As globalization continues to break down barriers and blur international borders, businesses of all sizes are increasingly looking for efficient and cost-effective ways to manage their ever-expanding supply chain operations. One popular solution is the use of transport management systems (TMS), which help companies streamline their shipping processes both domestically and internationally. But as businesses tackle complex global logistics challenges, says Benjamin Gordon, many wonder if it’s necessary to maintain separate domestic and international TMS programs. Read on to find out how TMS integration can save time and money while ensuring your products arrive at their destination safely.
Benjamin Gordon On Domestic, International TMS: Is Separate Management Necessary?
According to Benjamin Gordon, the question of whether separate management is necessary for domestic and international transportation management systems (TMS) has been a source of debate in the logistics and supply chain industry. Separate management can be defined as having distinct procedures, processes, and controls for the different types of TMS. Separating domestic from international operations may provide advantages in situations where the two are vastly different.
There are several aspects to consider when deciding whether or not separate management is necessary. Domestic TMS typically only requires knowledge of local regulations and customs, while managing an international TMS necessitates an understanding of multiple countries’ laws and regulations regarding trade compliance, taxes, duties, grounding requirements, etc. Separate management could provide more focus on each type of TMS and allow for more specialized resources to be allocated. Separating the two systems could also reduce costs associated with training, as different people would have greater expertise in their respective areas.
On the other hand, some argue that there are advantages to having a single unified system that is used across all operations regardless of region. This, as per Benjamin Gordon, could help streamline processes and increase efficiency by eliminating the need for dual data entry or double-checking shipments between two separate systems. Additionally, one unified system would provide visibility into all stages of the supply chain from end to end, which could result in better decision-making.
Data shows that it depends on each company’s individual situation when determining which approach is best for them. A 2017 survey of worldwide logistics professionals found that 46% of respondents used separate management for domestic and international TMS, whereas 33% managed both with one unified system.
For example, Amazon has separate systems in place to manage its global supply chain. The company uses different software systems based on the region where the shipment is coming from or going to. This allows Amazon to take a more tailored approach when managing shipments between countries and ensures they meet all specific import and export regulations.
Benjamin Gordon’s Concluding Thoughts
At the end of the day, whether or not separate management is necessary for domestic and international TMS depends on each company’s individual needs. According to Benjamin Gordon, separate management could provide advantages in situations where the two are vastly different, but there are also benefits to having a single unified system. Companies should assess their operations and make a decision based on what works best for them in order to maximize efficiency and profitability.