7 Things to Know About Warehousing in Canada

In recent years, there has been a notable surge in foreign companies venturing into the Canadian market. This surge provides consumers with access to products that were previously unavailable or difficult to find at home. In this post we will look at the 7 Things to Know About Warehousing in Canada.

This trend has prompted many U.S. distributors and retailers to reflect on their business model. As they reflect, they question whether they should ship their products to Canada or establish a local presence there. Each of these options has its unique set of challenges and implications.

The demand for products of all types has been rapidly growing among Canadian consumers. Growing and outpacing that in the U.S. and other countries, particularly following the recent economic downturn. 

After grappling with low domestic earnings for some time, many U.S. companies have turned their focus northward. Northward seeking business opportunities in Canada. If your business is in a similar position, it is crucial to evaluate the key aspects of warehousing in Canada. Thus, here are seven vital considerations to keep in mind:

• The benefits of providing goods to Canadians

Even though the Canadian market is smaller than that of the U.S., Canada offers a favourable landscape for U.S. companies. It is characterized by minimal entry barriers, making it a compelling choice for those seeking growth. 

The close geographical proximity, shared language, and established free trade agreement facilitate a seamless business environment. One that enhances trade relations between the two nations. 

However, entering the Canadian market also comes with its own set of costs and considerations. Therefore, it is important to reflect on several key questions before leaping fully into the Canadian market. 

As a U.S. company, examine the potential benefits of selling across the border first on a per-order basis. Next, consider how easy it will be to forge partnerships with Canadian vendors and suppliers through wholesale distribution. 

Additionally, ask yourself if there an option for your business to establish a Canadian warehouse and supply chain? Finally, think about your ultimate goal in Canada. Does it involves launching a retail or wholesale operation there that is akin to giants like Target or Walmart? 

Before you embark on your Canadian expansion, it is essential to thoughtfully address each of these points. Gaining clarity regarding these matters will enable you to navigate the market more effectively and lead to better success.

• Warehousing and 3PL solutions in Canada

Regardless of the size of your business, setting up warehouses and distribution operations in Canada presents substantial opportunities. Establishing facilities in major cities like Toronto and Vancouver, can significantly enhance market presence and improve your logistics efficiency. 

Integration with distribution and logistics firms allows for a cohesive approach to order fulfillment. They ensure your products move swiftly and efficiently through the supply chain. 

In Vancouver, for instance, third-party logistics (3PL) providers can handle all aspects of inventory management and final delivery. This enables your U.S. company to serve Canadian customers without needing extensive local infrastructure.

Similarly, in Toronto, specialized warehousing and distribution services cater to the distinct needs of the Canadian market. They facilitate swift access to a wider consumer base. 

While there are certain complexities, such as customs and taxes, entering the Canadian market is less daunting than one might think. With strategic partnerships and effective operational plans, you can successfully leverage Canada’s dynamic consumer market. Now you’re paving the way for growth and success.

• Storage and inventory management with 3PL providers in Canada

When a shipment arrives at a 3PL warehouse, the process kicks off with warehouse specialists meticulously processing the delivery. They verify each item against the accompanying documentation to ensure that what you claim to have sent matches what has been received. This initial check is crucial for maintaining accuracy and accountability. 

Once the shipment is verified, the specialists proceed to stock and organize your inventory within the warehouse. Items are carefully placed in designated areas, where they will remain until sold or until you decide to withdraw them. This efficient organization helps streamline future order fulfillment and minimizes retrieval time. 

As your products are stored, you will receive timely notifications confirming their availability. This allows you to start selling them without delay. Effective inventory management is paramount in this process. Why? Because it prevents stock-outs and ensures you have real-time visibility into your inventory.

With accurate tracking and prompt notifications, you can make informed decisions. Decisions about restocking and inventory turnover. This ultimately enhances your business’ responsiveness to market trends and customer needs.

• Capabilities of 3PL warehouses

As demand for your products grows among Canadian customers or retailers, it is essential to have your inventory ready for quick fulfillment. This means that the warehouse will efficiently dispatch goods to your Canadian merchants as needed. Thus, responding to orders in a timely manner.

Even if you are still taking online or email orders, your warehousing partner should be equipped to pick and pack your products and ship them directly to those customers. 

Many 3PL providers specialize in the concept of drop-shipping, which allows them to fulfill orders on your behalf. Essentially, they send products directly to your customers under your brand name. This eliminates the need for you to handle the logistics yourself. This arrangement not only saves you time and resources, but also helps you maintain a lean operation.

In addition, partnering with a logistics and warehousing service can significantly reduce your shipping costs. These 3PL companies often offer competitive transportation rates, including discounts on courier services and favourable cargo rates.

By leveraging their established networks and expertise, you can optimize your shipping processes and enhance customer satisfaction.  All of this while keeping your operational costs in check.

• Flexibility in warehouse space and pricing

Establishing operations in Canada can be achieved without the burden of a significant upfront investment. Partnering with a 3PL warehouse allows your business to grow in tandem with your evolving needs.

These warehousing partners typically offer adaptable solutions. Solutions that allow you to modify your space requirements based on seasonal fluctuations or changes in overall demand. 

In addition, your expenses are closely tied to the number of orders you fulfill. As your sales volume increases, and you maintain higher stock levels, your costs will reflect that growth. This alignment of costs provides a risk-opposed model for your company as it enters the Canadian market. 

This scalability of operations is a major advantage of working with a 3pl warehouse. As your business expands or contracts, you can easily adjust your warehousing space and services. 

This dynamic approach not only reduces financial risks, but also positions your company to respond swiftly to market changes. A smart strategy if you are looking to establish a foothold in Canada.

• Strategic locations for warehousing in Canada

When selecting a location for your warehouse in Canada, it is crucial to consider factors such as market accessibility. With a population of approximately 41 million, Canada offers a wealth of potential customers. 

The Greater Toronto Area (GTA), which encircles Lake Ontario, stands out as Canada’s most populous region. Referred to as the “Golden Horseshoe.” 

Around 9 million people reside in this area, creating a market that rivals some of the largest in the U.S. Within the GTA, Burlington, Ontario, emerges as a prime choice for setting up your Canadian fulfillment operations. 

Strategically located in southwest Ontario, Burlington offers easy access to major highways. It’s also a short drive from Toronto Pearson International Airport, facilitating efficient distribution and logistics. 

In addition to Burlington, cities, such as Vancouver, Montreal, Mississauga, and Brampton, provide excellent warehousing opportunities.  

Vancouver, for instance, is known for its bonded warehouses.  These offer specific advantages for companies dealing with customs. Montreal, on the other hand, presents robust warehousing solutions to serve the eastern Canadian market. Mississauga and Brampton benefit from their close proximity to Toronto.

• Multiple location warehousing in Canada and its benefits

Identifying the location of your target customers is crucial for optimizing your logistics strategy.

If Canada is your primary target, or if you are looking to reach customers around the globe, having multiple warehouses strategically situated near your customers enhance your operations. This setup not only minimizes shipping costs, but also significantly reduces delivery times. This ensures your products reach customers quickly and efficiently. 

One of the key advantages of establishing fulfillment centres in your customers’ country is the elimination of customs fees. Fees which can add unnecessary expenses and delays. For example, companies like ShipBob and ShipMonk have focused their operations primarily within the United States. They rely on centralized warehouses to service U.S. customers. 

In contrast, Amazon’s fulfillment programs, including Fulfillment by Amazon (FBA) and Amazon Web Services (AWS) operate exclusively within the U.S. This showcases the effectiveness of localized warehousing. 

For businesses targeting the European market, Huboo operates a warehouse in the UK. This enables efficient service for its 3PL operations across Europe. By adopting a similar approach and investing in multiple warehouses, businesses can enhance customer satisfaction while maintaining a competitive edge in logistics.

Expert Warehousing in Canada With Wills Transfer Limited

If you are planning on expanding from the U.S. into the Canadian market, it is crucial to work with reliable warehousing fulfillment in Canada that you can count on to take your business abroad to the next level. This is exactly what Wills Transfer Limited can offer.

We have provided innovative logistics solutions that contribute to our customers’ success for over 75 years. We own and operate six major distribution centres that are strategically spread across Eastern Ontario. Centres that are well-positioned to serve Toronto, Montreal, Ottawa, Western Quebec, and Cornwall. Some of Canada’s biggest consumer hubs.

At Wills Transfer Limited, we are a one-stop shop, as we offer a huge spectrum of 3PL services, including pick and pack services, kitting, cross-docking, inventory management, refrigerated storage, and shunting services.

For more information about our top-notch warehousing in Canada, or to learn more about the various 3PL services we provide to ease your business’ transition into the Canadian market, call Wills Transfer Limited at 613-704-7549 or contact us here.