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Logistics in Canada

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Submitted By Brock
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Summary

Peter Kovessy is a reporter for the Ottawa Business Journal. He brings up a very interesting difference between Canadian logistics and those of the United States. In 2007 Federal Government statistics showed that Canadian supply-chain management and logistic costs were 12-30% higher than in the US (Kovessy, 2008). The stated reasons for such a drastic difference in cost was because of generally smaller markets and major Canadian cities being further apart than US cities, therefore higher transportation costs. Regardless in order for Canadian companies to continue to be prosperous they need to minimize their costs in order to not only compete globally but also locally. Bob Gauthier, president of Seaway Express, says the best way to do so is for transportation companies to move their operations from major cities to more rural low cost towns. Traditional logistics theories believe that if the end consumer is in a major city, the distribution should be in the same city but in fact that is no longer true. Bob Peters, a senior officer in Cornwall's economic development department says “shipping and warehousing firms have realized they can reduce labour and real estate costs while avoiding traffic congestion by moving to lower cost centres in eastern Ontario.”

The example used is a supply-chain management warehouse in a town just outside of Ottawa called Cornwall. The warehouse distributes to over 90 Wal-Mart locations in places such as Kanata and Ottawa. As a result transportation companies such as Minimax Express Transportation Inc. based out of Cornwall is now prospering and expanding because of their close proximity to this SCM warehouse. Being so close has allowed them to have the lowest costs in the industry, even major transportation companies based out of Ottawa.

Lastly Bob Gauthier shares his experience of going over to Europe to

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