Here is a great article on how this will affect you and your company.
http://www.afms.com/articles--tips/archives/09-2015
Friday, October 2, 2015
Friday, May 1, 2015
SCOPE 2015: Conference in the middle of a riot. #SCOPE2015
I took part in the SCOPE 2015 conference in Baltimore
this week, and it really was a great example of the “the best laid plans of
mice and men….” The staff of SCOPE did an amazing job of picking a venue,
gathering sponsors, speakers, exhibitors (all excellent), only to end up in a
city with civil unrest.
That being said, the “riots” had little
effect on a great conference that I would certainly attend again.
Here are some of my thoughts on the conference:
Best Booth: Scout Painless RFPs
 |
| Keeping it Simple SCOPE 2015 |
Ah-ha Moment with Speaker: “The Future of Fulfillment” by David J. Nielsen, Senior Vice President, Business
Development, Overstock.com
It was great to hear about the owner of
Overstock.com; Patrick M. Byrne. I really enjoy people who are willing to take risk, but look to
make the world a better place.
David quoted research that shows that online customers
are willing to wait up to 4 days for their items to be delivered. With Amazon
suggesting drones and other same day deliveries, this gives the supply chain
options to meet the needs of the market.
 |
| Click for more information |
Best Pitch: AFMS
This company has been doing business in the
US for over 23 years and they are able to negotiate saving for their customers:
an average of 22% on the transportation spend. This is accomplished by having
great benchmarking data, very experienced staff that know all the
transportation tips and tricks, and a holistic look at all the part of
worldwide transportation.
I am very excited that they have plans to
service the Canadian market. This market
is very underserved with this level of knowledge and experience. I predict that AFMS will be very successful
in Canada.
Best Meal: Mo's Crab and Pasta.
This is going to be one of my Baltimore
traditions. The place was understated but the food was amazing, and it had many
locals enjoying their meal. The crab cake was very good.
Best True Baltimore experience: Faidleys
Soup and a crab cake for lunch at the Lexington market. Delicious! I wish I could have taken some home with me, but seafood does not travel well. What a treat.
Great job SCOPE. See you next year.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.
lee@lslholdingco.com
Friday, April 24, 2015
Great Conference sponsored by the Logistic Institute #risk #resilience#plog
It was a pleasure to be Co-Chairman of the Risk and Resilience one
day seminar sponsored by Logistic Institute on April 16th in The GTA. This was
new endeavour for the Logistic Institute, but given it's success there will be
more to follow.
The speakers were extremely informative
and very organize to provide a well-balanced view of what is sure to be an
important topic for future Supply Chain discussions.
The Speakers were as follows;
David Watson: Co Chairman;
International Shipping Executive Retired after 43 years with Orient Oversea
Container Line.
David provided a history lesson on the shipping and the growth of
the container shipping industry. Fascinating to see how large the vessels are
getting.
Alex Tang: P. Eng. (ON, BC),
C. Eng., F ASCE, P.Log., President, L&T Consultant
Alex provided an amazing
view of Risk and the lack of the preparation, the cost and the time required to
get things normalized. The presentation had some great examples.
Essa Al-Saleh: President & CEO, Agility Global, Integrated
Logistics
Essa's presentation really enforced the importance of dealing with
the emerging markets. The unique cultures and business practices that must be
taken account, while being a company that operates under sound principles.
Irvin Varkonyi: CSCP, PLog., President,
Supply Chain, Operations Preparedness, Education
Irv was able to discuss the study of Risk and Resilience and how
it applies to a supply chain. What can we do as professionals to understand and
Mitigate the risk.
Fergus B. Groundwater: CPA, CMA, President,
Pegen Industries Inc.
Fergus closed the event by bringing risk and resilience home. How do
we manage our risk in a small to medium size firm. Fergus had some real life
examples that brought the subject to live.
Presentations
The presentations are available at the Logistic institute (ClickHere).
Do not miss out.
Subscribe to the Lowdown, the weekly logistics newsletter (click here)from the Logistic institute. There are many courses and learning opportunities
to obtain a Professional Logistic designation (Plog), it is what separates the
leaders in the Supply Chain industry.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.
lee@lslholdingco.com
Wednesday, April 8, 2015
Greater Toronto Area: April 16th. Risk and Resilience Conference. This is one of the hottest topics for Supply Chain professionals. A few seats are still available. Don't miss out.
Link for registering.
https://t.e2ma.net/webview/n3lah/9e3dd9dcfb8d2ee482ffdff65302883b
This a great opportunity to hear from experience speakers in this area of supply chain concerns. Whether you are in Operations, Sales or Consulting on Supply Chains; There is something for everyone.
Come and join us.
Tuesday, March 24, 2015
Is the Canada Post Postal Code System the best in the world?
By Lee Smith, P.log, B.M., CEO of LSL holding Company.
I was recently on a trip in US and I began thinking about the Postal Code of Canada vs. the Zip Code of the US. Which was the better system in terms of identifying a region and making it easier for Courier companies and individual users to find a specific location. So I did some comparisons.
Interesting facts about the Postal code (wikipedia)
- Implemented from 1972 to 1974.
- There is a theoretical limit of 7.2 million postal codes.
- 830,000 active postal codes represents about 12% of the total.
- Not used are: D, F, I, O, Q or U, and the first position also does not make use of the letters W or Z (In some cases it would make it difficult for the automated system to figure out the letter, as this is used to identified hand written addresses as well as mechanical ones).
- Includes a very special code for the North Pole: H0H 0H0
Interesting facts about the Zip Code (wikipedia)
- Implemented 1963.
- ZIP: Zone Improvement Plan.
- ZIP+4 introduce in 1983.
- There are just over 42,000 ZIP codes being used in the United States.
Ease of use
What makes up a Postal Code?
Postal District: All the Provinces are easy to identify by the first letter of the postal code. It is very easy to tell whether you after dealing the Newfoundland (A) or British Columbia (V), or somewhere in between. The larger cities of Montreal (H) and Toronto (M) have their own unique postal district in keeping with the large percentage of the population that call these cities home.
Forward Sortation Area. This is equivalent to the first 3 digits of the zip code. It is important to note that the second space in the FSA is very important. It denotes whether this is a urban Postal Code (1-9) or Rural postal Code (0). As much of Canada can be sparsely populated the rural Postal Code can cover some very large areas geographically. This system allows a rural code to be changed to an urban one if there is a population increase in that area.
Local Delivery Unit. This provides the Postal Code with the great versatility. It allows for the the LDU to identify a block, building, a floor in a building, a suite on a floor in a building, a customer in that suite, etc… It is all dependent on volume of mail and availability of unique postal codes. With only 12% being used, they have room to grow.
What is a Zip Code
A Zone Improvement Plan (ZIP) Code is the numerical code assigned by the U.S. Postal Service to designate a local area or entity for the delivery of mail. ZIP Codes may consist of 5, 7, 9, or 11 digits, and may refer to a street section, a collection of streets, an establishment, a structure, or a group of post office boxes.
ZIP codes are numbered with;
- The first digit representing a certain group of U.S. states,
- The second and third digits together representing a region in that group (or perhaps a large city)
- the fourth and fifth digits representing a group of delivery addresses within that region.
Other uses
As big data becomes more relevant large shippers are finding the Postal Code a great way to triangulate on their customers and provide more specific target marketing. The government has also used the Postal Code for census measurement, electoral boundaries and for allocating resources. The Zip Code provides a looser, but still functional grouping, and with the +4 allows for finer calibrations of location in the US and Territories.
Canada Post has provided a great tool for those who need to find a Postal Code quickly (postal code lookup ) You just typing in the number and name of the street and it does the rest. Give it a try.
The USPS also has a tool to view Zip Codes. It takes some more effort to get to the final Zip Code.
Checklist: The Winner is?
Easy to use. Postal Code
Easy to read visually. Postal Code
Easy to expand. Postal Code
Adding new combinations. Postal Code
Look up tool. Postal Code
Conclusion
The Postal Code system is the best fit for Canada. There are others in the world that have used the Alphanumeric system such as Great Britain, Argentina and Australia. The zip code is limited by the having only 10 possibilities in each position, where postal code has 26 possibilities in 3 of the 6 positions. The ZIP plus 4 is one of the ways that the US tried to get the pin point address location that comes with the Postal Code. That takes up 10 spaces for the information versus 6 for the Postal code. It is too late to change the ZIP code but I am sure the USPS would love a do over for 1963.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.
lee@lslholdingco.com
Monday, March 16, 2015
Managing Returns and exchanges of merchandise from Canada
By Lee Smith, P.log, B.M., CEO of LSL holding Company.
I was very surprised to to visit a client a few years back to find out that they were experiencing a 20% return rate of goods that they sold on the internet. With some effort we were able to reduce the return rate to a more manageable 6%. The difference of 14%, was the difference between making a profit and losing money on the eCommerce part of the business.
This shows the importance of returns on the bottom line of any business, but it becomes even more complicated when crossing the border is introduced into the mix. If you have been following my series of blogs (click on this link to my blog site) on Non-Resident importer status and Carrier Low value shipment Clearance, now you are ready to look a the options for returns from Canada.
Return options
- Reship: Have the customer keep the item and just reship a new one. If that items is less than $20, you are better off just shipping a new one if you do not have a consolidation point in Canada.
- Consolidation: Have all items return to a consolidation point in Canada. This is a great option if you have the volume or if your items are valuable and you want to make it simple for your customer.
- Triage: As an option of consolidation some suppliers will offer triaging. Great way to identify bricks (items of no value, but costly to return) and having them stay in Canada instead of paying for crossing the border.
- Consolidated shipment: The supplier in Canada will hold the items until there is enough volume to ship back to your location (that level can be decided on upfront)
- Destroy: The Canadian supplier can provide destruction with various level of certificate. No point in bring the items all the way back to your location in order to destroy them.
- Liquidation: This is another option that saves the items have to be returned to your location, and generates some revenue for your company in Canada.
- Fulfillment: If the item is still sellable, this provides an option to reship it to another Canadian consumer. Reduce your cost from your location.
- Customer generated return: This is where the consumer returns the items to your location at their expense. This is one that where it is very important to work with the customer to ensure that the item is identified as a returned item as this has taxes and duties implication for your company. It is also important to make it clear to the client, that they will have to apply with the carrier to get their duties and taxes back on a return item. E-14 forms for Mail services, B-15 Forms for Courier services.
Checklist of questions for building your returns and exchange program.
What is the volume that you expect?
What is the percentage of returns that you currently experiencing?
How important is it for you to have the items returned to you?
Can you delay the returns of these items if it will save you money by consolidating?
How easy do you wish to make it for your customers?
Once you can answer these questions you will be well on your way towards creating a return policy and program that meets your needs and he needs of your customers.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.
lee@lslholdingco.com
Monday, March 9, 2015
The Non-Resident importer (NRI) or how to make the border disappear for your Canadian Customers.
By Lee Smith, P.log, B.M., CEO of LSL holding Company.
The Non-Resident importer(NRI) program is an easy way to remove one of the biggest irritants to a Canadian shopper when purchasing goods online. They have one question in mind; “What is my final Landed Cost?"
Typical Canadian story
Almost every Canadian has a story of purchasing an item and having the duties, taxes, shipping and custom surcharges be more than the original item when delivered. A few years ago my son purchased a skateboard shoe online. He got a great deal for $70, but then you added shipping of $30, duties and taxes of $20, and custom fee of $26 for a total of $146. He was very disappointed to see that same shoe in the store a month later on sale for $129. He was one unhappy online shopper. Lesson learned!
Due to no fault of their own this shipper had a very unhappy customer because they were not able to provide him with the final landed cost. Most likely the shipper in the US had no idea what the final price would be to the receiver. That is where becoming a NRI is beneficial to any shipper with deliveries to Canada. You can give your customer the great feeling that this is the final cost and there will be no addition cost at the door when your goods are received.
Who Qualifies as a NRI?
A non-resident importer (NRI) is a company or individual who does not reside in Canada, but elects to act as the Importer of Record (IOR) for a shipment, or shipments, imported into Canada. The IOR is responsible for all accounting related to the importation including, but not limited to, any duties and/or taxes payable to the Government of Canada as well as the maintenance of all records pertaining to each importation.
Business Number
 |
| From CRA |
If your company is serious about Canada it is recommended that you also apply for a Business Number (BN) at the same time you are becoming a NRI. This allows you to collect the GST/HST (see side bar), and allows you some other taxable benefits such as the ability to claim back for taxes on returns, or for items purchased in Canada.
The benefits
- Provides a seamless offer to the Canadian shopper.
- The final landed to the door price is very clear. No surprises.
- Combined with CLVS (Courier Low Value Shipment) leads to shorter more predictable delivery time.
- Leads to happier Canadian shopper who will shop more.
- Increase your profits
 |
| NRI= Happy Customer |
Checklist
Get a Business number for Canada.
Register for GST/HST
Work with a professional to update your information to show the fully landed cost to your Canadian consumer.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.Monday, March 2, 2015
Unlocking the mystery of Courier Low Value Shipment Clearance (CLVS) for companies shipping from the US to Canada. part 2 of 2
By Lee Smith, P.log, B.M., CEO of LSL holding Company.
How to use the CLVS and how can my customers benefit from this service?
The great news about using Courier Low Value Clearance for items being shipped from the US to Canada, is that all of the onus to meet the customs regulations falls to the Courier company and the Broker responsible for clearing the border.Under the regulation the Courier must use the ACI eManifest to alert Customs that they have CLVS items and the PARS paperwork must be filed by the broker (links included if you want to do some more research.)
What information do I as a shipper have to provide?
The more information you can provide on the documentation for customs the smoother the clearance will be?
Required;
- a commercial invoice
- current price list
- bill of sale
- Country of origin
- or other similar document that describes the goods and contains information sufficient to enable an officer to determine the tariff classification and appraise the value for duty of the goods.
Optional
- Tariff classification code
- Duties and Taxes (only if collected on behalf of the Canadian Government)
Every competent courier service will have the software that will prompt you to provide the information required to cross the border. They need to provide your information to customs one hour before arrival at the border.
How does CLVS affect my customers and my business.
Speed
There is an area of Customs called “Secondary”, otherwise known as a place where parcels go to die. This area is reserved for taking a closer look at an item crossing the border. This can lead to delays from 1 day to 7 days depending the location that your item is crossing the border, the time of the year, available personel or some other factor that you do not control. In the past this has led to late deliveries and customer dissatisfaction with the buying process on the part of the Canadian consumer. CLVS does not eliminate this all together, but it does provide a separate streaming of items outside of the Commercial Clearance which requires more screening. It makes the work of the Border agent easier and the end consumer gets to benefit from the speed.
Confidence
eCommerce is a world supported by ratings and trust. Every order that is placed, there has to be a level of trust that the item will be delivered, as advertised. By being part of the CLVS program you are showing the Canadian consumer that you are very aware of the steps required for crossing the border, and this increases the level of confidence that the Canadian consumer can have in placing an order. Using the rule of thumb that every happy eCommerce customs leads to 5 more orders, raising confidence of the consumer is a great way to increase your sales to Canadian consumers.Checklist
CLVS is an important process for Shipping to Canadians.It requires little input from the Mailer, as the Courier service is responsible for documentation
It is important for you as a Shipper to be aware of this program and how it will affect your customers in Canada.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.Sunday, February 22, 2015
Unlocking the mystery of Courier Low Value Shipment Clearance (CLVS) for companies shipping from the US to Canada. part 1 of 2
By Lee Smith, P.log, B.M., CEO of LSL holding Company.
What is it?
Canada Customs Courier Low Value Shipment (CLVS) Program is intended to help simplify the process to import low value goods. The program streamlines the customs processing of shipments valued at Can$2,500 or less and provides the courier industry with expedited release.Who can use it?
This service was developed to be used by Courier companies to ensure that the couriers were not being subjected to increased scrutiny at the point of entries that would put them in a disadvantage to the Postal Clearance which requires less information for custom clearance. This ensures that your customers in Canada can get items as fast as some of your customer in the US, using the standard courier services.History
The program came into being as part of the Smart Border Declaration and Action Plan in 2001. Both the Canadian and US government realized that they were losing a lot of money because of inefficient border crossing. It was estimated this was costing the Canadian economy at least 1% of GDP or $16B per year. The dollar value to use this service was raised from $1,600 to $2,500 and harmonized by the US and Canada on January 8th, 2013. "The harmonization of the value thresholds for customs clearance for both Canada and the United States will facilitate and expedite trade between our countries, allowing customs to focus on maintaining a secure and efficient border, " said the Honourable Vic Toews, Minister of Public Safety.What are the restrictions?
All items over the $2,500 CDN threshold or on a prohibited, regulated or controlled list. Prohibited weapons, propaganda, etc. are not allowed under any circumstances. Any import that requires more due diligence, paper work or regulatory control cannot use this service. The vast majority of items can be mailed under this program, saving the shipper valuable time and money, not to mention the reduced paperwork.This service may not be the best for non-resident importers as it captures taxes and duties at the time of final delivery. However, for low value imports or new shippers trying out the Canadian market, this is a low risk way of getting to the Canadian consumers.
Changes to the program?
Cost reduction will continue to be the focus of the Canadian Border Services. They are projecting some major increases in the volumes going through this programs as cross border shopping shows no signs of slowing down in the near future. Experts have called for an increase of 4 times the volumes of ecommerce shopping in the next 10 years.
Disclaimer: There are many options that should be considered before deciding on the best method for clearing the border for your customers. It is best to review with a professional before making any major decision on your supply chain.
Part 2:
How to use the service and how can my customers benefit from this service?
lee@lslholdingco.com
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