Innovative US Company in the Baby Industry Discovers of The Canadian Distribution Advantage
The Challenge:
This Links Warehousing & Fulfillment customer was looking for a fulfillment solution in Canada and a warehousing partner that could help facilitate shipments of multiple containers from China. The customer required a partner that was fully EDI compliant, while still being able to fulfill direct-to-consumer (D2C) orders. They were looking for an experienced Canadian warehouse based in Toronto with strict controls in place.
Our Approach:
Links Warehousing & Fulfillment reached out to the customer’s current freight forwarder and discussed shipping directly to Canada rather than shipping through the US. Links works with EDI Gateway to receive retailers’ EDI orders. They connect to Commerce Hub, SPS Commerce and all other EDI platforms. All orders are filtered through our inventory management system – and our customer is given access to view live stock. In turn our customer has given us read-access to their system so we are able to see stock levels in their system. We took the customer on a tour of our pick and pack facility to demonstrate our ability at fulfilling direct to consumer (D2C) orders and offered our services based on a percentage of the customer’s outgoing sales billing model (we do also offer fee by activity and fixed fee per item shipped billing models), The point of offering our services as a percentage of sales is to keep our warehousing and fulfillment costs simple. Our business model is designed to link our warehousing and fulfillment fees to your sales thereby making us a variable cost linked to sales. We do not charge for every action performed as we find this method an accounting nightmare for us and our clients. It is a method that is difficult to control or predict. We therefore bill based on an agreed percentage of your sales out of our warehouse. Our fees are ALL INCLUSIVE of everything within the scope that is agreed to with the exception of freight, customs clearance and specified material costs like cardboard boxes, labels and EDI. Typically this will include all receiving activities, storage of inventory and fulfillment of all orders.
Links Warehousing & Fulfillment Value:
Sears, Babies R Us and all the other independent retailers are extremely satisfied with our accurate on time delivery of orders and pick levels. We help with current stock analysis by setting stock re-order alerts, and often send product to the customer’s US warehouses to help with inventory shortfalls. Our customer enjoys the fact that we manage their EDI orders and help facilitate inbound shipments all on a fixed percentage of business. This customer also has the peace of mind of continuing to use their own warehouse management system they know, while still being able to log-in to our system to check stock levels. Helping facilitate US/Canada/China product movement eases a burden from our client and allows them to focus on product rather than the Canadian logistical concerns that Links Warehousing & Fulfillment specialises in. Links has been able to save this customer considerable money, time and headaches. Being able to work your business on a fixed percentage takes out all of the variables and unknowns of traditional warehouse billing models. This is The Canadian Distribution Advantage™
Return on Investment:
Our customer has been able to forecast Links’ warehousing fees simply by running sales forecasts. Why? That’s because our fees are a percentage of their outgoing sales. The customer have stronger sales in Canada now, and it’s all due to presence. Having a Canadian presence and partner helps improve order fulfillment by having inventory immediately available, shorter shipping times, and savings on customs duties and fees payable.
