The rebound of the U.S. dollar has once again made Canada a source of potential values for U.S. businesses in search of supplies and raw materials. But as many U.S. businesses are finding out, any cost savings can be wiped out by higher than expected logistics costs and poorly executed delivery plans.

A new white paper by Purolator USA, "Imports Supply Chain Logistics," points out the pitfalls that can occur unless cross border logistics are entrusted to an experienced transportation provider.

The paper discusses in detail four major issues that, if not taken into consideration by U.S. businesses, can result in significantly higher logistics fees, and less than smooth delivery processes:

• Canadian logistics tend to be more costly than U.S. services. Many U.S. businesses leave the issue of logistics to the Canadian business from which they purchase their goods. In fact though, Canadian logistics costs can be as much as 30 percent higher than in the U.S. So right off the bat, a U.S. business that allows a Canadian provider to handle logistics could potentially wipe out all expected savings, before the goods even start their trip to the U.S.
• Lack of U.S. distribution networks can leave goods stranded. Another potential danger of using an inexperienced cross border provider is the lack of established networks within the U.S. A Canadian provider may be able to transport goods to the border, but unable to provide delivery within the U.S. As a result, goods cleared for entry into the U.S. often sit idle waiting for a third party carrier to pick them up and complete the U.S. leg of their journey.
• Border Clearance Process is complicated and bureaucratic. Managing the U.S. and Canadian customs and border clearance processes can be a complicated and tricky process even for the most experienced logistics providers. But for inexperienced providers, the process can be overwhelming. Transporting goods from Canada involves compliance with dozens of U.S. and Canadian regulatory and procedural requirements. If handled by an experienced logistics provider, the process can be smooth and seamless - almost a non-issue. Unfortunately, too many U.S. businesses have had their shipments denied entry, or subject to excessive delays and fines, because of compliance errors by their logistics provider.
• Security checks can speed up border clearance process..., or sink it! Since 2001, both the U.S. and Canadian governments have ramped up security procedures to protect their countries from unauthorized materials inadvertently gaining entry. Several new programs and procedures have been implemented that require carriers to advise the government — prior to arrival at the border - of a shipment's exact contents. These security programs, if implemented correctly — can actually speed up crossing time and minimize the amount of paperwork that needs to be filed. Unfortunately though, too many providers do not keep abreast of latest government requirements, and end up paying the price with lengthy delays and costly penalties.

The white paper is particularly helpful to businesses thinking about expanding their supplier base to Canada. The Canadian market is potentially a very lucrative source of business opportunities, but there are issues associated with cross border shipping that must be carefully considered prior to finalizing any decisions.