How to Slash Your U.S. Shipping Costs

Introducing a new shipping system helped Delviro Energy land a spot on the 2015 PROFIT 500

Written by Carol Toller
Delivro Energy’s production facility. Photo: Daniel Ehreworth

About 10% of Delviro Energy’s 2014 sales came from the United States—an increasingly lucrative revenue stream, given the state of the Canadian dollar—and the Toronto-based company has boosted them by hiring sales agents south of the border.

That contributed to the firm growing its revenues by 2,197% over the past five years, a performance that earned it the #33 spot on the 2015 PROFIT 500 Ranking of Canada’s Fastest-Growing Companies.

But shipping its lighting products to the U.S. is expensive, says president Joe DeLonghi, who identified the prohibitive cost as the company’s biggest exporting challenge. DeLonghi’s solution? He developed a process of consolidating all U.S. shipments and sending them in weekly batches to a warehouse in Buffalo, N.Y. From there, items are broken out and shipped domestically.

The result: impressive savings of 70% on cross-border brokerage fees and 50% on freight costs.


What do you think of Delviro’s strategy? How do you control shipping foreign shipping costs, whether to the U.S. or elsewhere? Let us know using the comments section below.

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