由 caicai8478 A common challenge faced by companies in cross-border e-commerce and global logistics is the localized differences brought about by regional characteristics. With globalization and localization coexisting, how should companies effectively build localized overseas logistics and fulfillment capabilities?
At the 7th China Cross-Border E-Commerce Logistics Trends Summit, Peter Wang, founder of Maple Supply Chain, which has extensive experience in the Canadian market, delivered a keynote speech titled “Building Localized Overseas Logistics and Fulfillment Capabilities for Cross-Border E-Commerce.”
Video of Peter Wang’s Summit Speech
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Commonalities in Overseas Localization
Regardless of the market or type of business, there are three key areas to consider:
Laws/Regulations: Whether a company is engaged in logistics or import/export trade, it is crucial to understand the relevant rules.
Culture: Every country has its own culture, just as the Chinese nation has a 5,000-year-old tradition. Confucianism, Taoism, and other philosophies influence our judgment and conduct. Canada also has its own unique culture, and understanding this culture can be highly beneficial for companies conducting business or conducting commercial activities in the country.
Habits: Whether doing business in Canada, the United States, or any other market, it’s all about buying and selling products or providing services. Therefore, companies need to understand local customers. What kind of customers are they? What are their habits? What are their lifestyles and consumption habits?
Peter Wang, Founder of Maple Supply Chain
Why has Maple Supply Chain grown from scratch to where it is today, establishing partnerships with leading Chinese companies in its Canadian fulfillment operations? First, it’s because it’s capitalized on the trend of Chinese companies going global. Second, it’s based on the principles of seizing opportunities, understanding the path, optimizing techniques, implementing, and uniting. Leveraging the changing times and combining our own unique strengths, we determine our direction and do what we believe is right.
To give you a simple example, in all our years in the industry, whether in import and export trade or now in cross-border e-commerce logistics services, we’ve never experienced a single return. The most crucial point is that companies must understand local laws, culture, and customs. Only with this understanding can they successfully overcome the first hurdle of entering overseas markets: dealing with customs, tax authorities, and customers.
First, understanding the content of communication. For example, if a company receives an inquiry from customs, it needs to consider: What is the purpose of customs’ request? Why is customs asking this question? How should it be answered?
Second, the timing of sending an email can make a difference. For example, the day of the week—morning or afternoon? For example, when faced with a customs return request, how should a company explain it? If an error occurs, whether to simply say “sorry” or “sorry, and…” is crucial. Companies must carefully consider the content following the “and” and when to simply say “sorry” and when not to.
We have handled many cases involving customs clearance, taxation, customer complaints, and other issues, helping our clients resolve them smoothly. For example, a Chinese e-commerce platform was asked by customs about import and export details. I helped write an email detailing the entire trade process, customs clearance rules, and sales regulations.
Third, it is important to understand the local culture. For example, Toronto is a large immigrant city. There’s a saying, “Big City, Small World,” which means Toronto has many immigrants. People from all over the world live in different communities, each with its own distinct culture, which requires understanding. Canada is a country of immigrants, and after five years, immigrants typically develop some Canadian traits and ideologies.
For example, Canadians are relatively friendly and patriotic. For example, Tim Hortons, Canada’s national coffee brand, is far more popular than Starbucks, ice hockey is a national sport, and apologies are often expressed with multiple “sorry”s (see my WeChat profile picture). Understanding these circumstances makes it easier for companies to communicate with local governments and customers and resolve issues encountered there.
Building Canada’s Contract Compliance Capacity
Relatively speaking, Canada is a relatively unique country. Its small population of only 41 million, despite a land area larger than that of China, leads many to believe that the Canadian market is difficult to operate in. But in reality, the population of Ontario, Quebec, British Columbia, and Alberta in Canada accounts for over 80% of Canada’s total population. Therefore, companies only need to establish a strong presence in the six cities within these four provinces to essentially capture 80% of the Canadian market. So, from another perspective, Canada is also a very attractive market.
Currently, Maple Supply Chain has two main brands in Canada: Maple Supply Chain Management Inc., established in 2019, and Neighbor Express Network, established in 2021. We primarily serve three types of clients:
First, e-commerce platforms and sellers, including SHEIN, Amazon sellers, AliExpress, and TEMU.
Second, business-to-business (B2B) clients, primarily Chinese brands expanding overseas, including those in energy storage, new energy, and electronics. Currently, all Chinese companies are expanding overseas, and we can provide them with localized services, including warehousing, distribution, and after-sales service.
Third, logistics companies. These companies need to establish a presence in Canada, and we can provide localized logistics and warehousing operations.
After years of development and cultivation, Maple has continuously increased its investment and established a deep localized logistics fulfillment capability in Canada, which can provide customers with five core businesses:
(1) Warehousing fulfillment:
The main functions are storage, distribution, FBA transshipment, drop shipping, etc. In terms of warehouse resources, warehouses have been purchased in both Eastern and Western Canada. In 2023, the warehouse area will reach more than 200,000 square feet, and the total operating warehouse area will reach more than 370,000 square feet. Among them, there are two warehouses in Vancouver and one in Montreal. Toronto will sign a fourth warehouse this year, and Calgary will also build its own warehouse in May.
(2) Terminal delivery:
In addition to FBA delivery, truck delivery also provides commercial address delivery for Costco, Walmart, etc., as well as private address delivery. In addition, Neighbour Express initially provided Canadian return services for Chinese e-commerce platforms in the form of Cainiao Station. Now it also provides medium and large-scale delivery for consolidation customers and e-commerce platforms such as SHEIN and TEMU.
(3) Industry qualifications: In order to improve our service capabilities, we started applying for qualifications in 2021. So far, we have basically obtained all relevant qualifications, including IATA qualifications, ocean freight forwarding qualifications, CBSA customs supervision warehouses, CBSA customs brokers, and lithium battery transportation qualifications. Therefore, in terms of customs clearance, we have a professional customs team and system authorized by CBSA to achieve 24-hour customs clearance across Canada. (4) Customs supervision warehouse: It took us one and a half years to apply for a customs supervision warehouse in Toronto. The professional supervision warehouse system and standardized operations have been highly recognized by the customs, providing strong timeliness and cost guarantees for the supervision, transit, transshipment and cargo inspection of import and export goods. In addition, based on the needs of overseas companies covering North America, we are also upgrading the supervision warehouse to a bonded warehouse and logistics bonded area. (5) International Freight: In order to meet the full-chain service needs of customers, additional ShippingLine and AirLine resources are provided, including the return space of Jiayou International’s China Southern Airlines all-cargo aircraft. In cooperation with HNA, we have contracted the air cargo space from Vancouver to Shenzhen to provide air transportation services for Canadian customers. So, how does Maple Supply Chain provide customers with complete supply chain services? Specifically, if it is a forward chain importing to Canada, overseas customers will enter Canada through international transportation channels. Before entering, they will use EDI data to pass to the customs department for pre-clearance. Basically, pre-clearance can be completed before the goods arrive. Image source: MAPLE If the goods are not cleared and released, they will enter the supervision warehouse; if they are cleared and released, the goods will have three destinations: first, they will be directly delivered to commercial end customers; second, they will enter the warehouse for storage, drop shipping and other 2C fulfillment; third, they will be transferred from the warehouse to FBA and the commercial addresses of retailers such as Costco and Walmart for 2B distribution and transshipment services. When customers require returns, we can also implement the entire reverse logistics process.
Before 2020, we focused on the basics. From 2020 to 2022, we kept our heads down while keeping our eyes on the road. Starting in 2022, we will keep our feet on the ground while aiming high. Many manufacturers are now expanding into Mexico. Maple Supply Chain’s next goal is to penetrate the North American market and become a fourth-party logistics supply chain company. In another five years, we hope to become the DSV of North America, providing even more services to outstanding Chinese companies going global and global enterprises!