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PRESS COVERAGE This firm's going for brokerage The Toronto Star Did you know that import duty on a car phone is 17.5 per cent? If it is listed, however, as a radio transmission apparatus, the duty falls to 9.5 per cent. This type of information is the bread and butter of Management Systems Resources Inc., a Toronto-based firm specializing in Canada Customs' procedures. MSR develops and sells software packages that allow a company to be its own customs broker and to navigate the seas of import-export red tape easily. At the helm of MSR is Rajiv Manucha. In 1981, Manucha left IBM in a fit of entrepreneurial zeal, to run his own computer company. "I was providing one-of-a-kind software and not making any money," says Manucha "I'd have a contract with Pepsi and learn the syrup business, and then have a Bay Street client and learn the stockbroker business. I finally realized this was labor intensive and to make money I had to specialize." Manucha found a niche in the customs brokerage field and since then sales have risen to over $5 million a year. The company has been financed out of profits. "You don't need a capital investment to develop software, but educated people. Our product is a high knowledge system that allows companies to do their own importing. And our business is to know all changes at Customs and Excise Canada and to get right on them," says Manucha. Ten years ago, Manucha started marketing his customs program with a core staff of six. "The company now has 26 people covering sales, marketing, technology and documentation," he adds. His company's expertise is contained in a 1,100-page text about customs procedures that is used in universities and embassies around the world. To date, MSR has sold 8,000 copies. MSR's software installations average about $15,000 but go up to $500,000 for multinational companies. There is also a maintenance fee of about 10 per cent a year. "If you pay $400,000 on brokerage fees, we can save you $350,000 per annum by eliminating the need for a customs' broker. Our system is so simple, companies ask what's the catch," says Manucha. Dave Ogle, logistics manager for Bridgestone Firestone Canada Inc., who has worked with MSR software since 1983, describes the company's technical support as excellent. "With the software you can do all your customs paperwork in-house and save a lot of money. It helps if you have someone who knows about tariffs to get the full potential out of the MSR systems," he adds. Manucha points out that Canada has one of the most sophisticated customs systems in the world. Imported goods are bar-coded at customs, and the importer prepares computer forms on the honor system, transmitting them to Ottawa, electronically. But, the government reserves the right to audit at any time. "This makes it advantageous to do business in Canada because it does away with legions of border officials and time-consuming and expensive form-filling," says Manucha. When he first went into business, the biggest lesson Manucha had to learn was to let go and delegate. "I had a pile of leads too many to follow up. It took me a while to realize someone else could sell. I wasn't the only one," he says. Today, Manucha is a firm believer in giving his staff authority and, unusual for a computer company, the most "empowered" managers at MSR are women. Manucha believes that "team making" is as important to his business as keeping on the cutting edge with the software. He is a disciple of the Japanese management style. 'We have consensus management and everyone knows everyone else's job. I have one vote in the company. My authority comes with ideas, not my title. We spend a lot of time hiring the right person. We are selling knowledge, so we can't have people come and go," he says. Maria Sheppard, vice-president at MSR, describes Manucha's management style as IBM-gone-visceral. "And it works. There is genuine staff loyalty here," she says. Personally, Manucha feels his life has come full circle. His father was an ambassador in India's foreign service, spending much of his time on trade issues. As a result, Manucha grew up in an atmosphere permeated with duty and tariff concerns. So, he believes it is fitting that he is making his fortune in the same field. Manucha sees unlimited expansion for MSR. "There was a wave, a new need for trade information and we were there. We look forward to free trade with Mexico," he says. |
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MSR CUSTOMS + TOLL FREE 1-877-328-7866 + INFO@MSRCUSTOMS.COM |
