How to Take On Today’s Cross-Border Shipping Challenges
With today’s intricate and complex nature of the global supply chain, many cross-border shippers are often experiencing a wide range of challenges. To turn the challenges into their competitive advantage, cross-border shippers must analyze the current issues that are affecting their supply chain, adhere to all regulations and requirements, and capitalize on more efficient supply chain strategies.
Common Challenges Cross-Border Shippers Experience Today
- Trade wars
- Freight market’s capacity crunch
- Rising freight rates
- Truck driver shortage
- Global economy slowdown
- Changing regulations
- Customs requirements
- Compliance and risks
How to Address These Issues
- TMS – TMS is a popular tool choice among logistics organizations as it provides an integrated and centralized supply chain management system. TMS can support shipping operations by tracking the movement of goods and inventory levels, forecasting demands, and assessing risk situations. TMS utilizes data reports to review past financial performances and progress, as well as budgets for new programs and projections for the coming years. Learn more about TMS at “All About TMS: What is it and Why is it important?”
- 3PL – Working with an experienced third-party logistics can shorten the supply chain, avoid border issues, improve shipment tracking, and avoid high training costs. Also, 3PL can be a single point of contact that can provide insights for multiple needs instead of having to deal with several partners and departments.
- Near-Sourcing – Near-sourcing is a viable strategy in the supply chain industry due to the increased cost of outsourcing overseas as well as its many benefits. With near-sourcing, companies can manage the process with more control, stability, predictability, and autonomy. It also shortens the supply chain process and speeds up the transit time. You can learn more at “4 Benefits of Near-Sourcing.”
- Tailored Service Through Segmentation – Ensuring customer satisfaction might seem obvious, but softer metrics like this play a significant role in affecting a business’ bottom line. Providing a tailored service through segmentation is one of the key ways to effectively meet the customers’ needs with flexibility. Companies will need to identify the segments for the customers based on their needs and characteristics and build service strategies around them.
- Customs Procedure – Experiencing problems with customs is very common in cross-border shipping and can include issues such as border delays, incomplete or incorrect paperwork, unforeseen costs, and more. Such problems can negatively impact client relationships, revenue, operations, and more. Companies must ensure that their operations team is fully informed on the current requirements and processes as well as implement solutions through TMS tools, to help avoid these issues. A dedicated department for customs procedures dealing with regulations and compliances may be necessary.
While it is essential to know and follow the best practices of the industry, each company operates differently. In today’s logistics industry, it is crucial that cross-border shippers stay up to date with current world issues, laws, and regulations that can affect their business. Consistent evaluation of the company’s procedures, operational capacity and strategies, and capabilities of the internal teams will increase effectiveness and efficiency of the transportation efforts and successfully take on the challenges of today’s cross-border shipping.