Common Issues of International Logistics and How to Solve Them
Common Issues of International Logistics and How to Solve Them
International logistics poses significant challenges compared to domestic operations. When goods are imported or exported, laws dictate the process. There are all sorts of logistics problem examples. Transporting goods overseas can be costly and difficult to track. Language barriers and cultural differences can interfere with working relationships.
Fortunately, partnering with a third-party logistics provider can help companies solve these problems and other issues before they arise. Learning to manage international logistics problems and solutions helps businesses thrive.
1. Customs and Regulatory Compliance
In an international marketplace, goods and services often cross country borders, which can pose challenges for smaller businesses. Each country has regulations and processes surrounding imports and exports, requiring extensive knowledge to navigate them. Smaller-scale companies may lack the overhead to invest in specialists for business compliance.
When you outsource international transportation to a global 3PL provider, these challenges dissipate. Atlas International utilizes an expansive global network of transportation and warehouse providers.
2. Visibility and Tracking Across the Supply Chain
Maintaining end-to-end visibility across the supply chain is critical for optimization but can be difficult to implement. Visibility gaps can lead to lost goods or delivery delays. To improve the accuracy and reliability of order fulfillment processes on the business’ end, a strategy for visibility must be implemented. Today’s customers expect to track their shipments at every stage of transportation.
One of the simplest ways to solve this issue involves partnering with a 3PL company, such as Atlas International. These providers offer access to key technology in a cost-effective manner. Atlas International utilizes advanced technology and data integration during this process, including the secure Atlas Track and Titan Electronic Account Management systems that provide online access to track shipments and any necessary documentation pertaining to them.
3. Logistics Cost Management
Logistics on a global scale face additional cost challenges. Fluctuating exchange rates, tariffs and hidden fees can cause prices to change frequently. This can be challenging to navigate for businesses shipping to several countries.
Outsourcing these tasks to global 3PL providers means a company doesn’t have to worry about navigating cost management. Atlas International employs its global networks and extensive experience navigating the turbulent costs. By partnering with global networks, costs can often be reduced due to the economy of scale. Atlas Logistics finds ways to optimize your supply and distribution channel, which results in budgets stretching further and reduced wait times for shipments.
4. Cultural and Language Barriers
Operating on a global scale often brings challenges due to cultural and language differences. More specifically, a language barrier can make it difficult to exchange information across the supply chain. Companies may face delays or miscommunications that result in customers not receiving their products as expected.
A difference in culture can also directly impact global logistics. Different countries may have different cultural protocols or business operation habits that lead to disconnects in expectations or provided services. Politics and laws can create additional roadblocks for foreign supply chains. Working with a 3PL company that's well-versed in the countries you work with can help you overcome this challenge.
Atlas International has worked globally for decades. This experience has helped our team develop multilingual capabilities and a deep understanding of navigating multicultural working relationships.
5. Inventory Management and Warehousing
Inventory management and warehousing are critical aspects of any global supply chain. Without careful planning and logistics execution, lead times between when a consumer purchases and receives a product become longer. Storage requirements for certain goods, such as foodstuff, electronics and other delicate devices, also need to be considered.
Even when operating a domestic supply chain, these challenges can arise. Companies need access to strategically placed warehouses where goods can be stored correctly and shipped quickly to consumers. Think of businesses such as Amazon, which has distribution warehouses in major cities across the US. Amazon, in particular, has over 100 distribution warehouses in the US alone, poising them to deliver on their rapid order fulfillment promises more often than not.
With 3PL providers, businesses gain access to warehouses worldwide that utilize robust inventory management technology to track and forecast sales. This helps reduce the likelihood of items going out of stock or taking too long to reach customers.
Atlas International provides comprehensive solutions for inventory management and warehousing. With over 1,000 warehouses in North America and partnerships with overseas warehouse operators, our team can ensure your items are properly managed. The addition of detailed freight tracking, inventory management and data analytics help streamline operations all the way to the final mile delivery.
6. Transportation and Delivery Challenges
Consumers expect to receive their deliveries promptly. To remain competitive, companies must meet customer demand with quicker turnaround times and better accuracy for deliveries. Companies have to consider rising fuel costs, the costs of maintaining equipment and how to ship their items. Route planning and delivery coordination can further complicate this process.
Outsourcing these critical supply chain components lets companies trust their logistics provider to oversee them. Atlas International expertly leverages its global transportation network for this process. With the ability to handle ground, expedited, air, sea, intermodal and climate-controlled transportation and access to a vast global warehouse network, we can overcome the biggest challenges in providing quick, cost-efficient transportation and delivery.
7. Other Issues
Other issues can also arise in international logistics. Scalability is a major one. Depending on the goods your company provides, there may be certain times when business is busier than others. For example, holidays require many warehouses and companies to invest in extra seasonal employees. Outsourcing your global logistics to Atlas International means you don’t have to worry about this process. We can scale up and down to suit your business’ needs.
Inventory forecasting is also important. Some items may sell better to certain audiences or only be in demand during certain times. For example, swimsuits aren’t likely to sell well in Greenland in the dead of winter. By utilizing data analytics, Atlas International can forecast inventory and strategically stock warehouses based on expected sales to reduce bottlenecks in fulfillment time.
Partnering With Atlas International for Seamless International Logistics
Operating a business that sells beyond borders can pose significant challenges, from language barriers to legal regulations and inventory management. While these issues may be challenging for businesses to overcome independently, a strategic partnership with a 3PL provider can help.
Atlas International provides comprehensive international logistics solutions by leveraging extensive experience, cutting-edge technology and a vast global warehouse and transportation network. If your business needs global reach with advanced logistics capabilities, connect with Atlas International. Schedule your consultation to learn how our international logistics expertise can benefit your business today.