Supply chain operations are becoming a strategic advantage rather than a background operation in today’s highly competitive global market. Manufacturers often need to transport raw materials, components, and finished products seamlessly across continents and borders, while meeting demanding production schedules.
They are under constant pressure to enhance efficiency, lower costs, and streamline operations while meeting customers’ needs and expectations. Selecting the right logistics partner can have a significant impact on the supply chain as a whole as well as a company’s ability to achieve its business goals. Let’s explore the advantages of partnering with a logistics provider that offers both international and domestic logistics in North America, along with value-added services such as customs brokerage.
Why a Comprehensive Logistics Provider Matters
Logistics is more than just moving freight from one location to another; it involves developing solutions tailored to a supply chain’s specific needs, allocating resources effectively, complying with customs requirements, and minimizing risk to ensure smooth production operations. By collaborating with an experienced logistics provider, manufacturers can identify opportunities for optimization and ultimately drive operational success. Here’s how the right logistics partner can make a difference:
1. Enhanced Flexibility and Cost Efficiency
A global logistics provider with comprehensive service offerings can modify its services to meet the specific needs of each manufacturer it serves. They can provide options during peak production times or when entering new markets, adapt quickly to changing market demands, and scale logistics operations up or down as needed.
Through their established global networks and flexible service offerings, they can:
- Streamline international and domestic needs under one provider,
- Leverage economies of scale to handle fluctuating demands and production schedules,
- Access diverse transportation modes and negotiate better rates.
Integrating various logistics services can reduce service overlap, create greater efficiency across the supply chain, and lower operational costs. It also eliminates the need for multiple service providers, which in turn can help lower administrative costs and simplify billing processes.
2. Reduced Complexity, Especially at the Border
When a logistics provider also offers customs brokerage, it helps manufacturers effectively manage the complexities of customs regulations and compliance. An understanding of both international logistics and domestic requirements is highly beneficial, particularly in U.S.-Mexico trade, where billions of dollars in automotive and industrial transactions occur annually.
Having a logistics partner that includes customs brokerage streamlines the process by:
- Integrating documentation and compliance processes into the logistics plan.
- Pre-clearing shipments and coordinating border drayage.
- Resolving issues proactively to prevent delays and production downtime.
The varying regulations, documentation requirements (such as the new Automatic Export Notification in Mexico), and changes to customs processes can create challenges or potential delays if not handled properly. Since even a few hours of customs delay can halt an assembly line, a provider that manages both transportation and clearance keeps parts flowing smoothly.
3. Flexible Solutions Across All Modes of Transportation
Each mode of transportation offers its own unique set of benefits. Having access to multiple modes and the ability to develop an optimized solution tailored to specific needs can significantly reduce costs and improve delivery times.
Automotive and industrial supply chains often require a mix of international and domestic modes:
- Ocean freight for bulk components and imports from around the world
- Air freight for high-value or urgently needed parts,
- Consolidation networks, Truckload, and less-than-truckload (LTL) within North America,
- Intermodal solutions that balance cost and speed.
Having access to a logistics provider that offers a full range of transportation options is invaluable as it helps align transport mode choices with production schedules, cost targets, and customer requirements. Logistics partners with integrated services offer the ability to flex capacity up or down, switch modes quickly when needed, and leverage economies of scale across global and domestic networks.
4. End-to-End Supply Chain Visibility
Automotive and industrial manufacturers source components from around the world, often transporting them to production plants across the U.S., Mexico, and Canada. Managing separate providers for international freight, domestic distribution, and customs clearance frequently creates disconnections that result in data gaps, communication delays, and operational blind spots.
Manufacturers can create a more unified supply chain when partnering with a single logistics provider that can handle:
- Ocean and air imports from Europe or Asia,
- Cross-border trucking between the U.S., Mexico, and Canada,
- Intra-U.S. domestic transportation, and
- Customs brokerage and compliance.
Integrating international and domestic logistics through end-to-end solutions allows manufacturers to rely on a single point of contact, while achieving proactive alerts to market changes and gaining real-time visibility across the entire supply chain. Enhanced tracking technology enables the monitoring of freight at every stage, ensuring transparency. Shippers can also identify potential issues earlier, make informed decisions based on data, and overcome unexpected disruptions with greater agility.
5. Value-Added Services that Support Production
Beyond moving freight and customs brokerage, an experienced logistics provider can offer a range of value-added services that enhance the supply chain. These services may include warehousing and distribution, inventory management, and more. Value-added services that directly support manufacturing operations include:
- On-demand and expedited services for time-critical needs,
- Vendor Managed Inventory (VMI) programs,
- Sequencing and packaging at cross-dock or near-plant facilities,
- Specialized handling for oversized, hazardous, or high-value parts.
For automotive and industrial manufacturers, having access to these services through a single provider simplifies logistics management and improves operational efficiency. When these services are integrated into the transportation network, the supply chain becomes leaner and more responsive. For example, sequenced delivery of parts to a plant in Mexico, timed precisely with production lines, reduces inventory at the plant and frees up working capital.
6. Risk Reduction and Business Continuity
The logistics industry continually faces numerous risks, including geopolitical issues, natural disasters, port congestion, and customs updates. A logistics provider with a comprehensive understanding of both international and domestic markets can help manufacturers mitigate these risks by:
- Building alternative routing options and capacity plans,
- Hold critical inventory in key North American hubs,
- Proactively manage customs compliance to avoid penalties.
Through solution design and continuous improvement measures, they can develop contingency plans that address potential disruptions and build resiliency in the supply chain. Their experience in navigating various regulatory environments also gives manufacturers peace of mind, knowing that their logistics partner is well-equipped to handle unexpected challenges and can adapt without interrupting production.
7. Enhanced Collaboration with Better Data
A logistics provider that manages both international and domestic logistics fosters better collaboration and communication throughout the supply chain. With separate providers, shipment and compliance data live in multiple systems. An integrated provider can offer a single, unified platform that combines:
- International shipment status,
- Domestic transport milestones,
- Customs clearance updates, and
- Cost data by lane, mode, and product.
With a single point of contact, manufacturers can easily communicate their needs and expectations, ensuring that everyone is aligned towards common goals. Manufacturers gain complete visibility into cost drivers, supplier performance, and delivery trends, enabling them to make more informed decisions for their sourcing and logistics strategies.
8. Supporting Growth into New Markets
For manufacturers expanding into new regions — for example, a U.S. manufacturer opening a plant in Mexico, or a Tier 1 supplier exporting to Canada — a partner with integrated international and North American networks simplifies the process:
- Sets up compliant trade lanes quickly,
- Guides customs classification and duty mitigation,
- Aligns domestic distribution with global sourcing strategies to optimize efficiency and effectiveness.
For example, a provider with a North American network and an office in Europe can coordinate inbound parts by sea, then move them efficiently into the new Mexico plant.
In an increasingly complex environment, manufacturers can significantly benefit from partnering with a logistics provider that offers both international and domestic logistics, as well as customs brokerage and other value-added services. That kind of partnership isn’t just helpful — it’s essential. By leveraging the expertise of a capable logistics partner, manufacturers can streamline their operations, enhance flexibility, and create comprehensive transportation solutions.
TOC Logistics is a full-service freight forwarder with comprehensive offerings for global end-to-end logistics solutions. Our team focuses on key east-west routes between Europe/Asia and North America. Contact our team today to discuss your international shipping needs.