Essay About Goodkid Toy Importers Today And Considerable Port Congestion

Goodkid Toy Importers
Goodkid Toy ImportersThe main problem facing Goodkid Toy Importers today is a saturated market in Western Canada due to large stores and e-merchants making some inroads. Furthermore, there has been recent labor unrest as well as considerable port congestion taking place at West Coast U.S. ports. Right now our global sourcing strategy is risky because we have all our “eggs in one basket” as we only import toys from Asia using the port of Vancouver. The tsunami in Japan has taught us that in order to mitigate risk companies need to be prepared with back-up solutions in case of afailure point in their supply chain. If the earthquake in Vancouver known as the “Big One” is to take place in the next few years it could cause a Tsunami that would end up disrupting the port of Vancouver. Goodkid has floated the idea of receiving goods from the east using Halifax port as a potential solution. Nevertheless, this idea is not very pragmatic because Halifax port is quite a distance away from most of our eastern markets. In order to save on shipping costs (by reducing expensive land shipping) as well as to be closer to our eastern markets it is best to consider an alternative solution.I recommend that Goodkid Toy import its products using the Port of Montreal. Indeed, the reason for this suggested alternative is because in recent years the Port of Halifax has been plagued by the same labor unrest issues affecting the west coast ports. Furthermore, the port is at its capacity and is becoming highly congested which risks delays in delivery. In contrast, the federal government recently announced that it would be investing up to $15.1 million towards two projects that will increase the port’s container handling capacity.In conclusion, in the next year Goodkid Toy should focus on establishing new relationships with freight forwarders that can assist us in moving our goods door-to-door from their originating point in Asia to their designated retail store in Eastern Canada. At the same time we should use our connections with U.S. Toy companies to get in touch with consolidators in Singapore or the Mediterranean region that can assist us in loading our product onto container ships bound for the Port of Montreal. The future of our growing markets is in the provinces of Quebec, Ontario, and the Maritime provinces. The Port of Montreal is perfectly positioned to assist us in reducing our shipping costs as well as bringing us closer to our expanding markets. I am confident that this is the best strategy that can move our company forward into the future.