The stronger U.S. dollar has meant that American buying power is back, and that the Canadian market is again an excellent resource for manufacturing and sourcing components, supplies and raw materials.
But, as many U.S. businesses have learned the hard way, locking in a competitive price with a Canadian supplier is only half the battle — equally important is ensuring that the costs associated with moving a shipment of goods across the border do not eat up any expected savings. Businesses have reported nightmarish stories, in which Canadian shipments have arrived at their doors — along with logistics bills for amounts that far exceed the costs of the goods ordered.
Why does this happen? In some instances, U.S. businesses simply assume that the shipping services provided by the Canadian merchant will be sufficient. While this may be true for shipments traveling within Canada, it’s a different scenario when cross border services are necessary. And the fact is, not every logistics provider has the experience or expertise to move goods across the border. Not only are there regulatory mandates and paperwork and fee requirements, but a logistics provider must also have access to a delivery network once goods are allowed entry into the U.S. A transportation provider could have the envy of all distribution networks in Canada, but that’s not going to get a package delivered in the U.S.