U.S./Mexico Shipping Series Part 2: A Presence on Both Sides of The Border.Transportfolio
When I kicked off this series about U.S./Mexico cross-border shipping, I covered some of the key benefits of a door to door service provider. In this second installment, we’ll explore the reasons why many best in class customers prefer working with cross-border providers that have long-standing offices in both countries.
Cross-border shipping is complex, but a logistics supplier with offices in the United States and Mexico can provide the knowledge and services that help deliver a smoother cross-border shipping experience. Here are three reasons why you might want to consider a provider with boots on the ground in both countries.
A provider’s experience is your advantage. When you work with a provider with offices on both sides of the border, you’re working with knowledgeable people who truly know the nuances and intricacies of cross-border shipping. A provider that has worked with a wide range of customers over an expanse of time has had the opportunity to form strong relationships with the right vendors, implement the right software, and refine processes—and they’ve already paid for all infrastructure development and learned applicable lessons that only experience provides. With those important pieces already in place, your provider can focus on your company and execute based on your needs, whereas a startup provider might have to dedicate valuable time to figuring out how to run their own business.
Leverage the power of an established provider. A provider with a vast and varied customer base shares a wider range of best practices, offers more competitive rates, works with credible vendors, and is more likely to have attracted top logistics talent. An established provider can also provide more flexibility, because they have the ability to meet a larger spectrum of service requirements. You want a provider to already have effective, proven processes in place, and to proactively offer the solutions that will help you reach your company’s supply chain goals.
An established provider should also have legal entities in both countries. This allows the provider the highest level of flexibility in how they invoice for their services. It’s common for a single cross-border move to be billed in two different currencies to multiple legal entries in order to maximize tax deductions and offsets. A provider that can’t bill with that flexibility can put you at a disadvantage.
What’s more, an established, knowledgeable provider with offices in both countries is better suited to step in and mitigate challenges when difficulties arise, because their employees are located at the heart of the action, ready to represent your interests.
Build stronger relationships. Face to face relationships and familiarity with vendors and facilities on both sides of the border are important—and they’re a good way to gain a clear understanding of the environment and local transportation marketplace. When your provider has existing, longstanding relationships with carriers, warehouses, and customs brokers in both countries, you benefit. Your provider can connect you with people who know the ins and outs of cultures, local market forces, and common business practices in both countries—all things that are a crucial part of making smarter decisions for your cross-border supply chain.
Look for the next post in this U.S./Mexico cross-border shipping series in the coming weeks, which will discuss measuring total cost of ownership, not just rate per mile. In the meantime, you can learn more about the steps involved in crossing the border in our white paper, U.S.-Mexico Shipping Options.