Why Outsource International Sales to an Export Management Company?
In today’s fast changing marketplace, companies considering international sales must evaluate many more options than in the past and process far greater amounts of information in order to make sound strategic decisions and capitalize on opportunities without costly missteps.
Most countries work under a complex mix of approvals, permits, security initiatives, compliance regulations and customs formalities surrounding import and export transactions. Additional factors such as language barriers, cultural differences, multiple currencies and changing exchange rates all serve to make international trade even more of a challenge.
In Today’s Global Economy Collaboration is a Core Competency
As the global economy evolves, the international supply chain grows more sophisticated, requiring specialized knowledge of these complex regulations and procedures. In response, many companies turn to outside experts with specialized skills to substitute for in-house functions. More and more business is done through partnering and collaboration because increasingly value creation requires specialized skills that no single company can master alone. This allows a company to keep their internal resources focused on core competencies, and among the most essential is effective collaboration through outsourcing.
To be successful, an exporter must be prepared to directly undertake or closely supervise every aspect of the foreign sales effort, including market research, regulatory compliance, marketing, sales, shipping, distribution, credit risk management and receivables collection. Consequently, significant commitments of both management time and resources are required to achieve optimal results.
Many companies find it challenging to commit adequate staff time and resources to a dedicated international sales program and for those who cannot make that commitment the services of an Export Management Company such as the Johnson Group are indispensable for realizing positive results.
Advantages to Using an Export Management Company
- A turnkey outsourced solution is less costly than creating a department in-house
- An experienced specialist is more effective and produces faster results
- No new specialized staff required, lower administrative costs
- Eliminates international travel, sales expense and staff time away
- Reduces risk of loss and costly errors
- Ensures compliance with government standards and regulations
- Overcomes problems with cultural and language barriers
- Consistent customer service and post sales support sustains competitive advantage
- A focused and dedicated effort produces better results and increases sales growth faster
Just as a dedicated sales department is necessary for the U.S. market, significant results in international markets can best be achieved with a focused and committed effort, one that requires a different set of specialized skills and expertise. Using an intermediary makes marketing resources available immediately that smaller firms would need years to develop on their own.
Whether you are new to the prospect of exporting, or presently handling limited international orders, there is no substitute for a well planned, dedicated and focused international sales program to see real growth in bottom line results. Collaborating with an Export Management Company such as the Johnson Group provides a ready solution to entering new markets that is more cost-effective than doing it in-house, reduces risk and achieves sales growth faster than going it alone.
