THE CHALLENGE

A major Canadian distributor was purchasing small volumes of goods manufactured in the US and importing them to Canada for resale.  These product shipments were brought in by international carriers and subject to LTL/Small Parcel freight rates that were 30-50% greater than equivalent rates in the US.  With their existing methods, this importer was experiencing regular delays, misdirected freight and excessive freight charges based upon international tariffs. Bay Logistics was challenged to find a more cost-effective and time-efficient method for transporting these goods.

THE SOLUTION

Bay Logistics implemented procedures routing all orders from US vendors to its US border warehouses. Orders were received and interlined with Bay’s fleet of trucks offering immediate delivery services to the Canadian destinations. Additionally, Bay negotiated a reduction in rates from the US carriers and got many of the distributors’ US vendors to offer free delivery when shipped to a US address. Using its proprietary software platform, this method allowed for better tracking of the goods, better preparation for Canadian Customs review, and more timely deliveries.

THE RESULTS

Bay’s new approach eliminated unwarranted duty fees and penalties paid on hundreds of shipments, resulting in a cost savings of 38% and an average reduction in transit time of 2 days to all Canadian locations.