Inventory 

From a logistics perspective, inventory decisions are high-risk and high-impact because the inventory assortment and subsequent shipment to a market or region in anticipation of future sales will determine a number of logistical activities and you should want to maintain sustainable time and cost efficiencies. 

The holding of inventory is risky because of the capital investment and risk of obsolescence. 

First, investments in inventory cannot be used to obtain other goods or assets that could improve your company’s performance.On the flip side, funds supporting inventory investment must be borrowed, increasing the firm’s interest expense.

Second, you run the risk of the product being pilfered or becoming obsolete while in storage.

Freight Forwarding/Transportation

A Freight Forwarder is among the best sources of information and assistance on U.S. export regulations and documentation, shipping methods, freight costs, and foreign import regulations. 

Click here for details on why and how to choose one for your firm, plus a link to Freight World. 

Export Formalities

Export licenses, bills of lading, and certificates of origin are only three of the specialized documents used in exporting.  Unless your company employs individuals specialized in handling documentation, you should strongly consider utilizing the assistance of a Freight Forwarder. 

A Freight Forwarder acts as an agent in the shipment of freight to or from foreign countries and the clearing of freight through customs.  The services they offer include full and accurate preparation of documentation, arrangement of shipments, warehousing and delivery, and export clearance. 

Click here for brief discussions of the most commonly required  documents. 

Banking

A crucial concern for exporters is receiving the agreed payment for a shipment.  Another, related concern is the avoidance of delay, or obstruction in the payment process.

Banks are the most familiar institutions, but there are several other private and governmental entities that should become familiar to companies as they inaugurate and expand export marketing activities. 

Click here for more information.  

Customer/Product Service and Warantee Administration

After sales service should be an integral part of any company’s export strategy, but customer expectations differ from country to country.  A rule of thumb is to provide services at least comparable to those of the dominant competitor within each market.   This can be key to establishing a reasonable competitive position. 

Click here for definitions and guidelines. 
 

In the export environment there are laws and regulations governing the manner and extent to which you are free to conduct business. 

Although a separate tutorial could be devoted entirely to legal issues, we will introduce the topic by listing a few of the most commonly met issues:

  Export Licenses,
  Intellectual Property Protection,
  International Contracts and Agreements, and 
  Tips for Complying with Export Regulations and Licensing Requirements.

The nature of trade associations will differ in their range of activities, but they are a great source of valuable information. For example, some may maintain files on trends in international trade such as export flow from the region or trends that will affect international marketers.  Some may supply demographic information on exporters within the region that consists of data compiled from its members.  Though it may provide a generalized depiction of a situation, this information can stimulate valuable market/industry insights. 

Trade associations can also be an excellent place for you to meet other people who are involved in international trade, such as importers/exporters and the various government and private sector service providers.  Most metropolitan areas have a trade association or world trade club organization, which can be identified through your local library, as they will have publications that list thousands of industry and trade associations nationwide.