Are you ready to export?

Anne Murphy - Innovi Business Growth Ltd

It would be madness to run a marathon without the right shoes, clothing or training and you would no doubt laugh if I suggested you try it. So why do some companies who want to export fail to get themselves export ready?

Carrying out market research is great for determining the best markets and channels for your products, but it does not necessarily mean a company is ready to go international. Exporting is complex and small mistakes can become big issues. So, it’s important that while you are busy marketing your products overseas, you are also giving consideration as to how you will get your products from A to B without any problems.

The following questions should get you thinking about your readiness to export. 

Are your sales contracts appropriate for international trade? 

Do they for example include the appropriate Incoterms® rule, a governing law provision and a force majeure clause? If not, seek advice and get an international sales agreement template drawn up. If anything happens to go wrong during shipment the inclusion of these clauses should make it clear who is responsible for bearing the loss.

Have the relevant staff been trained in export procedures? 

Overseas orders are often secured by a Sales Manager but it may be the customer service team who have to manage the fine detail such as payment terms/methods and Incoterms® rules. It is critical that customer service staff receive at the very least some introductory export training before the first export orders arrive. 

Do you have suitable cartons for despatching goods overseas? 

Since freight rates are generally calculated on volumetric weight, you need to check that your shipping cartons are the most efficient size for your products. After all, you don’t want your client to be paying to ship empty space. Make sure cartons are robust enough to withstand lots of handling and don’t forget the address label. It must be large enough to stand out clearly amongst all the other labels that will be stuck on your shipping carton by the time it arrives at its destination. 

Have you spoken with local freight forwarders/courier companies to determine rates and routings? 

A good forwarding company will help to find the best routes for your shipment and can provide a lot of useful advice to help the shipment of your consignment go as smoothly as possible. Get to know your freight forwarder; they could turn out to be one of your most important suppliers. 

Have you checked which documents you will need for your export consignment? 

There are a number of standard export documents but since requirements vary from market to market, it is best to check what you need for your particular consignment. Some documents may need to be certified by the local Chamber of Commerce and legalised by the Embassy of the export country. Making yourself aware of the process for this in advance can save headaches later. 

There will of course be other matters that are specific to your products and sector that need to be considered but the above pointers should help kick start the process for getting export ready. Just as with marathons, planning ahead and investing in training will help and mean that your first steps in international trade are successful and pain free.