Domestic and international Transportation Management Systems (TMS) share some similarities in terms of core functionalities, but they differ significantly in their scope and complexity. While a domestic TMS focuses on managing transportation within a single country, an international TMS is designed to handle the intricacies of global logistics.

One of the primary differences between a domestic and an international TMS is the latter’s ability to manage customs clearance and international trade regulations. While a domestic TMS may have some basic capabilities for handling customs documentation, an international TMS is explicitly designed to manage the complex requirements of cross-border shipments.

Another key difference is the need for international TMS to manage multiple modes of transportation. Domestic shipments often involve a single mode of transportation, such as trucking, while international shipments may involve a combination of modes, including ocean, air, and rail.

3rdwave has spent the past 30 years developing an international TMS for supply chain management. This article advances the discussion of global TMS, touching on advanced features that enhance trade compliance efforts and the benefits of SKU-level visibility, data, and analytics across the supply chain. Read on to learn more, or contact us to schedule a demo of our Shipment Execution Platform that puts international shippers and BCOs in control.

Leveraging Advanced Features of an International TMS

Efficient and cost-effective transportation is crucial for businesses to thrive in today's global environment. A multi-modal approach, which involves the strategic combination of different transportation modes, offers significant advantages in terms of both cost savings and improved delivery times. By carefully planning routes that integrate ocean, air, rail, and road transport, companies can optimize their supply chains and gain a competitive edge.

However, multi-modal shipments can be challenging for shippers and BCOs. For example, coordinating between various carriers, complying with customs regulations, and managing potential delays or disruptions can potentially add additional costs or possible delays if each is handled separately and manually. To overcome these obstacles and ensure efficient and reliable shipping, companies can greatly benefit from the use of an international transportation management system (TMS).

By ingesting, verifying, and standardizing information from different carriers and transportation modes, international TMS systems offer a centralized view of the entire shipping process. This visibility allows businesses to identify potential issues early on and take proactive measures to mitigate risks.

Additionally, international TMS systems can automate many tasks, such as customs clearance, documentation collection and sharing, and invoicing, reducing the administrative burden on staff.

Enhancing Trade Compliance with Your International TMS

A key component of an international TMS is its ability to ingest massive amounts of data from an operational perspective (transportation) and a trade compliance perspective. Each perspective, written in its own language, must be consistent. Having a verified, consolidated data set streamlines the process of customs clearance documentation and ensures adherence to international regulations. In this way, an international TMS reduces errors, saves time, and minimizes the risk of penalties or delays.

Global shipping and trade regulations require that supporting documentation is maintained. An international TMS provides a centralized repository for all relevant documents, such as invoices, bills of lading, customs declarations, and certificates of origin. This centralized approach helps ensure that all necessary documentation is in one place and easily accessible when needed.

It’s a far better approach than trying to manually manage thousands of shipments a year, which could amount to hundreds of thousands of pages of digital documents and hardcopy spreadsheets. An international TMS greatly reduces the complexity and challenge of manually juggling varying regulations, tariffs, and documentation requirements for individual countries.

Additionally, the global trade landscape is constantly evolving. An international TMS can capture new regulations and trade agreements in real time to help businesses stay compliant and avoid costly penalties or delays.

Maximizing SKU-Level Visibility in Your Supply Chain

A robust international TMS should also be able to manage and track inventory at the stock-keeping units (SKUs)level from the moment they are produced, capturing information such as location, quantity, and status. As SKUs move through the supply chain, the TMS should also be able to update information in real time, providing visibility into the current location, transportation mode, and estimated arrival time. This real-time tracking enables businesses to monitor the progress of their inventory and make informed decisions about production schedules, transportation routes, and stock allocation.

In addition, an international TMS can aggregate and analyze historical sales data for each SKU, identifying patterns such as seasonal variations and trends that can be used to adjust inventory levels based on demand and predict future demand. This proactive approach can prevent disruptions and ensure that products are available when customers need them, thus avoiding stockouts and excess inventory, which can lead to significant cost savings.

Optimizing Your Supply Chain with Real-Time Data and Analytics

A well-built TMS collects and analyzes vast amounts of data from various sources, including transportation providers, customs agencies, and logistics partners. This data tracks shipments in real time, monitors inventory levels, and identifies potential disruptions or delays. By providing a comprehensive view of the supply chain, a TMS empowers businesses to make data-driven decisions that optimize their operations and minimize risks.

For example, real-time data can be used to identify potential delays or disruptions early on, allowing businesses to take proactive measures to mitigate their impact. Additionally, data-driven insights can help optimize transportation routes, reduce transportation costs, and improve delivery times.

Furthermore, TMS data can be used to assess supplier performance and identify areas for improvement. By tracking supplier lead times, delivery reliability, and quality metrics, businesses can evaluate their suppliers' performance and make data-driven decisions about future sourcing. This information can also be used to negotiate better terms with suppliers and identify opportunities for cost savings.

Lastly, TMS data also helps to clear goods into countries compliantly and timely by having all the necessary data readily available in a single database within the system.

Take Control With a TMS Explicitly Designed for International Shippers

In today's complex global shipping landscape, having an international TMS with advanced features—such as multi-modal management, SKU-level visibility, automated trade compliance, and real-time analytics — is critical for optimizing your supply chain. These capabilities help ensure efficient, compliant, and cost-effective operations across borders.

If your current TMS doesn't provide these essential tools, it's time to consider a solution that does. 3rdwave offers a comprehensive international TMS designed to meet the unique needs of global shippers. From multi-leg transportation to deep SKU-level insights, 3rdwave empowers you with the advanced capabilities needed to stay ahead in international trade. Contact us today to learn more or schedule a demo to see how 3rdwave’s Shipment Execution Platform™ can transform your global logistics operations.

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