journal article
LitStream Collection
Logistics Implications of an Integrated USCanada Market
Taylor, John C.; Closs, David J.
1993 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039310025570
Trade restrictions border crossing difficulties, and companyorganizational structures have limited historical crossborderdistribution activity. The result, generally, is two or threeindependent distribution systems to support North American logisticsoperations. With the completion of the USCanada Free Trade Act, many ofthese limitations are being reduced. It is now time for firms to refinetheir distribution networks to respond to this new environment. Themajor changes that firms must consider are distribution centre locationsand manufacturing supply points. The factors that influence thesechanges are countrymarket integration, duty levels, and crossbordertransportation rates. Reports on the results of food industrysimulations that consider multiple levels of integration, duties, andcrossborder rates. The results compare the number of distributioncentres and the total cost of each network, and generally indicate thatthere are no significant changes in distribution system network designresulting from USCanada Free Trade. The minor changes which areobserved include Toronto serving the Eastern US and Seattle servingWestern Canada. The cost differences are not significant. The resultsalso indicate that there is no significant economic motivation forcrossborder logistics activity until duties are eliminated andcrossborder transportation rates decline by 10 per cent.