global shipping, streamlined shipping, compliance, automation

For global manufacturers, managing logistics across various locations, countries and regions, as well as carriers, is no easy task. Add to that the fact that disruption has been ever present the past two years and global trade is getting even more complex.

According to a July 2022 World Trade Organization report, the global economic outlook has deteriorated since February as a result of the war in Ukraine. This has resulted in the WTO reducing its forecasts for world trade over the next two years from 4.7% to 3.0%. With other economic indicators showing low global growth, the WTO may need to revise this already low forecast should trade tensions between the world’s largest economies persist.

Geopolitical maneuvering is beyond the control of global shippers. What they can do, however, is to standardize global trade operations across all their sites. When you have multiple manufacturing locations across the world, it can feel as though your enterprise is not one organization, but a number of different companies, all using different guidelines. With a standardized global shipping solution, all sites operate and adhere to the same procedures, workflows and processes.

This is a significant differentiator when building relationships with customers and partners. It bolsters trust because they know that no matter where they engage with your enterprise, they can expect consistent service. Additionally, global shipping is further complicated with fluctuating fuel costs, increasing customer expectations, soaring parcel shipments and other factors. Following are four steps for standardizing shipping across your manufacturing enterprise.

Step 1: Automate Compliance

Global manufacturing and shipping involves an increasing and ever changing number of compliance regulations. Whether you ship containers or parcels, you must ensure every shipment adheres to global trade policies.

Done manually, compliance would require spending hours of manual labor, sifting through regulatory reports, denied party lists, licensing agencies and other critical information. Automated trade compliance streamlines this process and ensures a reliable approach to avoiding compliance missteps. An automated compliance solution that is integrated with your transportation execution solution speeds up processing time.

Furthermore, by automating compliance your company is not relying upon the knowledge of a few specialists to handle day-to-day operations. Instead, global trade professionals and logistics managers are free to concentrate on long term planning and strategy.

Step 2: Automate Documentation and Reporting

Global shipping involves a ton of customs and export reporting. Manually creating all the documents needed to complete a shipment is time-consuming. These may include accredited carrier labels, general purpose shipping labels, address labels, packing lists, bills of lading, dangerous goods notes, driver manifests and commercial invoices.

Incomplete documentation or license requirement errors will lead to delayed shipments. Recurring delays lead to damaged customer relations, and possibly canceled orders. Automating documentation and customs reporting streamlines the international shipping process and reduces the possibility of hold-ups.

Step 3: Leverage a Global Multi-Carrier Solution

Global manufacturers have highly complicated, intertwined transportation needs. In this case, they may decide it best to rely on a few known and trusted carriers. Trust is of course critical. But when you rely heavily on a handful of carriers, you are vulnerable to higher pricing as a result of not taking advantage of all shipping options.

A global multi carrier shipping solution could include local and regional carriers as well as global ones. Some regions — such as Europe and Asia — have numerous regional carriers. It makes sense to include the ones that offer the routes and services you most need. By leveraging a multi-carrier shipping solution, companies can seamlessly switch between carriers while still maintaining standardized shipping processes.

A multi carrier shipping solution should allow logistics managers to:

  • Find the best carriers: Instead of relying on a few carriers for all global shipping needs, logistics managers should be able to easily compare carriers to see which ones have the best rates and routes for specific jobs.
  • Proactively resolve delays: Logistics managers should have visibility across every step of the transportation and shipping process, and receive alerts should issues arise, allowing them to be more proactive.
  • Create standardized shipping processes: Instead of needing multiple processes for different locations or carriers, standardized global shipping processes make it easier to manage carriers, compare prices and organize critical paperwork.
  • Reinforce customer and partner relationships: Efficiently managing shipments will increase customer satisfaction, bolster trust and build credibility for an organization.

Step 4: Ensure Ongoing Carrier Compliance

Leveraging multiple carriers reduces costs in the long run. However, it can still be a challenge to remain compliant with each carrier.

Different carriers have their own requirements, and shippers must comply with their labeling and electronic communication standards. Carriers must enforce these standards in order to efficiently process high volumes of shipments through their networks. When you use a multi-carrier solution, your provider is responsible for ensuring carrier compliance standards remain up to date.

By automating trade compliance checks, automating export documentation, transportation labels and customs reporting along with a global multi-carrier shipping solution, manufacturers can create standardized export processes, reduce overheads, improve cycle times and increase visibility into global shipping operations.

Learn how QAD Global Trade and Transportation Execution (GTTE) can help your organization streamline global shipping and boost competitive advantages.

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