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www.investcalgaryregion.ca

Table of Contents

/ŶƚƌŽĚƵĐƚŝŽŶ�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϯ

Chapter 1�ƌŝŶŐŝŶŐ�ŐŽŽĚƐ�ŝŶƚŽ��ĂŶĂĚĂ͗��ŽƐƚƐ͕ĐŽŶƐŝĚĞƌĂƟŽŶƐ͕�ĂŶĚ�ŽƚŚĞƌ�ĮŶĂŶĐŝĂůĨĂĐƚŽƌƐ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϱ

Chapter 2^ŚŝƉƐ͕�ƉůĂŶĞƐ͕�ƚƌĂŝŶƐ�ĂŶĚ�ƚƌƵĐŬƐ͗<ŶŽǁŝŶŐ�ƚŚĞ�ĐŚĞĂƉĞƐƚ�ĂŶĚ�ŵŽƐƚĐŽƐƚͲĞīĞĐƟǀĞ�ŵĞƚŚŽĚ�ŽĨƚƌĂŶƐƉŽƌƚŝŶŐ�ŐŽŽĚƐ� ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϴ

Chapter 3�ŽŽƐƟŶŐ�LJŽƵƌ�ďŽƩŽŵ�ůŝŶĞ�ďLJƐŚŝƉƉŝŶŐ�ƚŽ�ƚŚĞ�Z/',d�ŵĂƌŬĞƚ� ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϭϭ

Chapter 4,Žǁ�ƚƌĂŶƐŝƚ�ƟŵĞ�ĂŶĚ�ůŽĐĂůŝŶĨƌĂƐƚƌƵĐƚƵƌĞ�ŝŵƉĂĐƚƐ�LJŽƵƌďŽƚƚŽŵ�ůŝŶĞ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϭϯ

Chapter 5,Žǁ�ƚŽ�ĐŚŽŽƐĞ�ƚŚĞ�ďĞƐƚ�ůŽĐĂƚŝŽŶ�ĨŽƌLJŽƵƌ�ďƵƐŝŶĞƐƐ͍�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϭϱ

Chapter 6�ƵŝůĚŝŶŐ�ǀƐ͘�ďƵLJŝŶŐ�ǀƐ͘�ůĞĂƐŝŶŐ͗hŶĚĞƌƐƚĂŶĚŝŶŐ�ƚŚĞ�ďĞƐƚ�ĐŚŽŝĐĞ�͘ �͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�ϭϴ

Chapter 7dŚĞ�ŝŵƉŽƌƚĂŶĐĞ�ŽĨ�ƵŶĚĞƌƐƚĂŶĚŝŶŐ�ĂŶĂĚĂ͛Ɛ�ůŽĐĂů�ůĂďŽƵƌ�ŵĂƌŬĞƚ�ĂŶĚ�ǁŚĂƚŝƚ�ŵĞĂŶƐ�ƚŽ�LJŽƵ� ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�Ϯϯ

dŽƚĂů�>ĂŶĚĞĚ��ŽƐƚ��ŚĞĐŬůŝƐƚ� ͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘�͘� WĂŐĞ�Ϯϳ

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IntroductionA guide to calculating total landed cost in CanadaLanded costs can make or break a business.

Yet many businesses, when considering transporting goods to and across Canada, don’t understand what goes into landed cost calculations or what to consider when ȴJXULQJ�RXW�WKH�WUXH�FRVW�RI�D�SURGXFW��

That’s partly�EHFDXVH�RI�WKH�VKHHU�FRPSOH[LW\�RI�HYHU\WKLQJ�DFURVV�WKH�VXSSO\�DQG�what goes in to the total landed cost calculation.

Whether WKDWȇV�WDULV�DQG�GXWLHV�FRPLQJ�LQWR�WKH�FRXQWU\�RU�WUDQVSRUWDWLRQ�DQG ORJLVWLFV�WR�JHW�SURGXFWV�IURP�WKH�VXSSOLHU��WR�WKH�UHWDLOHU�RU�FXVWRPHU�DQG HYHU\WKLQJ�LQ�EHWZHHQ�

Simply stated, total landed cost is the amount of all costs beyond the raw materials or manufacturing and takes into account the delivery of products WR�WKH�SRLQW�ZKHUH�\RX�PDNH�D�SURȴW��W\SLFDOO\�WR�\RXU�FXVWRPHUȇV�GRRU�

How hLJK�WKDW�VXP�LV�ȃ�DQG�ZKHWKHU�\RX�DFWXDOO\�WXUQ�D�SURȴW�ȃ�GHSHQGV�RQ�WKH�WDFWLFV�XVHG�WR�JHW�SURGXFWV�IURP�3RLQW�$�WR�3RLQW�%�

Typically,�WKHUH�DUH�IRXU�PDMRU�FRVW�FDWHJRULHV�DQG�FRQVLGHUDWLRQV�ZLWKLQ�HDFK�RI�WKRVH�FDWHJRULHV�WKDW�LQYROYH�FDOFXODWLRQV�ZD\�DKHDG�RI�D�SURGXFW�JHWWLQJ�SXW�LQWR D�ER[�DQG�RQ�WKH�EDFN�RI�D�WUXFN��

• Inbound transportation (How much it’s going to cost to get that productWR�LWV�LQWHQGHG�PDUNHW��L�H��&DQDGD��DQG�WKH�SULFH�WDJ�IRU�DFFHVV�DQG�HJUHVV��

• Occupancy (Where it’s going to be stored when it gets there. This can takeLQWR�DFFRXQW�WKH�FRVW�RI�ODQG��ZDJH�UDWHV��XWLOLWLHV�DQG�LQVXUDQFH�HWF��

• Inventory �3URGXFW�FDUU\LQJ�FRVWV�DQG�RU�DYDLODELOLW\��

• Outbound �+RZ�LWȇV�JRLQJ�WR�XOWLPDWHO\�JHW�WR�LWV�ȴQDO�GHVWLQDWLRQ�ȃ�WKHFXVWRPHU�ȃ�DQG�DFFHVV�WR�PXOWL�PRGDO�WUDQVSRUWDWLRQ�DQG�RWKHU�ORJLVWLFV��

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ΖW�PLJKW�VHHP�REYLRXV��FKRRVH�WKH�FKHDSHVW�DQG�PRUH�GLUHFW�URXWH�WR�WKH�FXVWRPHU��%XW�WKLV�LV�QRW�DOZD\V�WKH�EHVW�ZD\�WR�JR��

Cost sDYLQJV�LQ�RQH�DUHD�FDQ�HQG�XS�FRVWLQJ�LQ�DQRWKHU�RU�YLFH�YHUVD��7KHUH�DUH�DOO�VRUWV�RI�KLGGHQ�FRVWV�WKDW�FDQ�TXLFNO\�DGG�XS�LI�\RX�DUHQȇW�DZDUH�RI�WKHP��

Total ODQGHG�FRVW�PRGHOLQJ�WDNHV�LQWR�DFFRXQW�ZKDW�LI�VFHQDULRV�DQG�H[DPLQHV�DOO�WKH�SRWHQWLDO�SUREOHPV�\RXU�EXVLQHVV�FRXOG�IDFH�WKDW�FRXOG�LPSDFW�WKH�ERWWRP�OLQH��

You nHHG�WR�WKLQN�VWUDWHJLFDOO\�WR�ȴQG�WKH�ORZHVW�WRWDO�ODQGHG�FRVW��ZKHWKHU�\RX�GR�WKH�OHJZRUN�\RXUVHOI�RU�KLUH�DQ�H[SHUW��

%HFDXVH�LI�\RX�GRQȇW��\RXU�KDUG�HDUQHG�FDVK�DQG�SRWHQWLDO�SURȴW�LV�DW�VHULRXV�ULVN���

This e-bRRN�IRFXVHV�RQ�WKH�&DQDGLDQ�PDUNHW�EXW�FDQ�HVVHQWLDOO\�EH�DSSOLHG anywhere.

ΖW�VHUYHV�Ds a guide on the areas to consider in calculating landed cost and how to keep those costs low so you can ultimately boost your bottom line.

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Chapter 1Bringing�JRRGV�LQWR�&DQDGD��FRVWV� FRQVLGHUDWLRQV��DQG�RWKHU�ȴQDQFLDO factors

(YHU\�LPSRUWHU�NQRZV�LW�FDQ�EH�D�QLJKWPDUH�QDYLJDWLQJ�JRYHUQPHQW�UHG�WDSH��

)RU�HYHU\�PLQXWH�WKH�PRYHPHQW�RI�JRRGV�LV�GHOD\HG��DQRWKHU�GROODU�LV�ORVW��

More imporWDQWO\��LI�\RX�GRQȇW�IROORZ�WKH�UXOHV�\RX�ULVN�IDOOLQJ�RXW�RI�FRPSOLDQFH DQG�WKDW�FDQ�DOVR�XQQHFHVVDULO\�FRVW�\RXU�FRPSDQ\�WKRXVDQGV�RI�GROODUV�LQ�ȴQHV�DQG�IHHV�

Canada is making strides reducing barriers to business. The country boasts a EXVLQHVV�IULHQGO\�WD[�UHJLPH��

ΖW�RHUV�YDULRXV�FXVWRPV�GXWLHV�DGYDQWDJHV�DQG�LQFHQWLYH�SURJUDPV�WKDW�FDQ EHQHȴW�\RXU�EXVLQHVV�DQG�UHGXFH�WRWDO�ODQGHG�FRVWV�DVVRFLDWHG�ZLWK�LQYHQWRU\��

Still, likH�HYHU\ZKHUH��FURVVLQJ�ERUGHUV�FRVWV�PRQH\�

Those costV�DUH�LQȵXHQFHG�E\�HYHU\WKLQJ�IURP�WKH�RULJLQ�RI�\RXU�JRRGV�WR�WKH FODVVLȴFDWLRQ�RI�D�SURGXFW��

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Foreign Trade Zone

ΖI��IRU�LQVWDQFH��LQYHQWRU\�FRPHV�IURP�D�FRXQWU\�RXWVLGH�WKH�8�6��RU�0H[LFR��\RX�PD\�EH�DEOH�WR�WDNH�DGYDQWDJH�RI�D�IRUHLJQ�WUDGH�]RQH��)7=��DQG�GHIHU�GXW\��

The Calgary�5HJLRQ�LV�IRUPDOL]LQJ�WR�EHFRPH�&DQDGDȇV�VHFRQG�)RUHLJQ�7UDGH�=RQH��DIWHU�:LQQLSHJ�DQG�WKHVH�DUH�WZR�SODFHV�ZKHUH�VDYLQJV�FDQ�EH�IRXQG�IRU�VRPH companies.

Using an )7=�FDQ�VDYH�PDQXIDFWXUHrV�ȴYH�SHUFHQW�RU�PRUH�RQ�JRRGV�DQG VHUYLFHV�DQG�GHIHU�FRVWV�XQWLO�WKH�SURGXFWV�HQWHU�WKH�PDQXIDFWXULQJ�SURFHVV��

Retailers��PHDQWLPH��FDQ�ERRVW�WKHLU�FDVK�ȵRZ�E\�GHOD\LQJ�SD\PHQW�RI�WKH 9DOXH�$GGHG�7D[��9$7��RQ�D�SURGXFW�XQWLO�LW�OHDYHV�WKH�ZDUHKRXVH�RU�GLVWULEXWLRQ�centre.

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%XW�LWȇV�LPSRUWDQW�WR�NQRZ��WKH�LPSRUWHU�LV�XOWLPDWHO\�UHVSRQVLEOH�IRU�WKH�DFFRXQWLQJ�GRFXPHQWDWLRQ��SD\PHQW�RI�GXWLHV�DQG�WD[HV��DQG�VXEVHTXHQW�FRUUHFWLRQV�VXFK�DV�UH�GHWHUPLQDWLRQ�RI�FODVVLȴFDWLRQ�RULJLQ�DQG�YDOXDWLRQ��

$Q\�RZHG�GXWLHV�DUH�DOVR�WKH�UHVSRQVLELOLW\�RI�WKH�LPSRUWHU�DQG�QRWKLQJ�PRYHV�XQWLO�those bills are paid.

So, in hLULQJ�D�EURNHU��PDNH�VXUH�WKH\�DUH�H[SHULHQFHG�DQG�NQRZOHGJHDEOH� 7KH�*RYHUQPHQW�RI�&DQDGD�SURYLGHV�D�OLVW�RI�OLFHQVHG�EURNHUV�DFURVV�&DQDGD��

For those who choose to go it alone or handle the paperwork in-house, the *RYHUQPHQW�RI�&DQDGD�DOVR�SURYLGHV�D�JRRG�step-by-step guide�RQ�QDYLJDWLQJ WD[HV��WDULV�DQG�IHHV�

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Here’s a checklist of Canada’s importing requirements:

• Obtain�\RXU�LPSRUW�H[SRUW�business number�IURP�WKH�&DQDGD�5HYHQXH � ��$JHQF\�

ȏ�ΖGHQWLI\�ZKDW�W\SH�RI�JRRGV�\RX�ZDQW�WR�LPSRUW�

• Determine ZKHWKHU�\RX�ZLOO�XVH�WKH�VHUYLFHV�RI�D�FXVWRPV�EURNHU�

• Determine the FRXQWU\�RI�RULJLQ�IRU�WKH�JRRGV�\RX�DUH�LPSRUWLQJ�

� ȏ�9HULI\�whether the goods are controlled, regulated or prohibited by the � ��&DQDGD�%RUGHU�6HUYLFHV�$JHQF\��&%6$��RU�DQ\�RWKHU�JRYHUQPHQW department or agency.

• Ensure that the goods are marked�DQG�ODEHOHG�DV�UHTXLUHG�

• Determine�WKH����GLJLW�WDUL�FODVVLȴFDWLRQ�QXPEHU�DQG�WKH�DSSOLFDEOH�UDWH � ��RI�GXW\�IRU�HDFK�RI�WKH�LWHPV�\RX�DUH�LPSRUWLQJ�XVLQJ�WKH�&XVWRPV�7DUL.

• Determine�ZKHWKHU�WKH�JRRGV�DUH�VXEMHFW�WR�DQ\�RWKHU�GXWLHV�RU�WD[HV � ��LQFOXGLQJ�WKH�JRRGV�DQG�VHUYLFHV�WD[��*67��

• Obtain LQYRLFHV��FHUWLȴFDWHV�RI�RULJLQ�DQG�DQ\�RWKHU�UHTXLUHG�GRFXPHQWV�

• Determine the YDOXH�IRU�GXW\�RI�WKH�JRRGV�\RX�DUH�LPSRUWLQJ�

• Select�WKH�PHWKRG�RI�VKLSSLQJ�DQG�FRPPXQLFDWH�ZLWK�WKH�WUDQVSRUWDWLRQ � ��FRPSDQ\�RQ�FURVV�ERUGHU�UHTXLUHPHQWV�

� ȏ�$ZDLW�QRWLȴFDWLRQ�WKDW�\RXU�VKLSPHQW�KDV�DUULYHG�

Submit�WKH�UHTXLUHG�&%6$�GRFXPHQWV�DQG�SD\�DQ\�GXWLHV�DQG�WD[HV�RZLQJ�LQ�RUGHU�WR�KDYH�WKH�JRRGV�UHOHDVHG��

Note: 6KLSPHQWV�YDOXHG�DW�&$1�������RU�OHVV�DUULYLQJ�E\�PDLO�RU�FRXULHU�PD\ EH�DVVHVVHG�IRU�GXWLHV�DQG�WD[HV�DQG�WKHQ�UHOHDVHG�E\�WKH�&%6$�RU�WKH�FRXULHU company.

6RXUFH���&DQDGD�%RUGHU�6HUYLFHV�$JHQF\

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Chapter 26KLSV��SODQHV��WUDLQV�DQG�WUXFNV� knowing the cheapest and most FRVW�HHFWLYH�PHWKRG�RI transporting goodsWhether LWȇV�VKLSV��SODQHV��WUDLQV�RU�WUXFNV�ȃ�HYHU\�PRGH�RI�LQERXQG�DQG�RXWERXQG transportation needs to be considered in the landed cost calculation.

The mode RI�WUDQVSRUWDWLRQ�FKRVHQ�WR�PRYH�JRRGV�WR�PDUNHW�FDQ�HLWKHU�ERRVW�WKH�ERWWRP�OLQH�RU�NLOO�WKH�SURȴW�PDUJLQ��

%XW�VRmetimes the cheapest way is not the best way.

Though iW�VHHPV�FRXQWHULQWXLWLYH�� there are times when using the most H[SHQVLYH�PRGH�RI�WUDQVSRUWDWLRQ��DLU��can keep your total landed costs lower.

(YHQ�ZLWhin a mode, the corridor chosen to transport goods can LPSDFW�WKH�VXFFHVV�RI�D�EXVLQHVV��

On a global scale, Canada ranksamong the WRS����ZRUOG�FRQWDLQHU�SRUWV, ZLWK�D�YROXPH�RI������PLOOLRQ�7(8V�WZHQW\�IRRW�HTXLYDOHQW�XQLW��LQ������FRPLQJ�LQ�WKURXJK�0HWUR�9DQFRXYHU�

3RUW�0HWUR�9DQFRXYHU�WUDGHV������ELOOLRQ�LQ�JRRGV��EDVHG�RQ����� FDUJR�YROXPHV��ZLWK�PRUH�WKDQ�����WUDGLQJ�HFRQRPLHV�DQQXDOO\�

So, it makes sense to ship cargo to this seaport and then the shortest possible distance to a local distribution centre, right?

1RW�always.

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Choosing the correct mode of transportation for your business

If doing it another way can reduce the total landed cost then you might want WR�JR�WKH�H[WUD�GLVWDQFH�WR�DQRWKHU�ORFDWLRQ�IDUWKHU�DZD\��

This needs to be considered when managing your supply chain and choosing LQERXQG�DQG�RXWERXQG�PRGHV�RI�WUDQVSRUWDWLRQ��

Depending RQ�WKH�W\SH�RI�FDUJR�DQG�EXVLQHVV��VRPHWLPHV�VKLSSLQJ�JRRGV�D�JUHDWHU�GLVWDQFH�WR�DQ�LQODQG�SRUW�YLD�UDLO�FDQ�XOWLPDWHO\�EH�PRUH�HFRQRPLFDO��

For otheUV��UDLO�LV�WRR�VORZ�DQG�D�IDVWHU��PRUH�H[SHQVLYH�PRGH�OLNH�DLU�PDNHV�VHQVH��

The interPRGDO�QHWZRUN�DQG�WUDQVIHU�SRLQWV�DUH�NH\�FRQVLGHUDWLRQV�LQ�FDOFXODWLQJ�total landed cost.

The better the networks, the more nimble a business can be.

Occupancy DQG�LQYHQWRU\�DUH�RWKHU�NH\�FRQVLGHUDWLRQV�LQ�WKLV�SLHFH�RI�WKH�ORJLVWLFV�SX]]OH��

Choosing the appropriate mode of transportation is critical to ensuring your SURGXFWV�DUULYH�RQ�WLPH�DQG�DW�WKH�ULJKW�FRVW��

It beginV�ZLWK�D�FDUHIXO�HYDOXDWLRQ�RI�\RXU�EXVLQHVV�QHHGV�DQG�FRPSDULVRQ�RI�WKH�EHQHȴWV�RI�HDFK�PHWKRG��

([SRUW�VXFFHVV�LV�GHWHUPLQHG�E\�SLFNLQJ�WKH�EHVW�PRGH�RI�WUDQVSRUWDWLRQ��

Inland Ports

Once yRXȇYH�GHFLGHG�RQ�D�SRUW�DQG�D�PHWKRG��WKH�QH[W�GHFLVLRQ�VKRXOG�FRQVLGHU�ZKHWKHU�WR�VWRS�WKHUH�RU�VKLS�\RXU�JRRGV�HYHQ�IXUWKHU��WR�DQ�LQODQG�SRUW��

Inland portV��DQG�WKHLU�FRQQHFWLYLW\�WR�PDULQH�SRUWV��SOD\�DQ�LPSRUWDQW�UROH�LQ PDNLQJ�WKH�V\VWHP�RI�FDUJR�GHOLYHU\�PRUH�ȵH[LEOH��HVSHFLDOO\�DV�WKH�FRPSOH[LW\ RI�VXSSO\�FKDLQV�KDV�JURZQ��

While LQODQG�SRUWV�DUHQȇW�DOZD\V�WKH�ȴUVW�RU�EHVW�FKRLFH�IRU�ZDUHKRXVLQJ�\RXU products, they should be considered when calculating the total landed cost.

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Chapter 3Boosting your bottom line by VKLSSLQJ�WR�WKH�5Ζ*+7�PDUNHW

Shipping to the biggest Canadian market ZRXOG�VHHP�WKH�PRVW�REYLRXV�GHFLVLRQ�IRU�many companies.

%�&�ȇV�/RZHU�0DLQODQG��IRU�H[DPSOH��KDV�D�SRSXODWLRQ�URXJKO\�GRXEOH�WKDW�RI�&DOJDU\�ZLWK�PRUH�WKDQ�����PLOOLRQ�SHRSOH��

%XW�shipping products directly to the biggest SRSXODWLRQ�EDVH�GRHVQȇW�DOZD\V�EHQHȴW�\RXU�business.

If you�FDQȇW�VDYH�PRQH\�LQ�WKH�ORFDWLRQ�\RX�FKRRVH�DV�D�WUDQVLW�SRLQW��WKHQ�WKHUH�PLJKW�QRW�EH�DQ\�SRLQW�EHLQJ�WKHUH��

Many UHWDLOHUV�ZKRȇYH�VHW�XS�VKRS�LQ &DQDGD�KDYH�ȴJXUHG�RXW�WKDW�VKLSSLQJ�SDVW�WKH�ELJJHVW�PDUNHW�DQG�PRYLQJ�FDUJR�EDFN�out through that distribution point can DFWXDOO\�ERRVW�WKH�ERWWRP�OLQH�DQG�VDYH

on total landed cost. Transporting to a warehouse or distribution centre in an area ZLWK�ORZHU�RFFXSDQF\�FDQ�LQFUHDVH�SURȴWV��

There�FDQ�EH�D�FRPSHWLWLYH�DGYDQWDJH�LQ�VSHQGLQJ�PRUH�RQ�LQERXQG�WUDQVSRUWDWLRQ�WR�JHW�JRRGV�RU�SURGXFWV�WR�D�ZDUHKRXVH�PRUH�WKDQ�������NLORPHWUHV�DZD\�IURP�D�seaport to a smaller market.

ΖQ�IDFW��UHVHDUFK�KDV�SURYHQ�LQ�DQ�HFRQRP\�GRPLQDWHG�E\�&KLQHVH�LPSRUWV��WKH�FKHDSHVW�ZD\�WR�PRYH�JRRGV�LV�WR�VKLS�SDVW�WKH�ODUJHVW�PDUNHW��

9DQFRXYHU��IRU�LQVWDQFH��ERDVWV�WKH�ORZHVW�LQERXQG�FRVWV�EHFDXVH�RI�LWV�SUR[LPLW\ WR�WLGHZDWHU�EXW�&DOJDU\�FODLPV�WKH�ORZHVW�RXWERXQG�FRVWV�EHFDXVH�RI�LWV�FHQWUDO�location.

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Inland�SRUW�GHYHORSPHQW�LVQȇW�OLPLWHG�WR�WKH�ZHVWHUQ�&DQDGD��It’s on the rise HYHU\ZKHUH�EHFDXVH�PDQ\�EXVLQHVVHV��HVSHFLDOO\�UHWDLOHUV��KDYH�IRXQG�WKDW LQODQG�SRUWV�FDQ�VHUYH�DV�GLVWULEXWLRQV�FHQWUHV��ZKHUH�FRQWDLQHUV�DUH�R�ORDGHG DQG�VZLWFKHG�WR�DQRWKHU�PRGH�RI�WUDQVSRUWDWLRQ��

-XVW�DVN�PDMRU�UHWDLOHUV�OLNH�:DOPDUW��+RPH�'HSRW�DQG�&DQDGLDQ�7LUH��ZKRȇYH�IRXQG�WRWDO�ODQGHG�FRVWV�FDQ�EH�ORZHUHG�E\�FRQVLGHULQJ�D�FRPELQDWLRQ�RI�IDFWRUV�EH\RQG�geography and including all the costs that go into total landed cost.

Still, ZKDW�PDNHV�VHQVH�IRU�D�UHWDLO�EXVLQHVV�PLJKW�QRW�IRU�D�PDQXIDFWXUHU��The SURGXFW�DQG�LWV�FRVW�DV�ZHOO�DV�SUR[LPLW\�WR�FXVWRPHUV�DUH�DOVR�DPRQJ�WKH�PDQ\ IDFWRUV�WR�EH�FRQVLGHUHG��

Knowing�ZKDWȇV�ULJKW�IRU�\RXU�EXVLQHVV�DQG�ZKLFK�PDUNHW�WR�VKLS�WR�RU�IURP�LV GHSHQGHQW�RQ�GRLQJ�WKH�PDWK�DQG�WKDW�DQDO\VHV�FDQ�EH�YHU\�FRPSOH[�DQG H[SHQVLYH��

Sometimes simply looking what the competition is doing is a good starting point. ΖQ�SUDFWLFDO�WHUPV��LI�\RXȇUH�D�VPDOO�6XEZD\�IUDQFKLVHH��ORRN�ZKHUH�0F'RQDOGȇV�LV�building new outlets and consider setting up across the street.

The &DQDGLDQ�7UDGH�&RPPLVVLRQHU�6HUYLFH�RHUV�IRXU�WLSV�WR�FRQVLGHU�RQ�ZKDW VKLSSLQJ�PHWKRGV�WR�XVH�LQ�&DQDGD�

• 7UXFN Ȃ�7UXFNLQJ�LV�SRSXODU�IRU�VKLSPHQWV�ZLWKLQ�1RUWK�$PHULFD��EXW � ��VHUYLFH�GHFOLQHV�RQFH�\RX�JR�EH\RQG�WKH�PDMRU�LQGXVWULDOL]HG countries.

• Rail Ȃ�5DLO�LV�ZLGHO\�XVHG�ZKHQ�VKLSSLQJ�WR�WKH�8QLWHG�6WDWHV��RU�WR � ��DQG�IURP�VHDSRUWV�

• Air Ȃ�6KLSSLQJ�E\�DLU�LV�PRUH�H[SHQVLYH�WKDQ�VXUIDFH�RU�VHD�WUDQVSRUW� � ��EXW�WKH�KLJKHU�FRVWV�PD\�EH�RVHW�E\�IDVWHU�GHOLYHU\��ORZHU�LQVXUDQFH� � ��FKHDSHU�ZDUHKRXVLQJ��H[RWLF�PDUNHWV�DQG�EHWWHU�LQYHQWRU\�FRQWURO�

• Ocean Ȃ�6KLSSLQJ�ODUJH�LWHPV��EXON�FRPPRGLWLHV�DQG�JRRGV�WR�RVKRUH � ��PDUNHWV�WKDW�GR�QRW�UHTXLUH�IDVW�GHOLYHU\�LV�PRUH�HFRQRPLFDO�E\�VHD�

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Chapter 4How transit time and local infrastructure impacts your bottom line

Daily decisions madH�E\�JRYHUQPHQWV�LQȵXHQFH�WUDQVSRUWDWLRQ�FRVWV�DQG�FDQ��LQ�WXUQ��DHFW�WKH�WRWDO�ODQGHG�FRVW��

Every WRWDO�ODQGHG�FRVW�PRGHO�VKRXOG�WDNH�LQWR�DFFRXQW�D�UHJLRQȇV WUDQVSRUWDWLRQ�QHWZRUN�DQG�LWV�IXWXUH�LQIUDVWUXFWXUH�LQYHVWPHQW�SODQV�

There LV�RQO\�VR�PXFK�URRP�RQ�WKH�URDG�IRU�WUXFNV�

ΖI�\RXU�FRPSDQ\�QHHGV�WR�PRYH�FDUJR�DQG�JHW�LW�WR�WKH�FXVWRPHU�LQ�D�WLPHO\�DQG�FRVW�HHFWLYH�IDVKLRQ��LWȇV�FULWLFDO�WKHUH�EH�D�URDG�QHWZRUN�WKDW�FDQ�IDFLOLWDWH�WKDW��

6FKHGXOH�ȵH[LELOLW\�HTXDOV�FRVW�VDYLQJV�DQG�WKDW�DSSOLHV�WR�HYHU\�EXVLQHVV��

Time�LV�PRQH\�DQG�HYHU\�PLQXWH�D�SURGXFW�ZDLWV�LQ�D�OLQHXS�LW�HDWV�LQWR�SURȴW��

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Some other important questions to consider include:

• Is therH�DQ�LQWHUQDWLRQDO�DLUSRUW�DQG�ZKDW�NLQG�RI�FDUJR�VKLSSHUV�DQG � ��FRQQHFWLRQV�GRHV�LW�RHU"�

• Is there easy access to rail, or are those intermodal networks strategically � ��ORFDWHG�UHODWLYH�WR�ZDUHKRXVH�VSDFH"�

� ȏ�ΖV�WUDɝF�congestion a problem and will it cause shipping delays?

7UDQVLW�WLPH�WUDQVODWHV�LQWR�GROODUV�DQG�WKH�PRUH�HɝFLHQW�WKH�PRYHPHQW�RI�JRRGV�the more money that stays in your company’s pocket.

For�H[DPSOH��D�GDLO\����PLQXWH�GHOD\�RQ�D�WUXFN�FDQ�UHVXOW�LQ�D�ORVV�RI��������SHU�year, per truck. That adds up. Fast.

Whether LWȇV�PXQLFLSDO��SURYLQFLDO�RU�IHGHUDO�ȃ�every level of government has a KDQG�LQ�WKH�UHJXODWLRQ�RI�WKH�YDULRXV�PRGHV�RI�WUDQVSRUWDWLRQ��

*RYHUQPHQW�LQYHVWV�LQ�LQIUDVWUXFWXUH��LQȵXHQFHV�ODQG�XVH�DQG�VHWV�WD[�UDWHV�DQG�EXVLQHVV�VKRXOG�KDYH�D�YRLFH�LQ�WKRVH�GHFLVLRQV��

CollaborDWLQJ�ZLWK�DOO�OHYHOV�RI�JRYHUQPHQW�FDQ�EHQHȴW�\RXU�EXVLQHVV��

It’s iPSRUWDQW�WR�KDYH�D�UHVSHFWIXO�YRLFH�DW�WKH�GHFLVLRQ�PDNLQJ�WDEOH��DQG�HQOLJKWHQ�GHFLVLRQ�PDNHUV�DERXW�KRZ�HYHU\RQH�FDQ�EHQHȴW�ZKHQ�EXVLQHVV�EHQHȴWV�

Connect oU�SDUWLFLSDWH�ZLWK�LQGXVWU\�DVVRFLDWLRQV�ZKR�ZRUN�ZLWK�JRYHUQPHQWV�RI�DOO�OHYHOV�WR�IDFLOLWDWH�EXVLQHVV�DQG�LWV�QHHGV��

These groupV�ZLOO�DOVR�KDYH�NQRZOHGJH�RI�ZKDWȇV�KDSSHQLQJ�LQ�SDUWLFXODU�UHJLRQV�DQG�EH�DEOH�WR�SRLQW�\RX�WR�UHVHDUFK�DQG�LQIRUPDWLRQ�WKDW�FDQ�LQIRUP�\RXU�WRWDO�landed cost model.

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Chapter 5 How to Choose the best location for your business?

One oI�WKH�ȴUVW�VWHSV�LQ�FKRRVLQJ�D�ORFDWLRQ�LV�WR�EXLOG�D�7RWDO�/DQGHG�&RVW Model�EDVHG�RQ�LQERXQG�WUDQVSRUWDWLRQ��RFFXSDQF\��LQYHQWRU\�DQG�RXWERXQG�transportation.

Calculating�WKH�WRWDO�ODQGHG�FRVW�RI�PDWHULDOV�DQG�ȴQLVKHG�JRRGV�DUULYLQJ�IURP RVKRUH�VRXUFHV�LV�QRW�DOZD\V�DQ�HDV\�WDVN��

Though�WKLV�IXQGDPHQWDO�DVSHFW�RI�VXSSO\�FKDLQ�PDQDJHPHQW�LV�YHU\�LPSRUWDQW� WRR�PDQ\�EXVLQHVVHV�UHO\�RQ�VKRGG\�JXHVVZRUN�WKDW�RIWHQ�OHDGV�WR�IDLOHG�YHQWXUHV��

To VDIHJXDUG�\RXU�LQYHVWPHQWV��LWȇV�KHOSIXO�WR�XVH�D�ODQGHG�FRVW�FDOFXODWLRQ�PRGHO�WKDW�DFFXUDWHO\�SURMHFWV�WKH�WRWDO�FRVW�RI�VRXUFLQJ�PDWHULDOV�IURP�VWDUW�WR�ȴQLVK��

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Total Landed Cost ModelFor the purposes�RI�WKLV�DUWLFOH��ZH�KDYH�EXLOW�D�7RWDO�/DQGHG�&RVW�0RGHO.

INVENTORY: $4,765,206

INBOUND: $3,609,000

Total Landed Cost Model

OCCUPANCY: $1,248,000

OUTBOUND: $1,083,624

OUTBOUND 10.12%

OCCUPANCY 11.66%

INVENTORY 44.51%

INBOUND 33.71%

3OHDVH�QRWH�What the numbers used in the model are hypothetical.

:KHQ�GHYHORSLQJ�the Total Landed Cost Model, you will need to take into FRQVLGHUDWLRQ�IRXU�EURDG�EXFNHWV��2XWERXQG��2FFXSDQF\��ΖQYHQWRU\�DQG�ΖQERXQG��

Within each bucNHW��WKHUH�LV�D�FKHFNOLVW�RI�WKLQJV�\RX�QHHG�WR�FRQVLGHU�ZKHQ calculating your Total Landed Cost.

���287%2UND� ȏ�&RVWV��FDSDFLW\�DQG�GHOLYHU\�WLPH�IURP�\RXU�ORFDWLRQ�WR�DOO�RI�\RXU�FXVWRPHU � ��ORFDWLRQV��7KLV�LQFOXGHV�UDWHV�IRU�DOO�PRGHV��ΖW�DOVR�LQFOXGHV�UDWHV�IRU�)8// � ��758&.��/(66�7+$1�758&.�/2$'��/7/���VPDOO�SDFNDJH�SULFLQJ��HWF�

• When nRW�XVLQJ�FRPPRQ�FDUULHUV��DQG�\RX�RZQ�\RXU�RZQ�SULYDWH�IOHHW� � ��WKLQJV�VXFK�DV�FDSLWDO�HTXLSPHQW�FRVWV��GULYHU�ZDJHUV��IXHO�FRVWV��LQVXUDQFH� etc. will need to be considered.

Page 17: desk top

���2&&83$1&< • When FRQVLGHULQJ�RFFXSDQF\��WKH�IROORZLQJ�FRVWV�QHHG�WR�EH�DSSOLHG��OHDVH� � ��RZQ�RU�EXLOG��XWLOLWLHV��PDWHULDO�KDQGOLQJ�VXFK�DV�FRQYH\HU�EHOW�DQG�IRUN�OLIWV� � ��EXLOGLQJ�PDLQWHQDQFH��SURSHUW\�WD[�DQG�LQVXUDQFH�

• Other FRQVLGHUDWLRQV��ODERXU�FRVWV��WKLV�FDQ�EH�LQȵXHQFHG�E\�WKH�DYDLODELOLW\

���RI�KRXVLQJ�DQG�SULFH�DQG�DYDLODELOLW\�RI�SXEOLF�WUDQVLW��

���Ζ19(1725<� ȏ�ΖQYHQWRU\�LV�WKH�FRVW�RI�JRRGV�DQG�LQFOXGHV�DOO�FRVWV�ZLWKLQ�WKH�FDVK�WR�FORVH

cycle. This includes any interest paid on the purchase price.

• Other�FRVWV�LQFOXGH�FXVWRPV�DQG�WDULV�IRU�PRYLQJ�JRRGV�LQWR�D�QHZ � ��MXULVGLFWLRQ��LQVXUDQFH�DQG�*67�LQ�&DQDGD��

� ȏ�1HHG�WR�FRQVLGHU�WKHIW��GDPDJH�DQG�ORVV�DVVRFLDWHG�ZLWK�LQYHQWRU\��

���Ζ1%2UND • Costs, FDSDFLW\�DQG�GHOLYHU\�WLPH�IURP�DOO�VXSSOLHU�ORFDWLRQV�WR�\RXU�ORFDWLRQ�� � ��7KHVH�FRVWV�LQFOXGH�DOO�PRGHV�RI�WUDQVSRUWDWLRQ��ΖW�DOVR�LQFOXGHV�UDWHV�IRU � ��)8//�758&.��/(66�7+$1�758&.�/2$'��/7/���VPDOO�SDFNDJH�SULFLQJ��HWF�

• When�\RX�DUH�QRW�XVLQJ�FRPPRQ�FDUULHUV��DQG�\RX�RZQ�\RXU�RZQ�SULYDWH � ��ȵHHW��RWKHU�FRVWV�ZLOO�QHHG�WR�EH�FRQVLGHUHG�VXFK�DV�FDSLWDO�HTXLSPHQW�FRVWV� � ��GULYHU�ZDJHV��IXHO�FRVWV��LQVXUDQFH��HWF��

To ensXUH�VXFFHVV�ZKHQ�GHYHORSLQJ�\RXU�RZQ�ODQGHG�FRVW�PRGHO��LWȇV�QRW�DOZD\V�UHDVRQDEOH�WR�FDOFXODWH�\RXU�ȴQDO�FRVWV�GRZQ�WR�WKH�SHQQ\��

You wiOO�ZDQW�WR�SODQ�DKHDG�IRU�WKH�XQH[SHFWHG�E\�DGGLQJ�D�FRVW�VDIHW\�EXHU�WR�your model.

This ensureV�FRVWV�WKDW�KDYH�QRW�EHHQ�IRUHFDVWHG�FDWFK�\RX�FRPSOHWHO\�R�JXDUG��

ΖI�\RX�ZDQW to build an accurate landed cost model you will need to allow enough WLPH�IRU�D�WKRURXJK�SODQQLQJ�SURFHVV��

2QH�RI�WKH�EHVW�ZD\V�WR�SHUIHFW�WKH�SURFHVV�LV�WR�FKHFN�\RXU�PRGHOȇV�SUHGLFWLRQV�DJDLQVW�WKH�DFFXUDWH�HVWLPDWHV�DQG�LQYRLFHV�IRU�HYHU\�RQH�RI�\RXU�LPSRUWV��

You will aOVR�ZDQW�WR�XVH�UHDO�ZRUOG�GDWD�WR�UHȴQH�WKH�PRGHO�XQWLO�LW�RHUV�D�OHYHO�RI�accuracy that is suitable to your needs.

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Chapter 6Building�YV��%X\LQJ�YV��/HDVLQJ� understanding the best choice

This is oIWHQ�WKH�PRVW�GLɝFXOW�DQG�KRWO\�GHEDWHG�GHFLVLRQ�D�EXVLQHVV�ZLOO�PDNH EHFDXVH�RI�WKH�PDQ\�IDFWRUV�LQYROYHG��

%XLOGLQJ��EX\LQJ�RU�OHDVLQJ�LPSDFWV�FDQ�GUDPDWLFDOO\�DHFW�WRWDO�ODQGHG�FRVWV�DV�LW�WRXFKHV�HYHU\�DVSHFW�RI�WKH�VXSSO\�FKDLQ�ȃ�IURP�WKH�UHDO�HVWDWH�EURNHU�ZKRȇV� WU\LQJ�WR�PD[LPL]H�FDSLWDO�UHWXUQV�RQ�WKH�SRUWIROLR�WR�WKH�VXSSO\�FKDLQ�PDQDJHU�ZKRȇV�DFFRXQWDEOH�IRU�IXWXUH�RSHUDWLQJ�FRVWV�

So PDNLQJ�WKH�EHVW�GHFLVLRQ�IRU�\RXU�FRPSDQ\�LV�QRW�DQ�HDV\�DQVZHU��

Here are some tips to help you when deciding whether you should lease a larger RɝFH�VSDFH��EX\�DQ�H[LVWLQJ�EXLOGLQJ�RU�EXLOG�D�IDFLOLW\��

Page 19: desk top

1. Lease It

Image Credit: Roland Tanglao Creative Commons

Pros to leasing space

• The�DGYDQWDJHV�WR�OHDVLQJ�VSDFH�LQFOXGH�WKH�DELOLW\�WR�VLJQ�D�VKRUW�WHUP�RU long-term lease with an option to renew.

• It doesn’t tie up needed capital.

• You can take DGYDQWDJH�RI�D�EXLOGLQJȇV�FRPPRQ�DUHDV�VXFK�DV�D�FRQIHUHQFH � ��URRP�DQG�ȴWQHVV�IDFLOLW\��ΖI�WKH�VWUXFWXUH�LV�ODUJH�HQRXJK��\RX�PD\�EH�DEOH�WR � ��PRYH�ZLWKLQ�WKH�EXLOGLQJ�DV�\RXU�EXVLQHVV�H[SDQGV��

• Your lanGORUG�WDNHV�FDUH�RI�PDNLQJ�WKH�VSDFH�ȴW�\RXU�QHHGV�DQG�KDQGOHV � ��RZQHUVKLS�UHVSRQVLELOLWLHV�VXFK�DV�SURSHUW\�WD[HV��LQVXUDQFH�DQG�EXLOGLQJ maintenance.

� ȏ�ΖI�\RX�SDUWQHU�ZLWK�D�UHDO�HVWDWH�GHYHORSHU�ODQGORUG��\RX�FDQ�ZRUN�WR�KDYH�D structure built to suit your needs and lease space in that building. This can � ��RHU�WKH�EHVW�RI�ERWK�ZRUOGV�

Cons to leasing space

• Finding�WKH�ULJKW�DPRXQW�RI�VSDFH�LQ�H[DFWO\�WKH�ULJKW�ORFDWLRQ��<RX�PLJKW also lose your lease to a higher bidder or building sell-out, and you’re at the � ��PHUF\�RI�WKH�ODQGORUG�LQ�VHWWLQJ�UHQW�DQG�UHVWULFWLRQV�RQ�EXLOGLQJ�XVH�

Page 20: desk top

2. Buy It3URV�WR�%X\LQJ

� ȏ�%X\LQJ�D�EXLOGLQJ�RHUV�WKH assurance that you get what you see.

• You FDQ�LPPHGLDWHO\�HYDOXDWH�WKH � ��EXLOGLQJȇV�EHQHȴWV�YHUVXV�FRVW��

• You’ll aOVR�UHFHLYH�WKH�EHQHȴWV�RI � ��GHSUHFLDWLRQ��LQWHUHVW��LQYHVWPHQW � ��WD[�FUHGLW�WR�VKHOWHU�LQFRPH��DQG � ��DSSUHFLDWLRQ�RI�YDOXH�HQDEOLQJ�\RX � ��WR�SURȴWDEO\�VHOO��WUDGH�RU�UHȴQDQFH � ��WKH�EXLOGLQJ�LQ�WKH�IXWXUH��

� ȏ�ΖI�\RX�UXQ�D�IDPLO\�RZQHG�EXVLQHVV � ��RU�ZDQW�WR�OHDYH�OHJDF\��RZQLQJ�D � ��EXLOGLQJ�LV�DQ�LQYHVWPHQW�IRU�WKH � ��IXWXUH�

Cons to Buying

• The space�PD\�KDYH�WR�EH�UHPRGHOOHG�WR�ȴW�\RXU�QHHGV�DQG�WKDW�FDQ translate into much higher costs than the purchase price alone.

• It may nRW�EH�LQ�WKH�H[DFW�ORFDWLRQ�\RX�GHVLUH�

• The EXLOGLQJ�FRXOG�KDYH�VWUXFWXUDO�SUREOHPV�DQG�PD\�QRW�EH�ZLUHG�IRU � ��FRPSXWHUV�RU�RSWLPXP�HQHUJ\�HɝFLHQF\��

• Your compan\�FRXOG�H[SHULHQFH�DQ�LPPHGLDWH�FDVK�GUDLQ�ZKLOH�\RXȇUH � ��UHQRYDWLQJ�WKH�EXLOGLQJ�DQG�VWLOO�RFFXS\LQJ�\RXU�FXUUHQW�VSDFH��

• You’ll also neeG�WR�KDQGOH�WKH�RZQHUVKLS�LVVXHV�RI�XWLOLWLHV��LQVXUDQFH� � ��SURSHUW\�WD[HV�DQG�RQJRLQJ�PDLQWHQDQFH�VXFK�DV�FOHDQLQJ��VQRZ�UHPRYDO� and lawn care.

�ȏ�7LHV�XS�FDSLWDO�WKDW�PLJKW�RWKHUZLVH�EH�XVHG�LQ�LQYHVWLQJ�LQ�\RXU�EXVLQHVV��

Photo credit: -H�6WYDQ Creative Commons

Page 21: desk top

3. Build It

3URV�WR�%XLOGLQJ

� ȏ�$�JRRG�FRQVWUXFWLRQ�PDQDJHU�FDQ�DFW�DV�\RXU�DGYLVRU��KHOSLQJ�FRRUGLQDWH � ��VXEFRQWUDFWRUV�DQG�DOOHYLDWLQJ�PDQ\�RI�WKH�KHDGDFKHV��

• You can incOXGH�\RXU�ZLVK�OLVW�RI�DPHQLWLHV�VXFK�DV�KLJK�VSHHG�ΖQWHUQHW access, sophisticated heating and cooling systems.

• You can design a contemporary or more traditional layout that compliments � ��\RXU�SUHIHUHQFHV��

• The design�FDQ�EH�WDLORUHG�WR�UHȵHFW�\RXU�FRPSDQ\�EUDQG��

• Low intereVW�UDWHV�FDQ�SURYLGH�D�JRRG�LQFHQWLYH�WR�EXLOG���

�Cons to Building

• You may KDYH�VWUHVV�WKDW�RIWHQ�FRPHV�ZLWK�FKDQJLQJ�FRPSOHWLRQ�GDWHV��

ȏ�ΖI�D�GRZQWXUn in the economy happens, owning a building means you’ll

��VWLOO�EH�IRUFHG�WR�FRQWLQXH�SD\LQJ�WKH�ȴ[HG�FRVWV�RI�EXLOGLQJ�RZQHUVKLS

and management.

• Similar WR�EX\LQJ�D�EXLOGLQJ��\RXȇOO�KDYH�PDQ\�XS�IURQW�H[SHQVHV�DQG�ZLOO

��XVXDOO\�EH�UHTXLUHG�WR�SXW�D�ODUJH�VXP�RI�PRQH\�GRZQ�LQ�RUGHU�WR

begin work.

• &KRLFH�RQ�WKH�ORFDWLRQ�RI�\RXU�EXLOGLQJ��LI�SURSHUO\�]RQHG�ODQG�LQYHQWRU\�DYDLODEOH��

• 7LPH�ODJ�EHWZHHQ�GHFLVLRQ�WR�EXLOG�WR�RFFXSDQF\�ZLWK�ULVN�RI�FRVW�RYHUUXQV���LQ�WKH�GHVLJQ�DQG�FRQVWUXFWLRQ�SKDVH�

Page 22: desk top

� ȏ�<RXȇOO�KDYH�WR�GHDO�ZLWK�ȴQDQFLQJ��ȴQGLQJ�WKH�EHVW�ORFDWLRQ��DQG�SHUPLW � ��DQG�]RQLQJ�UHTXLUHPHQWV��ZKLFK�FDQ�WDNH�VHYHUDO�PRQWKV�DQG�LQ�VRPH � ��FDVHV�\HDUV�WR�ȴQDOL]H��

• You’ll DOVR�KDYH�RZQHUVKLS�LVVXHV�RI�WD[HV��LQVXUDQFH�DQG�PDLQWHQDQFH�

Surround yourself with the right people

ΖI�\RX�DUH�QRW�D�FRPPHUFLDO�UHDO�HVWDWH�H[SHUW��\RX�ZLOO�QHHG�KHOS��7KDWȇV�ZK\�LWȇV�LPSRUWDQW�WR�VXUURXQG�\RXUVHOI�ZLWK�WKH�ULJKW�WHDP�RI�H[SHUWV��7KH\�FDQ�KHOS�\RX�determine the right time to buy or sell, the right locations to consider, and the nuts DQG�EROWV�RI�FORVLQJ�WKH�GHDO��

Here are some of the experts you may consider contacting:

• Accountant:�$Q�DFFRXQWDQW�FDQ�KHOS�\RX�ȴJXUH�RXW�ZKDW�\RXU�EXVLQHVV � ��FDQ�DRUG�DQG�DQDO\]H�WKH�WD[�DQG�RSHUDWLQJ�EXGJHW�EHQHȴWV�

• /DZ\HU� $�ODZ\HU�FDQ�KHOS�\RX�FRPSOHWH�WKH�WUDQVDFWLRQ��QHJRWLDWLQJ � ��ZLWK�WKH�VHOOHU�DQG�OHQGHU�RQ�\RXU�EHKDOI�

• Commercial broker:�$�UHDO�HVWDWH�EURNHU�FDQ�KHOS�\RX�LGHQWLI\�SRWHQWLDO � ��SURSHUWLHV�DQG�ZKDW�\RX�FDQ�DRUG�

• Mortgage broker: $�OHQGHU�RU�PRUWJDJH�EURNHU�ZLOO�KHOS�\RX�VRUW�WKURXJK � ��ȴQDQFLQJ�RSWLRQV�

ΖWȇV�D�FRPSOH[�decision-making process.

It may be aRUGDEOH�WR�EX\�ODQG�LQ�WKH�PLGGOH�RI�QRZKHUH�DQG�EXLOG�\RXU�RZQ

ZDUHKRXVH��EXW�ZKHQ�\RX�FRQVLGHU�DOO�IDFWRUV�ZLWK�WRWDO�ODQGHG�FRVW��WKLV�RSWLRQ�PD\�QRW�EH�DV�DRUGDEOH�

What’s ecoQRPLFDO�IRU�RQH�EXVLQHVV�PLJKW�QRW�EH�IRU�DQRWKHU��

In the HQG��WKHUH�LV�QR�ȊRQH�VL]H�ȴWV�DOOȋ�VROXWLRQ�WR�WKH�TXHVWLRQ�RI�ZKHWKHU�\RX�EXLOG��EX\�RU�OHDVH��(DFK�RSWLRQ�UHTXLUHV�D�WKRURXJK�DQDO\VLV�

•�Project Manager: :LWK�ORFDO�NQRZOHGJH��FDQ�OHDG�\RXU�EXVLQHVV�WHDPWKURXJK�RFFXSDQF\�ILW�XS�RU�EXLOG�FRQVLGHUDWLRQV�VSHFLILF�WR�WKH�ORFDWLRQ�

��DQG�\RXU�EXVLQHVV�PRGHO�

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Chapter 77KH�LPSRUWDQFH of understanding &DQDGDȇV�ORFDO�ODERXU�PDUNHW�DQG�ZKDW�it means to you

Canada’s comiQJ�HFRQRPLF�KHDGDFKH��$�VHULRXV�VKRUWDJH�RI�VNLOOHG�ZRUNHUV��

$FFRUGLQJ�WR�(PSOR\PHQW�DQG�6RFLDO�'HYHORSPHQW�0LQLVWHU�-DVRQ�.HQQH\, the VKRUWDJH�RI�VNLOOHG�ZRUNHUV�LQ�PDQ\�VHFWRUV�ZLOO�EH�RQH�RI�&DQDGDȇV�JUHDWHVW�IXWXUH�HFRQRPLF�FKDOOHQJHV�LQ������DQG�EH\RQG�

Skills shRUWDJHV�DUH�ORRPLQJ�LQ�VSHFLȴF�VHFWRUV�VXFK�DV�FRQVWUXFWLRQ��PLQLQJ� petroleum, transportation and logistics.

These inGXVWULHV�ZLOO�IDFH�VHULRXV�VKRUWDJHV�RI�VNLOOHG�ZRUNHUV�RYHU�WKH�QH[W�GHFDGH�unless immediate measures are taken.

7KH�&DQDGLDQ�&KDPEHU�RI�&RPPHUFH�HVWLPDWHV�WKDW�E\�������WKH�FRXQWU\�ZLOO�IDFH�����PLOOLRQ�YDFDQFLHV�IRU�VNLOOHG�MREV��

7KDWȇV�Must around the corner.

Students ma\�QRW�EH�DZDUH�RI�HGXFDWLRQ�WUDLQLQJ�IRU�LQGXVWULHV�ZKHUH�WKHUH�LV SURMHFWHG�WR�EH�D�FKURQLF�VKRUWDJH�LQ�LPSRUWDQW�VNLOOV��

2QH�RI�WKHVe industries is Supply Chain Management.

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What is Supply chain management?

Supply chaLQ�PDQDJHPHQW�LV�WKH�PDQDJHPHQW�RI�D�QHWZRUN�RI�LQWHUFRQQHFWHG�EXVLQHVVHV�LQYROYHG�LQ�WKH�SURYLVLRQ�RI�SURGXFWV�DQG�VHUYLFHV�UHTXLUHG�E\�WKH�HQG�customers in a supply chain.

Supply�FKDLQ�PDQDJHPHQW�VSDQV�DOO�PRYHPHQW�DQG�VWRUDJH�RI�UDZ�PDWHULDOV� ZRUN�LQ�SURJUHVV�LQYHQWRU\�DQG�ȴQLVKHG�JRRGV�IURP�SRLQW�RI�RULJLQ�WR�SRLQW�RI consumption.

In other�ZRUGV��VXSSO\�FKDLQ�PDQDJHPHQW�LV�DQ\�HRUW�WR�PRYH�FDUJR��

Supply Chain�0DQDJHPHQW�LV�FRPPRQO\�UHIHUUHG�WR�DV�WUDQVSRUWDWLRQ�DQG�ORJLVWLFV�

Supply solutions?

What are�VRPH�RI�WKH�LPPHGLDWH�VROXWLRQV�WKDW�DUH�EHLQJ�SXW�LQ�SODFH�WR�DGGUHVV�WKLV�IXWXUH�ODERXU�VKRUWDJH"

���ΖQWURGXFe more women in the competition for supply chain talent

The supply chain sector has traditionally been male dominated, but current trends LQ�VRPH�SDUWV�RI�WKH�VHFWRU�VKRZ�VLJQV�RI�FKDQJH��

There is a moYHPHQW�DIRRW�WR�UHFUXLW�PRUH�ZRPHQ�WR�WKH�VHFWRU��DV�VXSSO\�FKDLQ�ZRUN�LV�VWURQJO\�VXLWHG�WR�IHPDOH�ZRUNHUV��

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6RIW�VNLOOV�VXFK�DV�FROODERUDWLRQ��FUHDWLYLW\�DQG�SUREOHP�VROYLQJ�DUH�LQ�KLJK�GHPDQG�E\�HPSOR\HUV�DQG�PDQ\�ZRPHQ�DOUHDG\�LQ�WKH�LQGXVWU\�KDYH�H[SUHVVHG�LQWHUHVW�LQ�WKLV�W\SH�RI�ZRUN��

+RZHYHU��LW�ZRXOG�EH�QDLYH�WR�WKLQN�WKDW�ZKDW�LV�DW�VWDNH�KHUH�LV�PHUHO\�D�ȆZRPHQȇV�issue’.

ΖI�&DQDGD�LV�WR�UHPDLQ�FRPSHWLWLYH�LQ�D�G\QDPLF�JOREDO�PDUNHW��DV�*Z\Q�0RUJDQ�states in a recent Globe and Mail article��Ȋ*LYHQ�WKH�VKRUWDJH�RI�VNLOOHG�ZRUNHUV� DQG�WKH�SHQGLQJ�UHWLUHPHQW�RI�WKRXVDQGV�PRUH�DFURVV�WKH�FRXQWU\��&DQDGLDQ EXVLQHVVHV�DQG�JRYHUQPHQWV�VKRXOG�YLHZ�HYHU\�SHUVRQ�DV�D�SRWHQWLDO�FRQWULEXWRU WR�WKH�ZRUNIRUFH�ȋ

The WI6&��:RPHQ�LQ�6XSSO\�&KDLQ��LQLWLDWLYH�VHHNV�WR�FUHDWH�DZDUHQHVV�RI�WKH VXSSO\�FKDLQ�VHFWRU�DQG�RI�LWV�YDVW�FDUHHU�RSSRUWXQLWLHV�IRU�LQGLYLGXDO�ZRUNHUV��WISC also seeks to encourage employers to consider their retention and succession VWUDWHJLHV�WKDW�DGGUHVV�WKH�VSHFLȴF�QHHGV�RI�WKH�ZRPHQ�LQ�WKHLU�RUJDQL]DWLRQV�

���0DNH�D�GLHUHQFH�XVLQJ�WUDQVIHUDEOH�VXSSO\�FKDLQ�VNLOOV

Just as the supply chain sector is broad, so too can supply chain skills and NQRZOHGJH�EH�WUDQVIHUUHG�DFURVV�DOO�RWKHU�VHFWRUV��LQFOXGLQJ�SXEOLF�DQG QRW�IRU�SURȴW�VHFWRUV��

Those�LQ�WKH�ȴHOG�DUH�SRVLWLYH�DERXW�WKH�VHFWRU�DQG�DUH�SURXG�WR�EH�HQJDJHG�LQ�ȆZRUN�WKDW�PDWWHUV�ȇ

Skills rHFRPPHQGHG�E\�HPSOR\HHV�IRU�VXFFHVV�LQ�VXSSO\�FKDLQ�MREV�LQFOXGH�

• Financial planning

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• Forecasting� ȏ�.QRZOHGJH�RI�LQWHUQDWLRQDO�EXVLQHVV�SUDFWLFHV� ȏ�.QRZOHGJH�RI�ODZV�DQG�UHJXODWLRQV� ȏ�.QRZOHGJH�RI�ORJLVWLFV��VXSSO\�FKDLQ�PDQDJHPHQW�DQG�WUDQVSRUWDWLRQ • Mechanical skills� ȏ�:RUNȵRZ�RSWLPL]DWLRQ • General management and business • Languages

7KH�VXSSO\�chain sector labour force by sub-functions are:

• Senior management� ȏ�/RJLVWLFV�LQIRUPDWLRQ�V\VWHPV • Warehousing • Transportation� ȏ�ΖQYHQWRU\�PDWHULDO�&RQWURO� ȏ�3XUFKDVLQJ • Marketing and Sales� ȏ�&XVWRPHU�6HUYLFH

���&DUHHU�SDWKZD\V�DQG�WUDMHFWRULHV

Photo Credit: Dave McLean Creative Commons

$FURVV�&DQDGD��ZH�DUH�IRUWXQDWH�WR�KDYH�D�QXPEHU�RI�HGXFDWLRQ�SURYLGHUV�RHULQJ�D�UDQJH�RI�OHDUQLQJ�RSWLRQV�WR�WKRVH�ZKR�ZLVK�WR�HVWDEOLVK�RU�H[SDQG�WKHLU�VXSSO\�chain knowledge and skills.

These�RSWLRQV�LQFOXGH�SRVW�VHFRQGDU\�FHUWLȴFDWHV�DQG�GLSORPDV��GHJUHHV�DQG graduate studies.

Linked to these programs are apprenticeship and industry training programs and PXOWLSOH�SURIHVVLRQDO�DFFUHGLWDWLRQ�SURJUDPV�IRU�WKRVH�DOUHDG\�ZRUNLQJ�LQ�WKH�ȴHOG�

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A helpful checklist when calculating total landed cost7RWDO�ODQGHG�FRVW�LV�WKH�WRWDO�FRVW�RI�D�SURGXFW�EH\RQG�WKH�UDZ�PDWHULDOV��

CalculaWLQJ�WKH�WRWDO�ODQGHG�FRVW�PXVW�WDNH�LQWR�DFFRXQW�HYHU\WKLQJ�IURP�WKH�FRVW�RI�SURGXFWLRQ��WR�ER[LQJ�XS�WKH�SDFNDJH��SXWWLQJ�LW�RQ�WKH�EDFN�RI�D�WUXFN��VHQGLQJ�LW�WR�LWV�XOWLPDWH�GHVWLQDWLRQ�ȃ�DQG�HYHU\WKLQJ�LQ�EHWZHHQ���

There aUH�IRXU�FRVW�FDWHJRULHV�ȃ�ΖQERXQG�WUDQVSRUWDWLRQ��2FFXSDQF\��ΖQYHQWRU\�and Outbound transportation — that a total landed cost model should calculate. It’s not always an easy task but it is a critical one.

Here’s a handy checklist to help highlight the most important things to consider.

1. Inbound Transportation� 2ULJLQ�GHVWLQDWLRQ�SDLUV��ODQHV��VXFK�DV�6KDQJKDL�WR�:LQQLSHJ�RU�6KDQJKDL � WR�7RURQWR��*DWKHU�WKLV�LQIRUPDWLRQ�IRU�HYHU\�ODQH�

� $OO�PRGHV�RI�WUDQVSRUWDWLRQ

Capacity�IURP�VXSSOLHU�ORFDWLRQ�WR�\RXU�ORFDWLRQ

Duration

&RVW�5DWH

Other variables to consider:

Rates IRU�IXOO�WUXFN��OHVV�WKDQ�WUXFNORDG��/7/��DQG�VPDOO�SDFNDJH�SULFLQJ

Many FRPSDQLHV�KDYH�PXOWLSOH�FDUULHUV�IRU�HDFK�ODQH�VR�\RX�ZDQW�WR�EH � VXUH�\RX�FRYHU�HDFK�ODQH�

Seasonal rates, where they apply

� $GGLWLRQDO�VXUFKDUJHV��GXWLHV��WDULV��WD[HV��EURNHUDJH�IHHV�DQG�LQVXUDQFH costs

� 3RUW�WUDQVSRUWDWLRQ�DFFHVV�DQG�HJUHVV��PDULQH�SRUW�YHUVXV�DQ�LQODQG�SRUW�

� 3UR[LPLW\�RI�VXSSOLHUV�

Strategic�VRXUFLQJ�RSSRUWXQLWLHV��LI�DGGLQJ�D�QHZ�ORFDWLRQ��

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2. Occupancy

Ownership YV��WKLUG�SDUW\�VWRUDJH

� %XLOG��lease or buy

� 8WLOLWLHV

Material KDQGOLQJ��VXFK�DV�FRQYH\HU�EHOW�DQG�IRUN�OLVWV

� %XLOGLQJ�maintenance

� 3URSHUW\�WD[�DQG�LQVXUDQFH

Distribution points

Labour�DYDLODELOLW\��ZDJH�UDWHV��LQȵXHQFHG�E\�KRXVLQJ�DYDLODELOLW\�DQG � SULFH�DQG�SXEOLF�WUDQVLW�

3. Inventory (cash to close cycle)

Capital costs

� 7LPLQJ�RI�product ownership

Costs assoFLDWHG�ZKHQ�\RXU�LQYHQWRU\�LV�LQ�WUDQVLW��VDIHW\�VWRFN�DQG cycle stock

� ([FKDQJH rates

� 7UDGH�ȴnancing options

4. Outbound Transportation

From your�IDFLOLW\�WR�\RXU�FXVWRPHU��*DWKHU�WKLV�LQIRUPDWLRQ�IRU�HYHU\�ODQH

� $OO�PRGHV�RI�WUDQVSRUWDWLRQ

� &DSDFLW\�DQG�GHOLYHU\�WLPH�IURP�VXSSOLHU�ORFDWLRQ�WR�\RXU�ORFDWLRQ

Duration

� &RVW�5DWH

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Here are some other variables to consider:

5DWHV�IRU�IXOO�WUXFN��OHVV�WKDQ�WUXFNORDG��/7/��DQG�VPDOO�SDFNDJH�SULFLQJ

Man\�FRPSDQLHV�KDYH�PXOWLSOH�FDUULHUV�IRU�HDFK�ODQH�VR�\RX�ZDQW�WR�EH�VXUH�\RX FRYHU�HDFK�ODQH

Seasonal rates, where they apply

$GGLWLRQDO�VXUFKDUJHV��WD[HV��HJ��IXHO�WD[HV���DQG�LQVXUDQFH�FRVWV

7LPH�VHQVLWLYH�QHHGV�VXFK�WUDɝF��FXVWRPHU�GHOLYHU\�ZLQGRZV

3UR[LPLW\�WR�FXVWRPHUV

$�IHZ�ȴQDO�SRLQWHUV

Once yoX�KDYH�DQVZHUHG�WKH�DERYH�TXHVWLRQV��\RX�ZLOO�KDYH�D�JRRG�XQGHUVWDQGLQJ�RI�WKH�FRVW�RI�JHWWLQJ�\RXU�SURGXFW�WR�\RXU�FXVWRPHU�

You will want�WR�UHFDOFXODWH�WKHVH�FRVWV�EDVHG�RQ�WKH�YDULRXV�ORFDWLRQV�\RX�DUH�WHVWLQJ�LQ�your supply chain network.

0RUH�IUHTXHQWO\��FRPSDQLHV�DUH�QRZ�FDOFXODWLQJ�D�WULSOH�ERWWRP�OLQH�WR�DOORZ�IRU�YDULDEOHV�VXFK�DV�&2��DQG�VRFLR�HFRQRPLF�LPSDFWV��

You will want to conVLGHU�LI�DGGLWLRQDO�FDOFXODWLRQV�WR�DOORZ�IRU�WKHVH�W\SHV�RI�YDULDEOHV�LQ�D�second and third bottom line.

Many companLHV�DOVR�LQFOXGH�ULVN�DVVHVVPHQWV��UHTXLUH�ȵH[LELOLW\�LQ�QHWZRUN�GHVLJQ��DQG�agility.

Depending on�\RXU�VXSSO\�FKDLQ��FRVW�PD\�EH�RQH�LPSRUWDQW�SULRULW\�RI�D�PXOWL�YDULDEOH decision on network design.

Acknowledgements

&DOJDU\�5HJLRQDO�3DUWQHUVKLS�ZRXOG�OLNH�WR�WKDQN�WKH�IROORZLQJ�IRU�WKHLU�FRQWULEXWLRQV�WR WKLV�H�ERRN�

Reg Johnston��3��(QJ���5-�7/�&RQVXOWLQJ�/WG�Corrie Banks, Triskele Logistics Ltd.9DQ�+RUQH�ΖQVWLWXWH�DW�WKH�8QLYHUVLW\�RI�&DOJDU\�Jim Brown��-56%�/RJLVWLFV�&RQVXOWLQJ�/WG�