 Benefits.
Maintaining Your Margins
By
consolidating and working with a fulfillment center in Canada,
not only can you come close to matching the costs of resident
corporations, you may be able to better them due to operating
without fixed overhead. NRI works with you to appreciate
all factors and costs of importing into Canada and getting
your goods to the retailer. It is in fact possible to achieve
better margins in Canada than in your resident country.
Why
not Ship Direct to Retail?
Since
each international transaction requires documentation, Customs
Brokers and delays, you may find the processing costs related
to each order excessive. You could also be passing on the
cost of previously incurred duties in your price to Canadian
customers who will then be subject to Canadian Duty as well.
By moving bulk shipments to our facilities and distributing
them within Canada to your Canadian retailers, the number
of international transactions and the headaches that come
with them will be drastically reduced. With your inventory
close to your Canadian market you will be able to respond
efficiently to such issues as repeat orders and rush shipments
without incurring huge costs. COD services are also not generally
available on direct shipments originating outside of Canada.
If
your goods are manufactured offshore and you first import
the goods into the US you will be incurring a US Duty cost.
You will now be passing this on to the Canadian customer
who will pay Canadian duty on the value and US Duty. Some
items, when shipped via the US are subject to a higher rate
of duty than if they were shipped directly from origin to
Canada.
Why 4PL Over
Other Options?
A
4PL distributes goods to other companies (retailers) without
direct relation to the goods itself. This means that you
retain title and still have full control over your inventory
in Canada and the distribution of it. Your product will appear
in locations consistent with your sales programs. Other options
of entering the Canadian market can have serious drawbacks…
Wholesale
Distributor
- Loss
of inventory ownership
- Risk
of product delivery into undesirable markets
- Brand
association with such outlets – hurt credibility
- Lack
of individual brand focus
- Reduced
margins
Licensing
- Partial
loss of control
- Risk
of product in undesirable locations
- Quality
control difficulties – risk of inferior goods with
your logo on them
- Valuable
time used policing licensee
- Not
realizing full brand potential – earning royalties
rather than full margins
Own
Warehouse
- Big
capital costs – racking and fixtures
- Fixed
cost of rent
- Costs
and headaches of warehouse employees
- Expensive
down-time between seasons
Top |
