The management of the international shipping process without the proper tools can be time-consuming and costly. Every country and declaration type can vary in terms of necessary documentation, format, rules, and procedures. The lack of standardization among countries can be challenging for export managers, however the use of a TMS can expedite the export compliance process.
What Does a TMS Include
The past few years have stressed how important a globally connected supply chain is. An integrated software system like a Transportation Management System (TMS) is a platform that organizes transportation and logistics operations both domestically and internationally. It ensures that goods reach their destination with few issues. A TMS has the following functions to assist export managers in their shipping operations:
Shipment Planning. TMS software allows users to optimize the movement of goods by using the best routes, carriers, and modes of transportation. The software is able to determine the most efficient routes based on distance, delivery windows, and traffic. Factors such as cost, deadline, and carrier availability are taken into consideration.
Enhanced Visibility. An international shipment potentially passes through several locations and is handled by many people. TMS software automates load tendering, carrier selection, and documentation generation while providing real-time visibility to the location of shipments, with all users being able to track and monitor them.
Carrier Relationships. International carrier relationships can be tricky. It also manages aspects of carrier relationships such as storing carrier profiles, analyzing carrier performance, and managing carrier compliance.
Freight Rates. A TMS manages freight rates by maintaining a centralized database of carrier rates. This makes rate negotiations and selection of carrier more efficient, which can make a difference in international shipping.
Reporting. TMS systems provide detailed reporting that analyzes transportation data to make decisions that identify bottlenecks and improve operations.
These features help export managers optimize the international shipping process to reduce delays and extra duties.
Compliance and Documentation
In addition to these features, one of the main reasons international shippers use a TMS is for assistance with compliance issues. Global transportation involves several regulatory and compliance requirements, including customs regulations and documentation. A TMS helps export managers maintain accurate documentation and ensures compliance with regulations in each country. The use of this software reduces the chance of mistakes, additional fees, and delays because of non-compliance.
A TMS also stores transportation data which helps export managers evaluate carrier performance and optimize their transportation processes. Reporting and analytics capabilities in a TMS helps shippers identify potential bottlenecks in the shipping process and how to improve on them.
TMS for Export Shipping Functions
Specifically, a TMS is designed to make the export shipping process easier. It helps export managers in the following ways:
Customs Clearance: International transactions require a system that supports all customs flows. A TMS assists with compliance with filing requirements and keeping on top of ever-changing regulations. The requisite documentation is automatically produced by the system, which provides compliance with regulations. This significantly speeds up the transportation process, so shipments are not delayed or denied in customs.
Security Fillings: It allows for data to be electronically submitted to customs authorities in almost any country. Some countries, such as the Netherlands, have a fully automated declaration process which syncs with government agencies.
Product Classification: The correct classification of a product is imperative to determining the right duties. A TMS will properly classify using the Harmonized System (HS) which reduces the amount spent on duties.
Denied Party Screening: Trading laws can change quickly. A TMS can reduce the chance of trading with restricted or sanctioned parties by keeping an updated list of denied parties and checking against it.
Export Shipping Management: The management of the exporting process from documentation through compliance is automated, making for faster and easier shipping.
Invoicing: International invoicing can be tedious and complicated. A TMS can automate transportation transactions so payment requests and billing are checked for accuracy and money is exchanged quickly.
These functions of a TMS allow for increased collaboration throughout the entire transportation network ensuring that all regulations are met. The standardization of all documents for compliance creates a digital chain of custody.
Verizeal for Customs Compliance
Global shipping has become a complex process. Verizeal’s TMS software offers comprehensive solutions with automated declaration and visibility to the entire customs process. And the results speak for themselves. Verizeal is able to:
- Reduce customs delays by 25%
- Eliminate up to 95% of calls to shippers for clarifications
- Reduce or eliminate unexpected fees
We help export managers be compliant by offering solutions such as documentation management, restricted parties screening while maintaining the latest regulation updates. This ensures that your business will be compliant with all international trade activities.
