In the modern connected economy, cross-border cargo movement is vital to global trade. With businesses expanding beyond their geographical borders, the need for reliable transportation has increased. However, broader shipping operations bring numerous challenges – being custom-compliant, cargo planning and handling, and cross-border route optimization, are a few to name.
Common Cross-Border Shipping Challenges
Customs Non-Compliance
Customs clearance is one of the most critical aspects of cross-border goods movement. There are several complexities in the process – accuracy of commercial invoices, duties and tax compliance, essential documents and fees handling – and more.
Documentation Inefficiencies
The bill of lading (BOL) serves as the standard catalog of the freight being shipped while a commercial invoice is used for controlling imports, freight valuation, and calculating duty charges. In case of any mismatch between these two documents, the shipment will be halted at the border by the customs department.
Tariff Tactics
Tariff negotiations are critical in international trade, even leading to threats of trade wars among nations. Adequate tariff processing is essential for improving freight movement between countries and balancing international trade relations.
Incapable Broker or Carrier
Experienced customs brokers are in a position to coordinate with inspectors efficiently, ensuring timely freight clearance on being subjected to cargo examinations. Securing a capable broker for cross-border goods movement is crucial. Moreover, the vehicle operators/drivers and carriers should have valid documents and collaborate well for smooth customs clearance.
SaaS-Aided Cross-Border Shipping
A Logistics management system (LMS) is a centralized software platform streamlining transport operations that include planning, execution, and cargo tracking. Certain key features of a modern LMS are:
- Cloud Based – Easy implementation and flexible pricing
- Integration and Centralized Communication – Coordinating and tracking shipments seamlessly
- Customizable – For meeting specific supply chain requirements
- Wide Carrier Network – Ensuring timely and orderly delivery
With customizable features to address transporter-specific challenges, a LMS becomes a valuable automated tool enhancing cross-border shipping and optimizing the associated costs.
How Does a Digitize Solution Transform Operations?
With advanced integration capabilities, Logistics management Software enables businesses to manage their transportation needs on a global scale by securing smooth supply chain flows over multiple modes of transport. Its key features for international logistics include:
Carrier Selection
The availability of several international carriers, with different pricing models, complicates the task of finding a cost-effective carrier. An algorithm-run logistics planning platform matches shippers with carriers that fit best with the specific cross-border requirements and their delivery needs automatically. Automated contract storage and real-time logistics insights are some of the other beneficial features.
Automated Documentation
An efficient LMS comes with robust customs compliance features, including automated documentation facilities such as commercial invoices, packing lists, certifications, and more. Moreover, a wide scope of integration with global trade databases for tariff checks, import controls, local regulations, customs authorities, and more, provides smooth validation and management controls.
Shipping Load Optimization
With an automated LMS, shippers determine the ideal cargo consolidation to maximize space utilization and goods safety with no additional efforts involved. Shippers can reduce the high costs, calculated under foreign exchange rates, by optimizing the composition of every global shipping load.
Global Cargo Tracking
The ability of a LMS to be easily integrated with the shipper’s other transportation platforms offers incomparable international logistics visibility. An advanced software platform facilitates - routine carrier communications, time-saving by avoiding unproductive coordination efforts, and updating shippers and customers about unplanned shipment delays – ultimately advancing overall customer satisfaction.
Insurance and Risk Management
A robust LMS manages insurance policies for specific types of cargo and routes. It also automates the process of tracking compliance with liability and safety standards required for specialized cargo.
Shipping Route Optimization
Real-time route planning and adjustments become simpler with a LMS that takes into consideration several factors such as traffic conditions, border delays, fuel efficiency, toll costs, freight hubs, customs checkpoints, border queueing time, and others to generate real-time updates to shippers and customers.
Significance of a Scalable Forwarder LMS in the Long Run
Customer expectations are ever-rising, coupled with the ever-changing regulatory requirements, have become essential for business growth. Choosing an experienced solution provider that grows with a growing business is highly critical. A LMS is most effective when it links internal and external systems easily and proactively repurposes information to deliver customer updates, issue alerts, and enable customers to book, ship, and quote, as and when demand arises.
Steering Ahead with Fleetx
Armed with the power of automation, Logistics management systems (LMS) can alter the cross-border shipping scenario and international logistics. With the increasing flow of goods among the global economies, the scope of operations of reliable cross-border trucking will only grow.
For instance, when clients start operating in a new trade lane or introduce a new security filing procedure for a new country, their technology partner needs to incorporate the requirements seamlessly by efficiently integrating the new features and functionalities without disrupting daily operations significantly.
Fleetx, with its upward growth curve over the years, has been an active participant in several LMS implementations. The tailored features have successfully addressed several such operational challenges and have been crucial in making such businesses sustainable in the long run. Moreover, organizations have ensured higher efficiency and improved customer satisfaction while lowering their costs of operations. So, if you are exploring options to stay competitive in the ever-evolving global stage, then LMS and a reliable implementation partner are your absolute essentials.
