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Discover how automated consolidation and advanced shipping technology streamline cross-border shipping
International borders are meant to separate countries, not slow down the movement of goods. However, when it comes to international logistics, those lines on the map can create major complexity and inefficiencies. Additional fees, longer lead times, carrier coordination, and country-specific rules and regulations are just a few of the challenges shippers face.
While finding a way to cross the invisible line between countries with efficiency may feel overly complicated, it doesn’t always have to be. Transborder consolidation is a strategy modern cross-border shippers use to break through those limitations. The key idea is moving shipments smarter, not focusing on the quantity of what’s being sent out.
Leading multi-carrier shipping solution providers enable shippers to leverage transborder consolidation functionality within their existing workflows. By combining multiple shipments into a single, more efficient shipment before they cross the border, businesses can save time, reduce costs, and minimize customs complexity, building a more scalable way to manage international deliveries and a faster process to get products into the customer’s hands.
Let’s take a closer look at how transborder consolidation works and why top-tier brands are turning to this strategy to streamline their cross-border shipments.
Transborder Consolidation Explained
To put it simply, transborder consolidation is the process of combining multiple cross-border shipments into a single shipment to increase efficiency. While some international shippers send out hundreds of smaller packages one at a time, businesses who leverage this approach consolidate those shipments together in a smaller load, allowing them to travel simultaneously across the border. Once they reach their destination, the packages are then broken down for final delivery to the end customer.
What Are the Benefits?
Using transborder consolidation provides three main benefits for shippers:
- Higher Cost Savings: By consolidating smaller shipments, businesses can reduce the number of international shipping transactions, avoiding repetitive transportation and customs fees.
- Operational Efficiency: Consolidation helps streamline documentation, enable quicker customs clearance, and optimize package routing, simplifying cross-border processing and minimizing delays at the border.
- Increased Scalability: By shipping packages more efficiently, logistics teams can free up more resources and better manage higher volumes during peak seasons or business growth.
While this model brings several perks to shippers, transborder consolidation capabilities within an advanced multi-carrier shipping software (MCSS) platform amplify those benefits. Leading MCSS solutions automate consolidation processes, helping shippers determine which packages to combine for maximum efficiency. This technology also optimizes carrier selection, picking the best, most cost-effective carrier for each shipment. Additionally, MCSS simplifies international documentation by automatically generating the correct customs paperwork required for the shipment in advance, eliminating costly documentation errors and keeping shipments moving.
Transborder Consolidation in Two Steps
Like anything involving cross-border transportation, international shipping requires careful planning and ample visibility. Advanced multi-carrier shipping solutions ease the pressure of shipping across borders each step of the way with tools like automation, real-time tracking, and workflow optimization. Transborder consolidation is typically broken down into two separate steps, or a two-leg shipment:
Leg 1: Line Haul to Induction Hub
The first step is transporting the consolidated shipments from either the warehouse or distribution center to an induction hub in the destination country. This step is usually handled by a line haul carrier, or a provider who specializes in moving shipments over long distances.
In leg 1, multi-carrier shipping software can play a major role. By analyzing volume and shipment destination, MCSS helps identify which packages to consolidate. Rate shopping functionality is then applied to automatically compare carriers and rates to select the best-fit option and transportation route for the shipment. Finally, the software generates crucial paperwork for cross-border shipments, ensuring the goods can move smoothly to their next destination.
Leg 2: Induction Hub to Final Destination
After the consolidated shipment arrives at the induction hub, it is separated into the original individual packages. The smaller packages are then handed off to local or regional carriers for final delivery to the end customer, completing the shipment journey.
Much like leg 1, MCSS can automatically select the best regional carrier or last-mile delivery service while enabling real-time tracking for full visibility and managing potential shipping exceptions.
From international efficiency to last-mile accuracy, advanced multi-carrier shipping software plays a crucial role in end-to-end shipping efficiency and customer satisfaction.
The Cross-Border Advantage: Varsity Logistics Shipping Software
How do shippers get the most out of their transborder consolidation strategy? By streamlining and automating each step of the process, from selecting packages to consolidate to executing the final-mile delivery. Varsity Logistics multi-carrier shipping software can do just that, making it an invaluable solution for international shippers.
Varsity Logistics, the only holistic MCSS platform for shippers on the IBM i, offers a comprehensive suite of shipping modules designed to streamline both parcel and freight shipping. Integrated with Varsity’s ShipSoft-Freight, the advanced FreightPlan software module enables shippers to manage and execute the entire transborder journey within a single, centralized platform.
With FreightPlan, shippers unlock an efficient transborder consolidation process, including:
- Optimized Carrier Selection and Routing Logic: Varsity’s advanced rate shopping compares carrier rates, routing guides, and compliance requirements. This functionality automatically selects the best carrier and route to achieve the maximum cost-effectiveness and service compliance for each shipment.
- Automated Load Planning and Consolidation: Varsity automates both inbound and outbound pre-shipment load planning. By leveraging the users’ pre-defined business rules, it generates and recommends consolidation plans for both less-than-truckload (LTL) and full-truckload (FTL) shipments.
- Online Load Plan Review and Acceptance: Varsity’s FreightPlan analyzes raw shipment data to create detailed shipment plans. These plans outline everything from driver logs and shipping instructions to cost-saving comparisons against alternative carriers.
- Tailored Business Rules and Compliance: Configure your FreightPlan software to align with your unique business rules, ensuring every shipment meets customer requirements, delivery timelines, carrier rules, and routing guide compliance regulations.
- Increased Operational Speed: FreightPlan’s automated workflows eliminate time-consuming manual processes like generating load plans, minimizing costly errors and freeing up valuable resources.
Cross-border shipping is efficiency-reliant. Varsity Logistics software suite also provides end-to-end visibility, giving shippers the full picture of their cross-border operations. By combining Varsity’s advanced multi-carrier solution with automated transborder consolidation processes, businesses are empowered to monitor their freight, validate compliance and service levels, and optimize their load plans. The result is better control, significant cost savings, and operational scalability, even across borders.
Ready to join the shippers leveraging transborder consolidation to simplify their cross-border strategy? Discover how Varsity Logistics can help you achieve smarter, more efficient shipping, from consolidation to delivery. Reach out to our team today or schedule a pressure-free demo at any time.
