Y&A Framework: Logistics

We have worked on dozens of businesses and want to present our thoughts, to help you better navigate your business adventures


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Purchase vs Development?
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Business Plan
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License & Permit


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Business Incorporation
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Bookkeeping: QuickBooks
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Accounting Calculator
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Corporate Taxes


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    Logistics has a huge role on our countries overall growth. The demand of the industry originates from all sectors of the economy and is directly affected by fluctuations in economic activity and trade patterns.

    With the rise of e-commerce, logistics professionals can no longer simply go about standard operations, Industries rely on transportation and logistics network to deliver rapid, integrated and secure solutions to leverage their global supply chains. While some firms retain in-house capacity for their transportation and logistics needs, many outsource these services to companies that can provide transportation, warehousing, brokerage, customs clearance and international freight forwarding services.

    According to the American Trucking Association, freight transportation is a $600 billion a year industry. Within this enormous industry, the fastest-growing segment is third-party logistics companies that provide shipping and freight solutions to clients, which makes it much easier for clients to manage supply chains and allows them to serve their customers without having their own fleets of trucks and warehouses.

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    Ten years ago, third-party logistics made up less than 10% of the total market share in the freight transportation industry, but today it makes up more than 25%, according to the Council of Supply Chain Management’s State of Logistics report, which pegged 3PL revenue at $157.2 billion in 2014. Logistics research company Armstrong & Associates expects that number to grow to $195.8 billion a 24.5% increase by 2018.

    The logistics business: A Brief Explainer

    Logistics or logistics management ultimately is all about the distribution of goods. To get to that point, logistics entails the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, including services, and related information from the point.

    1. Material flow - it is a flow of goods from their sources through the necessary processes, including storage, retrieval and delivery, then on to the customer with no unnecessary delays or costs
    2. Merchandise flow - It represents a transfer process of goods from manufacturers through wholesalers and/or retailers to customers.
    3. Money flow - It involves pay in advance and funds’ transfer.
    4. Information flow - the linking of the desired information communicated among the members in the logistics channel

    Steps Involved in Setting Up a Logistics Company

    You have decided to start your own logistics company. But before going through the motions, it is important to have a clear picture on how to start one. You need to be aware of the process that you must go through because having a logistics company can be risky. Reduce the risks by being prepared for it and knowing the possibilities, as well as challenges, beforehand. Below we break down each step and give an overview on why it is an important step in starting a logistics company.

    How to get Freight Broker License?

    1. Complete and file your FMCSA OP-1 Form……$300.00 each

      Motor Carriers, Brokers, and Freight Forwarders begin the Operating Authority application process by submitting one (or more) of the following forms with the appropriate application processing fee:

      • OP-1 — Operating Authority for:
        1. Motor Carrier (property or household goods).
        2. Broker (property or household goods).
        3. United States-based Enterprise Carrier (international cargo or international house hold goods).
      • OP-1(P) — Operating Authority for Motor Passenger Carrier.
      • OP-1(FF) — Operating Authority for Freight Forwarder (property or household goods).
    2. Form BMC-91 or BMC-91X
      • proof of bodily injury and property damage (BI & PD) insurance.
      • $1,500,000 minimum liability coverage is required if all vehicles in the company fleet have seating capacity of15 passengers (including the driver) or fewer.
      • $5,000,000 minimum liability coverage is required if any vehicles in the company fleet have a seating capacity of16 passengers (including the driver) or more.
    3. Complete and file your BOC-3 Agent Processing Form…. between $20 and $40

      One signed copy of the BOC-3 form should be filed with each state in which your trucking company operates. The BOC-3 designates legal agents in every state where a trucking company operates. Only a process agent, on behalf of a carrier, can file a BOC-3 form. If you are a member of the Owner-Operator Independent Drivers Association (OOIDA), the association will file your company’s BOC-3 at no charge.

    4. Get your freight broker bond (BMC-84) or your freight broker trust (BMC-85)

      The bond demonstrates financial responsibility of a broker, guaranteeing payment to motor carriers and shippers if a broker fails to comply with its contracts and agreements. Annual premium for the $75,000 BMC-84 Bond currently range between $1,300 and $9,000. BMC-85 is a trust fund that requires at least $75,000 worth of collateral to be posted to the government.

      Once the process is complete you will typically have to wait 3-4 weeks before the FMCSA deems your authority/license active, the online method reduces processing time by as much as 2-3 weeks.

    Freightaholic: License and Permits

    Ten years ago, third-party logistics made up less than 10% of the total market share in the freight transportation industry, but today it makes up more than 25%, according to the Council of Supply Chain Management’s State of Logistics report, which pegged 3PL revenue at $157.2 billion in 2014. Logistics research company Armstrong & Associates expects that number to grow to $195.8 billion a 24.5% increase by 2018.

    1. Commercial Vehicle Operator Registration (CVOR)…… $250.00 ($50.00 renewal)

      Operators of trucks that have a registered gross weight of over 4,500 kilograms, and buses that can carry ten or more passengers (not just Ontario's for-hire operators) are required to register under the Commercial Vehicle Operators Registration program.

    2. International Fuel Tax Agreement (IFTA) License……Decal fee of $10.00 per set / yearly

      IFTA is a cooperative agreement among the Canadian provinces and most American states to make it easier for inter-jurisdictional carriers to report and pay taxes on the motor fuels they use. IFTA credentials are valid for travel in the 10 provinces in Canada and 48 states in the U.S.

    3. The International Registration Plan (IRP)……fees vary

      US-based registration reciprocity agreement among states of the United States, the District of Columbia and provinces of Canada, including Ontario. The plan distributes commercial vehicle registration fees based on the total distance travelled in each place.

    4. Automotive Report & Release Document

      To transport goods for automotive production or service into Canada by highway, you must document the cargo.

    5. Cargo Control Abstract & Document

      To transport cargo into Canada in multiple shipments, you must abstract the entire shipment and fill out a Cargo Control Abstract form. You must document your cargo with Cargo Control Document (CCD) must have a bar-coded Cargo Control Number (CCN).

    6. Carrier Code

      To cross the Canadian border with specified goods, you need a carrier code. Specified goods include: Commercial goods Empty cargo containers not for sale Any goods transported into Canada for a fee

    7. Service Plate /Permit…..$32.00

      Service providers, including anyone who repairs, customizes, modifies, manufactures or transports motor vehicles or trailers, are eligible for the Service Plate/Permit.


    Let’s Make it Official, and get your Business Registered

    Start your business right and register; you can be a sole proprietorship or a corporation. We recommended incorporating your business w/c gives you shield from the companies liability. Take our quiz to learn more about incorporation, we can help you choose what’s best for your business; know the difference between federal incorporation or provincial/territorial

    Painless Inventory Management: Bookkeeping software that best fits your business.

    Are you an owner-operator or trucking company? Running a logistics operations, whether large or small, is a fast-paced task. Managing schedules, government regulations, establishing partnerships, balancing fuel costs, maintain equipment, and much more make the trucking and logistics industry a challenging one! However, your QuickBooks bookkeeping doesn’t have to be!

    The Advanced Inventory functionality for QuickBooks Enterprise makes managing inventories of any size a simple task, just scan the inventory or serial numbers and QuickBooks takes over, putting your data in the correct fields automatically. And if your inventory items don’t have barcodes, QuickBooks can create them for you!

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    Track Inventory in Multiple warehouse and bin location

    For each location, you can see how many items are on hand, on sales order, on purchase order, and your reorder point… and QuickBooks will automatically calculate which items you need to restock. Track specific inventory items down to the bin location level within one or more warehouses.

    Serial number and bar code scanning

    Enter serial numbers and lots at the time of purchase, transfer, or sale for more reliable tracking. Increase efficiency and reliability for all inventory data entry by scanning items and serial numbers without touching a keyboard – QuickBooks automatically puts the information into the right field.

    Blossom your business with Accounting

    If you’re anything like the vast majority of small businesses in the logistics industry, you too would probably find accounting an exhausting task. Putting it off could spell disaster as you could lose track of all the details and little expenses. Logistics and supply chain companies require extremely tight cash management to maintain the operations, grow, and recover from unexpected shortfalls.

    Utilize accounting and run a thorough growth analysis and risk assessment, you can determine whether it would be worthwhile to expand into certain geographic locations, or whether the organization will find it best to wait until later. This analytic data can also be used for business plans, loan procurement, and courting investors.

    Depreciation Calculator

    It is important to recognize the value of your car, warehouse, office space, etc. Knowing the current worth of your business assets can help you strategize. The depreciation could be claimed as an expense which either reduces your tax liability or gives you credit to lower your income. The calculator below will help you identify how your assets losses their value by an annual percentage.


    Sr No. Product Name Quantity Purchase Price Selling Price Markup Percent Profit Profit Margin
    1 Lorem ipsum Dolor sita mae color 20 200 USD 300 USD 4.0% 3% 0.0%
    2 0.0% 0% 0.0%
        Total Average Average Average Total Average
        20 200 USD 300 USD 4.0% 3% 0.0%

    Give your partners at Yogi & Associates a call to help file your Tax Return

    1. Every business needs to file their corporate taxes, whether they were actively engaged in business or not.
    2. Sometimes, there’s an advantage to being the little guy—Canadian owned and con trolled small businesses may be eligible for the small business deduction, bringing the tax rate down to 10.5%. The business limit on receiving the small business deduction is $500,000, meaning that corporate income up to the amount of $500,000 is eligible for the small business deduction.


    Failure to file your T2 taxes on time will result in penalties. These penalties amount to 5% of the amount owing on your taxes, plus an extra 1% for each full month that your tax filing is late. The late penalty for filing may jump to 10% if the CRA sends a demand to file, when there has also been a failure to file in any of the three previous tax years.


    1. Supply Chain Digitization

      Supply chain Digitalization enhances speed, dynamics and resiliency of the supply chain operations, leading to greater customer responsiveness and ultimately higher revenue. By embracing digitalization, companies can experience real value, increased revenue and market valuation.

    2. Trade & Transportation Corridors

      The Trade and Transportation Corridors Initiative will invest a staggering $2 billion over the next decade in an effort to make Canada’s transportation infrastructure more efficient and effective. Canadian companies can take some comfort with that sign that market growth in Canada is projected to maintain growth well in to the future.

    3. Truck and Bus Tire manufacturing Industry

      Truck and bus tire manufacturing industry is reporting YoY growth of 9.7% in the OEM market and 3.9% in the replacement market for 2017. Growing truck and replacement tire sales point to larger volumes of products being moved from manufacturers to warehouses, and then on to retailers, resulting in a necessary increase in distribution & facility capacity throughout the supply chain.

    4. Warehousing and Logistics robotics

      The global market for warehousing and logistics robotics reached nearly $2 billion in 2016, and is projected to exceed $22 billion by the end of 2021. The concept of robotics and automation is widely implemented, the latest generations of robots are easier to program, more flexible and affordable. Their role is to assist workers with repetitive and physically challenging tasks.

    5. Fuel Prices

      Fuel prices increased in Canada during the second half of 2017, from approximately $.85USD per liter to $.95USD per liter. Prices are projected to continue to rise in the first half of 2018 to an estimated $1USD per liter.


    Canada’s planned investment in national infrastructure will enhance the ability to move goods throughout the country. Companies are expanding their fleet capabilities with new vehicle purchases, which will result in a budget increase for tires and other replacement parts.

    Warehousing technology, automation, and robotics will rise to the top of many company’s capital expenditure lists in an effort to achieve higher levels of operational efficiency, as well as to meet the technological demands of the future.

    Fuel costs will continue to be a critical concern as trucks spend more time on the road and travel longer distances, and increasing