CANADA POST - COMMERCIAL ACCOUNT RESEARCH NOTES Account: Tailwind Traders (TWT) Account number: CP-BA-0492817 Segment: Commercial - Mid-market manufacturing and dealer supply Account executive: (you) Sales manager: Lynne Robbins Notes compiled: 2026-01-14 Classification: Internal - account team use only ------------------------------------------------------------------ 1. CUSTOMER PROFILE ------------------------------------------------------------------ Tailwind Traders is a privately held outdoor-equipment manufacturer supplying a national network of independent specialty retailers and dealers. Founded 1998. Head office in Mississauga, Ontario. Approximately 640 employees. Distribution network (5 sites): Mississauga, ON - primary hub, ~34% of parcel volume Laval, QC - ~22% Calgary, AB - ~18% Richmond, BC - ~16% Moncton, NB - ~10% TWT shifted from pallet-only distribution to a mixed model in 2023, adding direct-to-business parcel fulfilment for smaller reorders. That change is the source of most of the parcel growth we are seeing. ------------------------------------------------------------------ 2. CURRENT CANADA POST RELATIONSHIP ------------------------------------------------------------------ Agreement: Commercial Parcel Agreement Effective: 2024-04-01 Expires: 2027-03-31 Pricing review: Annually each March Current tier: Volume Band 3 (240,000-320,000 parcels/year) FY2025 volume: 304,090 parcels FY2025 spend: approximately $1.48M CAD Services in use: Expedited Parcel, Xpresspost, Flat Rate Box, Return Services (partial - ON and QC only) Not in use: Delivery Guarantee, Advanced Tracking API, Managed Account Reporting, Peak Season Planning TWT is at the top of Volume Band 3. FY2025 volume of 304,090 puts them 15,910 parcels below the Band 4 threshold (320,000). At current growth they will cross it during Q2 FY2026. ------------------------------------------------------------------ 3. KEY CONTACTS ------------------------------------------------------------------ Miriam Graham - VP Supply Chain Economic buyer. Signs at renewal. Cares about total landed cost and board-level reporting. Has asked twice for "one number I can take to the executive committee." Not yet met in person. Nestor Wilke - Director, Distribution Operations Our champion. Day-to-day sponsor since 2024. Advocates internally but says he "cannot defend Calgary numbers" in his ops review. Lidia Holloway - Procurement Manager Gatekeeper. Runs the March pricing review. Has requested a competitive benchmark for the last two cycles. Isaiah Langer - Branch Manager, Calgary Detractor. Escalated three times in FY2025 about missed delivery windows. Has authority to route Calgary volume elsewhere and has already moved an estimated 30% of Western parcels to Northline Courier on a trial basis. ------------------------------------------------------------------ 4. INTERACTION HISTORY (last 12 months) ------------------------------------------------------------------ 2025-03-11 Annual pricing review. Held rates flat. Lidia asked for a competitor comparison; not provided. 2025-05-22 Quarterly service review with Nestor. Green across the board. Nestor raised Calgary informally, no action taken. 2025-07-29 ESCALATION. Nestor and Isaiah joined. July on-time delivery fell to 91.3% nationally and 86.7% in Calgary during the summer volume surge. Returns rate rose to 7.2%. No root cause was provided to the customer. 2025-08-14 Follow-up call. Committed to a written service review. Not delivered. 2025-10-02 Nestor email: asked whether Canada Post offers "reporting we can actually use in a board pack." 2025-11-19 Isaiah confirmed a Northline trial for Western volume. 2025-12-08 Peak season check-in. Dec on-time 92.7%, below the 95% internal target for the second consecutive peak. 2026-01-09 Lidia email: March review will require a formal written proposal and a benchmark against alternatives. ------------------------------------------------------------------ 5. WHAT THE DATA SHOWS (FY2025) ------------------------------------------------------------------ Growth: Volume up 93% Jan to Dec (18,400 -> 35,480/month). Unit cost: Average cost per shipment fell $5.40 -> $4.94. Reliability: On-time delivery averaged 94.5%, below TWT's stated 95% supplier requirement. Two clear failures: July (91.3%) and December (92.7%). Calgary: Lowest on-time of any site every month of the year, ranging 86.7% to 92.1%. Highest returns rate and lowest satisfaction. This single site accounts for most of the national shortfall. Satisfaction:Recovered to 4.6/5 in October, then fell to 4.2 in December. ------------------------------------------------------------------ 6. OPPORTUNITY SIGNALS ------------------------------------------------------------------ - Volume Band 4 crossing in Q2 FY2026 creates a natural reason to reopen pricing before the March review rather than after it. - Nestor has asked for reporting; Managed Account Reporting is an existing Canada Post service TWT does not currently buy. - Return Services are live in ON and QC only. Extending to AB, BC, and NB is a straightforward expansion tied to a real pain point. - Peak Season Planning addresses the Nov-Dec pattern directly and has two years of evidence behind it. ------------------------------------------------------------------ 7. RISKS AND UNKNOWNS (validate before proposing) ------------------------------------------------------------------ - Northline trial scope, pricing, and end date are unconfirmed. The 30% Western volume estimate came from Isaiah verbally, not data. - Calgary root cause is not established. Could be linespace at the Calgary depot, TWT induction timing, or address quality. Do not assert a cause in customer-facing material. - No confirmed budget for added services. Miriam has not been asked. - TWT's 95% supplier requirement is referenced in Nestor's emails but we have never seen the contract clause. Treat as reported, not verified. - FY2026 volume forecast is our extrapolation, not TWT guidance.