onto deaf ears. Where did you go wrong?1. Know Your AudienceThe purpose of an elevator pitch is to garner interest toignite a conversation, but two people are needed to starta discussion: you and your audience. While you may beexcited for your idea, keep in mind one simple question:what’s in it for them? VCs, friends, family, and the gen-eral public come from various backgrounds and may un-derstand your idea differently. Tailor your message to getthem on the same page. 2. Engage Your Audience3. Keep It Simple Now that you know your audience, treat the crowd as a part of your presentation by talking to them, not atSimplify abstract concepts through analo- them. Ask questions to inject curiosity and draw themgies or images they can see, touch or feel. in. “By a show of hands, who here has ridden a bicy-Bouncing electrons is easier to visualize as cle?” You can also follow up with a story to hold their at-children jumping on a trampoline. Likewise, tention. “Imagine you’re riding a bicycle, and suddenlyfive hundred acres of farmland can be hard you run out of water.” Now you’ve got them hooked.to picture until compared to the size of ParcJean-Drapeau. A Powerpoint slide with a pic-ture of a woman swimming in muddy waterconveys more meaning than several bulletpoints on pollution. Abstract is forgotten;simple is unforgettable.

4. Prepare The UnexpectedPatterns help us understand the world around us. Natural-ly we stop paying attention to them until patterns changeabruptly. Pull in your audience’s attention by introducingan element of surprise. One way is to recite a well knownfact and challenge it. “We all know practice makes perfect,but can perfection come from practicing the wrong way orworse, the wrong thing?” 5. Appeal To Emotions Emotions are powerful. We identify more with passion, happiness, fear and loneliness than with facts, statistics and percentages. Channel the ap- propriate emotion by describing a single person as an example. The suffering of an individual is easier to sympathize with than the suffering of a faceless group. Can’t find an example? Dig into your testimonials for a motivational or inspirational story.A memorable elevator pitch is one your audience canrecite days after you leave the stage. Connect with youraudience to get them talking and soon your ideas will sellthemselves.

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NetworkingAt the front line of your startup-- Claudia Lingat Email 23Imagine this: you scribble your idea on a cocktail nap- Email is a no-fail approach to efficient networking kin and feel excited about starting a business - your because you have nothing to lose. Express your ap- startup! You take the time to thoroughly plan and re- preciation of the individual’s expertise and quicklysearch your idea, jotting down the skeleton of your busi- explain the value of their feedback to your busi-ness proposal. That entrepreneurial fire burns through ness. Ask for 20 minutes of their time, either in aas you elaborate an action map. response, a phone call, or an in person meeting.I have gotten to this point so many times. For me, get- Eventsting the idea and imagining the possibilities was theeasy part. It was putting an idea into execution that was Attend gatherings in your area of interest. Engange andintimidating as a young professional. One day I got the be prepared before arrival. Look through the guest listadvice I needed: “I didn’t do it alone, and neither can and do some background research. Keep taking notes,you”. This was my “AHA!” moment. I needed support, collect business cards, and follow-up. Start a networkingexperienced resources, and information. If you are like I notebook: glue in cards and jot down important informa-was, networking is the key to your startup. It will become tion.your ultimate asset.Look AroundAs startups, we have limited resources. Personal relation- As I preach on networking, I wouldn’t be credible with-ships will enable your idea to go from seed to sprout at out my own call to action – reach out to me on LinkedIn. Ino cost. You have people all around you. Start asking am a young professional, a startup enthusiast, and I wantwhat people do and what they specialize in. Take notes, to exchange knowledge and ideas with you!and exploit every bit of information. Write down theirnames, what they shared, and reach back out for moreas you need it. Your own personal network can be veryresourceful.The InternetDon’t be afraid to engage in intelligent conversationswith people you identify as relevant to your idea on so-cial media. People enjoy helping a young startup succeedand being that resource. Seek out people who've trod-den your path before. LinkedIn has a search bar, use it! 23



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JS BA Message from the OrganizersWe, John Molson Supply Chain and Business Technology Association, would like to wish you a warm welcome to thefirst edition of the John Molson Startup Conference! Over the course of the last 8 months, JSBA has worked to createa conference that will deliver both exciting and engaging to content fit for a diverse audience of students and indus-try professionals. At the core of this conference, is the need to address two emerging trends in the entrepreneurialworld.More and more young professionals are opting out of the 9-5-job life in favour of a more flexible and idea-drivencareer with tangible freedom for expression. Moreover, Montreal is making its name on the world stage as a breed-ing ground for high potential start ups. The recent success of local companies such as BusBud and Jintronix Inc areproven indicators of the city’s track record of small business success. On that note, the organizing committee wouldlike to wish you a warm welcome to the John Molson Startup Conference.Dream. Build. Launch.

About JSBAThe John Molson Supply Chain and Business Tech- About the disciplines 27 nology Association (JSBA) is the newest subsidiary under CASA. Formerly known as the Decision Sci- In today’s global economy, companies spend bil-ences Student Association (DSSA) in 2013, the associa- lions of dollars in procurement, transportation,tion underwent a name change in April 2014 and is cur- manufacturing, distribution and finally meetingrently re-branding. customer’s product/service needs. These supply chain processes are extensive and span acrossThe association’s executives dedicate their time towards companies and continents around the globe.hosting an array of networking and community eventsto enrich the learning experience here at the John Supply Chain Operations Management (SCOM)Molson School of Business and help to bridge the gap is all about the coordination and integration ofbetween students, professors, and employers. These these entities via system-wide thinking. The pro-events include company tours, workshops, recruitment gram aims to develop well-rounded business lead-cocktails, speaker conferences, and competitions. The ers with proficiency in both problem solving andJSBA mission is to encourage students to consider Sup- change management leadership, which are skillsply Chain Operations Management and/or Business suited in a wide variety of industries, including con-Technology Management as a core discipline of study. sulting, manufacturing, retail, logistics, distributionWith the support from our sponsors, partners and fac- and software.ulty, we strive to improve the quality of our education. Business Technology Management (BTM) is the useEvents of information technology to improve organiza- tional performance and individual quality of work• LinkedIn Photoshoot: It's Time to Suit Up life. The BTM Co-op program puts emphasiso on• JSBA Meet & Greet teaching the student the ability to identify business• FREE breakfast with Allo Mon Coco tasks and their information needs. It also provides• JSBA Par-Tee #WhosYourCaddy project management, interpersonal communica-• JSBA presents: A Numbers Game at #JMSM14 tion skills, and a solid knowledge of information• JSBA's Annual Santa Supply Chain technology that is necessary to propose effective• Mega Brands Company Tour information systems solutions to given business• BTM Recruitment & Info Sessions problems.• Aéroports de Montréal Tour• Excel Workshops• CN Company Tour• Agropur Recruitment & Info Session• mnubo information & recruitment session• L'Oréal Company Tour 27

The Power of Mapping Technologies-- Feras El BashaAmap used to convey information such as; land- Did you know that BlindSquare is an app that uses Four- scapes, political boundaries, railway lines and square data to help blind people get around the city? streets on a sheet of paper, limited in scope Rona Oja is 21 years old and she likes skating. Her beingand scale. Today a map is a living thing, breathing in blind caused her to get lost sometimes in the streets ofyour computers and smartphones. Digital maps carry Helsinki. Now when she shakes her smartphone, Blind-layers of data; from traffic conditions to real time elec- Square tells her the nearest street names she needs totion results. The collection, processing and sharing get her back on track. BlindSquare’s most importantof all this real time data is powered by location based functions can be accessed with a audio menu, compat-services (LBS). In 2000, the world’s 12 largest telecom ible with Apple’s IOS. The visually impaired are nowoperators constituted the first Mobile Location Protocol; safe to travel independently in today’s society. Clearly,an interface that instruments connection between the Foursquare and the like, will be inevitable to encountertelecom network and LBS applications. After this mar- in daily lives thanks to increasing dependence on per-riage information became a service. How? Ask yourself, sonal mobility. Pyramid Research predicts that “Globalwhen is the last time you used Foursquare to \"Check revenue for the LBS market is expected to reach US$10.3in\" at venues? How happy were you, when you found billion in 2015… up from $2.8 billion in 2010.” This isthe nearest ATM or metro station to you? Is it a coin- exciting but the heart of the matter lies in your privacy.cidence that you see an advertisement of a restaurantas you pass by it? That said, LBS virtually makes sense RDealtaataionndsPhirpivacy: A Love Hateof the world around us and has uses in social network-ing, healthcare, commerce and entertainment services.Foursquare and BlindSqaure: One Tree, How can we enjoy the benefits of LBS and be assuredTwo Fruits that our data does not fall in the wrong hands? The an- swer to the question is not only by imposing laws, likeOn a surface level, Foursquare with over 55 million users the Protect Intellectual Property Act in the US, but fur-worldwide, is a web based social networking mobile app ther impose restrictions on limits for data collection, pro-that enables people to share common interests in; res- cessing and sharing. For example, LBS should collect thetaurants, malls or places in a broader sense. The about bare minimum data to provide the service. There shouldpage of Foursquare states that the app does more by, be an option allowing users not to permit their data to\"Foursquare learns what you like and leads you to place be used by third parties and the time their data could beyou’ll love… based on your tastes, ratings for similar stored in the service providers' servers. For now, ben-place, and the friends and experts you trust most”. On efits and consequences of LBS are in the mist.a deeper level, data collected from users is used by vari-ous players. Just visit foursquare.com/business for in-formation on how your business can use their tools toengage with customers.

Idea > Design > Assembly-- Adrien NéretIt hasn’t been easy, but Peter Desjardins’ dream to How it moves make the world’s most advanced remote camera head is finally coming together- literally. A self-taught To create the intricate interior mouvement, Desjardinsengineer and tinkerer at heart, Desjardins designed and designed the parts in SolidWorks to produce a CADbuilt the entire product, dubbed the VT-1, from his re- (computer aided design) file. He sourced the parts frommote home in the peaceful upper Laurentians. The ide- suppliers like MISUMI. Gears, stepper motors, bearingsation process started when Desjardins realized there was and the likes are all within a few clicks, even those witha real need for more automated equipment in high-risk customs specifications.and low-accessibility photography. For the past 10 years,he has worked on making a head that offers precise re- How it looksmote movement control on all axis, and that can inter-face today’s high-end cameras used in broadcasting and To hold everything together, Desjardins conceived thefilm production. Without any specialized equipment, ev- casing for the VT-1 with 3D modeling software. Customerything was possible with an Internet connection, cou- electronic enclosures manufacturer Protocase producedrier service and a lot of passion. Through many product the sheet metal casing within three days from the CADiterations, here’s how the project came together. file. They even provide design assistance and free model- ing software.How it thinks What’s important is not to have the next big idea; it’s toControlling the latest cinema HD, 2K and 4K cameras have a good one. Now entering the final design stage, therequired complex custom software and custom printed next step for the VT-1 is to perform field-testing. It caterscircuit boards (PCBs) for the precise interface the VT-1 to a niche market, but one with a real need. The capa-offers. Desjardins designed every board using software bilities of specialized manufacturing are being democra-like DipTrace. A number of companies offer custom PCB tized; nearly anyone can do anything. Passion, interestmanufacturing, such as Gold Phoenix. Desjardins then and the Internet bridge the gap from idea to reality.assembled the boards, that is, soldered all the electroniccomponents, ordered from online suppliers like Digi-Key. 29

Logistics & Art: A Success StoryA behind-the-scenes look at museum logistics-- Tatjana Knorr & Natasha Kapoor How does one move 6000 years of history from 21 Greek museums to Montreal? This is a question that our very own Pointe-à-Callière Museum faced a year ago. We seldom think about how art travels to our doorstep from nations we have never been to, yet this is a daily challenge museums face with every travelling exhibit. From blockbusters such as Chihuly’s glass structures to Van Gogh’s light-sensitive paintings, extensive care and planning help to bring these works in pristine condition. Where do we start to tackle such a logistical problem?

To begin, museums interested in another mu- Insurance seum's exhibition apply for loan requests a year in advance of their planned exhibition. Loan re- Surveillance systems cannot guarantee total preventionquests then are approved by the curatorial department of art theft. This is why inter-museum loans are entirelyonly if the objects are available and suitable for trans- covered by written contracts regulating the responsibili-port. Upon the approval, the lending museum provides ties of the involved museums such as getting insurance.documentation regarding security measures and mount- Increasing volumes of art shipments have lead to arting requirements and the borrowing museum arranges insurance companies like AXA ART to emerge. In 1989,and covers the costs for packaging, transportation and 45 drawings from the Andy Warhol Foundation wentinsurance. missing while on loan to the MoMA. A settlement was reached with a generous check of $1 million issued byPackaging the museum's insurance broker to the foundation.Art objects need to be wrapped before their journey. Once the shipment arrives, it rests in its transportationObjects are padded in material such as bubble-wrap or cases to adjust to the temperature and humidity of thefoam cushioning for short distances or placed in crates museum. If minor decorative finishes are needed, theyto prevent shocks, temperature and humidity for long can be performed by the conservator of the museum.distances. PH-neutral materials prevent artifacts from However, it is important that these changes are revers-altering, changing or losing their color or other physical ible.characteristics. Bringing these artistic masterpieces to you is no easyTransportation task. Thankfully, museums do all the heavy lifting so that you can stand and gaze at the noteworthy bodies of workThe size, timeliness of the shipment and transportation at your local exhibit.cost determine the mode of transportation. Museumsusually truck artwork to a railway station, sea- or airport,where goods are loaded for the main leg of the trip. Ship-ments via rail is suitable for short distances, though mayhave long lead times. Ocean freight is chosen for com-plex and bulky sculptures that cannot be disassembledfor transport. The most costly mode of transportationis air freight, which allows great flexibility for last minutechanges and is suitable for time critical shipments. 31

Demystifying the Southern GiantThe Ins and Outs of Brazilian Logistics-- Marianne Springmann Historically, Brazil’s economic policies have been rela- tively protectionist, to the point where, in DecemberIt is very telling of a city’s startup culture when its 2012, the European Union filed a dispute against Brazil universities, business sector and state government over the discriminatory tax advantages given to domestic come together in an effort to promote and support industries by the Brazilian government. Earlier that year,entrepreneurship on all levels of its industry. This is ex- the government had significantly strengthened its mea-actly what happened in Florianópolis, the capital of Bra- sures to impose taxes on imported goods and tax exemp-zil’s Southern State of Santa Catarina, a popular travel tions on materials used in the production of exporteddestination world-renowned for its 42 beaches and surf goods, especially in the automotive and electronics andculture. In 2010, Santa Catarina's Association of Tech- related sectors. Brazil’s reply was that it is trying to fosternology Companies (ACATE) launched Florianópolis’ new innovation and protect the environment.brand: Innovation Capital. The city of 400,000 counts ap-proximately 600 tech companies and was crowned the Insufficient capacity and lowcountry’s most innovative city in 2014 by Endeavour, a productivity at the port lead toglobal startup accelerator. While Florianópolis stands out bottlenecks on both the mari-as a startup hub among Brazilian capitals, the country as time and ground fronts.a whole attracts multinationals and foreign investmentlooking to tap into its high growth rates and low infla-tion. What makes the country so appealing to foreignbusinesses and entrepreneurs?First, the sheer scale and growth of its markets. BCG re- A second challenge mentioned when interviewing Bra-ported that Brazil is currently the world’s third-largest zilian supply chain professionals refers to logistics andcosmetics market, fourth-largest personal computers the state of the country’s infrastructure. When shippingmarket and eighth-largest automobile market. A dramat- and receiving international cargo through the country’sic growth in household income is responsible for increas- ports, delays are to be expected. Santos, the commercialing the number of middle-class and affluent households port of São Paulo, received 25% of the country’s foreignby six million between 2000 and 2010. And this growth trade in 2013, amounting to 104 million metric tonnesis reflected in the country’s economy. Brazil is home to of cargo. Insufficient capacity and low productivity atthe busiest port of Latin America and the world’s seventh the port lead to bottlenecks on both the maritime andwealthiest economy with a GDP in 2013 of US$ 2.246 ground fronts. An average container takes 21 days totrillion. Despite the recent burst of the commodity price move through the Santos port, while it takes two daysbubble, Brazil’s foreign direct investments amounted to at the Rotterdam port where employees are ten timesUS$ 62 billion in 2014. Although these figures would ap- more productive. In São Paulo, vessels are known to waitpeal to any business looking for global expansion, Brazil’s in the sea for over 2 weeks because there is no space ateconomic and political situation still holds many chal- the docks for them to berth.lenges for businesses operating segments of their supplychain in the country.

On a global scale, the container throughput experienced emphasizes the importance of “trying to figure out ev-by the Santos port is a fraction of the goods handled by erything that could go wrong” and developing contin-the world’s busiest ports. The American Association of gency plans accordingly. One of the tactics used by DHLPort Authorities declared Shanghai the world’s busiest aims at speeding up the processing time for outboundport with annual container traffic of 32.5 million twenty- containers clearing the Santos customs. Legally, contain-foot equivalent units (containers) in 2012, while Santos ers to be exported may only remain at the Santos portcame in fortieth with 2.96m TEUs. Since then, Shanghai between 48 and 72 hours, and 24 hours during conges-has remained at the top of the list for the fifth consecu- tion. This time horizon for containers to pass through thetive year with 35.3m TEUs handled in 2014. In January lengthy customs bureaucracy is limited, and cargo often2015, Grupo Libra, the company operating both Rio de does not make it through the entire process before theJaneiro and São Paulo commercial ports has inaugurated deadline. The average time taken to clear a containera new bonded warehouse at the Santos port at the cost is 16 hours at the Santos port. When a container doesof US$ 11.7m, in an effort to increase the port’s capacity. not meet the 24-, 48- or 72-hour margin, the customsHowever, further investment will be required in order to clearing process must start over for that container. Someraise the port’s competitiveness globally. strategies used by DHL to speed up the process and en- sure that the container is cleared include storing contain-Perhaps the biggest obstacle to trading within the Brazil- ers in a bonded warehouse and starting theian market is the extensive bureaucracy. Philip Hammer customs clearing process ahead of time fromof Britcham, the British Chamber of Commerce, stresses there.that extensive preliminary planning is necessary for for-eign companies before launching their operations in Bra-zil. As opposed to the British market, an entrepreneurmust find a lawyer before he or she even deals with theirfirst customer. The ‘custo’, or Brazilian cost of doing busi-ness, is very high in comparison to other business-friendlier economies. In Brazil, it takes businesses2,600 hours each year to prepare and declaretaxes, while the process takes 318 hours inChina and 259 hours in Indonesia. It comes asno surprise that Brazil was ranked 120th outof 189 economies on the World Bank’s Easeof doing business index. In order to ensuretheir containers are shipped on time, manyfirms refer to third-party freight brokeragefirms to fulfil the bureaucratic requirements.Edenir Nunes, manager at Deutsche Post DHL-one of the world’s largest logistics providers-

Adding to the low port capacity are security concerns Despite these many challenges, Brazil remains an inter-on the road: many trucks are victims of theft and rob- esting option for foreign businesses because of its sheerberies. In 2012, US $468 million of cargo were stolen on scale and growth potential. At this time, the BCG reportsBrazilian highways, enticing some companies to switch to that sectors recording the highest growth are food prod-shipping goods via seaway, and thus contributing to the ucts and appliances. Entrepreneurs should keep an eyecurrent congestion issues. on personal services, financial services and private edu- cation, three sectors set to grow in the upcoming years.Finally, one cannot sufficiently stress the importance In recent years, the government has made efforts to at-of personal relationships in Brazilian business. Andrew tract foreign investments by keeping interest rates highMorgan, a consultant at Supply Chain Europe, advises and inflation low. Since the implementation of the RealBritish businesses going to Brazil, “[not to] come in as an Plan in 1994, the real has been relatively stable againstoutsider. […] Personal relationships are extremely impor- the US dollar. More recently, the Brazilian governmenttant. It is a slow process”. It is consistently reiterated by has set up initiatives to support entrepreneurs and at-professionals, Brazilian or foreign, that connections are tract talent. Every year since its launch in 2013, theextremely important in this particular market. The U.S. Start-up Brasil program, modeled after the successfulCommercial Service suggests attending trade shows- Start-up Chile, distributes approximately $US 20m- fromthere are over 300 trade shows per year in São Paulo both public and private investment- among 100 care-alone- to approach professionals face-to-face. The Com- fully selected startup businesses in tech-related fields.mercial Service also recommends finding a local agent Besides the accelerators, many associations exist to linkor distributor with knowledge of the environment and foreigners to Brazilian professionals who can navigateexisting contacts in the market. The country has different the complex business environment. With the decreaseclimates and geographies with distinct regional markets of commodity prices and the Brazilian economy heavilygrowing at different speeds. Having a strong foothold in dependent on raw exports, the country must transitionthe targeted region is key to understanding the market towards supply chains that create more complex prod-and tailoring your business’ offerings to populations of ucts of higher value, which are correlated with economicdifferent age groups and disposable income. growth. Perhaps investing in entrepreneurship and inno- vation is the answer.



Notes

Notes

Thank you! Benchmark is a genuine effort from the association of Supply Chain and Business Technology to start a magazine that promotes the awareness of the emergence of the two disciplines. The goal of Benchmark is to place you in scenarios that appear to be complicated but that are actually just complex. In the web of complexity there is simplicity and clarity as shown in the articles. Our writers highlight the best practices and methods in supply chain and business technology applied to many busi- nesses, including startups.The emergence of new solutions and technologies are disrupting today’s markets due to the prevalence of startups.Startups are able to respond to the markets’ needs faster than bigger corporations. The business canvas will foreverbe changed and a great deal will be attributed to their impact to change the status quo.It's an exciting time to be in Montreal and I encourage you to be a part of the startup community. I would liketo wholeheartedly thank our generous sponsors, partners, organizers and volunteers. This truly has beensuch an incredible experience for me I cannot extend my love and appreciation enough towards Yacine, Na-tasha, Tak, Tom, Adrien, Amanda, Natalia, Noor, Safia, Will, Anastasia and my mentor Patricia Dionne.-- Nikitasha Kapoor, Editor-in-Chief Contributors Feras Tak Tatjana Claudia Adrien MarianneEl Basha Chung Knorr Lingat Néret SpringmannWriter Writer Writer Writer Writer Writer Amanda Thomas Natasha Élisa-Jeanne Fiore Burelle Tremblay Kapoor Papillon Production & Design Director Writer & Creative DirectorIllustrator Photographer Organizers Special MentionsCo-Chair Yacine Ouldchikh, Co-Chair Nikitasha Kapoor,William Chan, Adrien Neret, Gabrielle Moroz, KirstenPawl, Yolane Sima, Andrew Lorant, Peter Puzsko, NicoleLoghin, David So, Jonathan Gouliaris and Ryan Amsden

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