A Quick Introduction To Import And Export Business

Jessie — Wed, 31 Dec 2008 07:35:12 +0000

With the introduction of globalization and increase in trade relations between nations, there has been an

increase in import and export of goods between countries. This serves as a great way to expand businesses

and open new markets for companies with an eye for opportunities. Globalization allows them to acquire

market share in the global economy.

In this competitive world, advertising is critical. With globalization in place, you need to be more aggressive in

your advertising as you are not only competing with local businesses but businesses across the world. This is

nature of the import and export business. Those who are able to build a good global brand name will

eventually become the market leader.

When discussing about import and export, let’s understand what it actually means. An import is any good or

service brought into a country from another country in a fair and acceptable fashion, typically for use in trade.

Imported goods or services introduce domestic consumers to newer things by foreign producers. In general,

there are two basic types of imports: Industrial goods and consumer goods.

Companies usually import goods and services to supply to the domestic market at a cheaper price and provide

goods that are superior compared to goods manufactured in the domestic market. But in total, there are 3

types of importers. First, there are those who import and sell products to the rest of the world. Second, there

are those who import from foreign sources at low prices, and they sell to the domestic market only. And then

there are those who import and sell products both to the foreign and domestic market.

An export is any specialized product, commodity or technology, shipped from one country to another country,

typically for use in its domestic market. For example, India exports Darjeeling Tea to many other nations.

Export of commercial goods normally requires trade agreements between two nations.

All businesses require B2B websites in order to advertise their products to the global market. These websites

are used by businesses for capturing and following up on buy sell requests from companies in foreign

countries. There are various kinds of leads portals where a company requiring some goods or services can

post its requirements. Usually, posting an advertisement on a B2B website only requires a small posting fee.

Companies operating in different nations can choose to join B2B web directories. Such activities automatically

generate import and export business for all members of the directories. International buyers and sellers can

post their contact information to facilitate buying and selling. As the B2B directories continue to grow,

companies find that they can import and export a wide range of products and services. Product categories

include for Automobiles, Garments, Furniture, and Electronics etc. Services may include Education,

Healthcare, Architecture, BPO etc.

Obviously, the primary goal of the company is to attain the best possible Return on Investment

(ROI).Technological advances have surely made everyone’s life easier than ever. There are a number of

export import software solutions available but one must choose based on the needs of business.

4 Critical ERP Considerations For Importers

Micheal — Wed, 14 Nov 2007 07:50:43 +0000

Businesses are increasingly relying on non-domestic production of product. Both U.S. and foreign-owned companies are purchasing their product from other countries then selling and distributing locally, regionally, or nationally.

Enterprise Resource Planning (ERP) solutions for companies that import product should have comprehensive features which facilitate the importing process. These include multiple warehousing, comprehensive product tracking from factory to available-to-sell, multiple currency processing, and a flexible bar code system.

When making an ERP decision, don’t neglect asking the tough questions of your potential software supplier. Often these complex issues are glossed over at the time of software evaluation.

Multi-Warehouse Capabilities: You may have an overseas warehouse, a consignment warehouse, a warehouse for when product hits the water and another when it lands at the dock. This is further complicated when the factory has partial purchase order shipments combined into a single container shipment. When the product needs to be received into the ERP system, many ERP systems do not receive by container – they receive by purchase order. The solution – container receiving – is becoming much more common.

Extended Product Tracking: It’s crucial that the inventory levels are tracked and managed from the factory to the water to the dock to your U.S warehouse. If not, sales and customer service won’t be able to accurately inform end users (the buyers) when product is arriving or available.

Customer service and sales are critical factors in the supply-chain management of a business that imports its product. Many times, the order entry team is relying on the Quantity On Hand and Quantity Available numbers when communicating to customers. A comprehensive solution will have a Customer To Promise (CTP) date based on the expected receipt of the product. This could mean arrival at the dock or at the inventory warehouse. Customer service and sales need to be able to trust the inventory counts to be accurate. Their success is dependent on honest and accurate communication to the customers.

Sometimes a domestic company will want to see what is on the factory floor. Integrating factory activity with the domestic branch’s warehouse can be a huge challenge unless each company is on the same system. Many clients end up writing their own custom extranet program to allow such visibility. Another alternative is to allow remote logins to each system. Finally, programming routines can be written to allow data export and import functionality.

Multi-Currency Capabilities: Some companies can simply demand that the sale always take place in U.S. dollars. However, for most, it is important to have an ERP system with strong multi-currency functionality. Further, exchange rates can be tricky to maintain and extra user training is needed to ensure that users understand common terms (base currency, home currency, etc.), and how to process both international receivables and payables transactions.

Bar Coding Capabilities: Importers should have a strong bar coding system that integrates with their ERP software. The bar code solution should allow for product receiving, shipping, physical counts, transfers, and issues. The bar code solution should also be able to read an alternate bar code (e.g. manufacturer’s number), and convert the symbols into the client’s inventory SKU.

These and many other factors should all be considered during your ERP software evaluation. You’ll sleep better knowing that you’ve made an informed decision that fully considered your needs as they relate to importing product.

Business Blog :: Business Services » Import and Export

A Quick Introduction To Import And Export Business

4 Critical ERP Considerations For Importers