An Ohio-based lawn and garden equipment retailer found a receptive market for its products in the Canadian market and soon had a growing list of orders from several B2B customers. As far as the retailer was concerned, its Canada-bound logistics solution was functioning smoothly. The company might have thought so until its North American distribution director was persuaded by a local Purolator International sales representative to consider areas in which performance could be improved. The director listened carefully as the sales rep outlined a customized solution that would reduce transit time, cut freight costs, and improve the border clearance process. The company made the switch to Purolator. Since then, it has seen a marked improvement in efficiency and costs, and as an added benefit, the company enjoys a high level of customer service.
When this retailer first started offering its products to Canadian dealers and wholesalers, several customers inquired about why it was not using a Canadian logistics provider. As the company soon learned, Canadians are very patriotic and will generally prefer a Canada-based option whenever possible. As the wholly owned subsidiary of Canada’s iconic Purolator Inc., Purolator International has a deep understanding of the Canadian market and shares its parent company’s distinctive red and blue logo, which is easily recognizable throughout Canada.
The challenge
Having a distinctive logo would not be reason enough for the retailer to change its transportation provider. But other, more compelling issues helped the retailer realize it could be better served by a provider with strong Canadian experience.
For one thing, the manufacturer’s original provider had trouble accessing customers located in Canada’s outer provinces and territories. Most carriers do not provide regular service to less-populated regions. In addition, Canada is officially a bilingual country, and in certain areas like Québec, a carrier must take care to provide a French-speaking driver. The retailer’s existing provider was incapable of providing these Canada-specific services.
The retailer had also noticed problems with its customs clearance charges. Namely, charges were far higher than expected. It seemed that each shipment was being assessed individual clearance fees, which were quickly adding up. A more experienced provider, on the other hand, would recognize that by consolidating all shipments into one larger shipment, customs agents would impose a single clearance fee.
For roughly 90% of shipments, we use a consolidated LTL line-haul to our Toronto facility, where they are broken down for final courier delivery. The remaining 10% are addressed with a customized air service solution for full coverage.
Instead of clearing each package individually, we combine all shipments into a single larger unit. This means only one customs fee is assessed and the shipment undergoes a single review, greatly reducing clearance wait times and costs.
Our team routinely checks, and then double-checks, every tariff classification. This ensures that the proper code has been assigned and that a shipment is assessed only the duty that is owed and not a penny more.
We helped the business register for Canada’s NRI program. This simplified the border clearance process and eliminated a significant competitive disadvantage, as they could now operate on a level playing field with their Canadian counterparts.
The results
Purolator’s solution has been a success in four important areas:
This added efficiency has been a pleasant development for this retailer, which, quite frankly, did not know its Canadian distribution plan was lacking. The company has been energized to expand its outreach to Canada and has already seen an increase in orders from Canadian customers. And perhaps the greatest indicators the retailer is pleased? Purolator’s contract has been renewed and the retailer has offered to provide positive feedback to potential Purolator new customers.
“We knew pretty much right away that we could provide a better solution,” says Betty Jo Rodey, Purolator International’s Strategic Account Executive. “No one else has the access to the Canadian market that Purolator does, so we went to work to deliver the solution this company wanted in the first place.”
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