6 Developing Resources in the Import/Export Supply Chain Management

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6 Developing Resources in the Import/Export Supply Chain Management

This chapter focuses on the trade assistance that is available to importers and exporters. In addition, the types of information that many organizations involved in trade assistance can provide are presented. Developing resource assistance in importing and exporting is a critical step to successful global supply chain management.

CHAMBERS OF COMMERCE

Many chambers of commerce provide services for members interested in importing and exporting. Services range from providing certificates of origin to supplying contacts with foreign companies and distributors. More active chambers of commerce are involved with international trade promotions and import and export workshops. They also provide access to business executives experienced in international trade.

The American Chambers of Commerce Abroad office is a valuable source of market information in any foreign country. It can supply leads on local trade opportunities, actual and potential competition, and periods of trading activity. Detailed service is supplied free to members of affiliated organizations; nonmembers usually are charged for some services.

A particularly active chamber, the U.S. Hispanic Chamber of Commerce, has established a network of trade opportunities throughout Hispanic-speaking countries.

STATE GOVERNMENTS

Export development programs are rapidly increasing at the state level and, in some cases, county and city levels. The assistance these groups offer includes education, identification of potential markets and trade leads, and help with obtaining financing and vehicles to promote exporting, like trade missions and trade shows.

U.S. DEPARTMENT OF COMMERCE

The scope of services provided by this governmental agency is vast. The International Trade Administration (ITA) is a part of the Department of Commerce and deals with U.S. exports. The ITA has many divisions, each with a variety of services and products to help companies planning to export. Working with the Department of Commerce used to be daunting, but the process has been streamlined. Now all that is necessary is to contact the U.S. Foreign Commercial Service district office nearest you for information on everything from financing aid to sales leads. There are sixty-eight Department of Commerce district and branch offices throughout the United States and Puerto Rico.

U.S. businesses can participate in trade shows and trade missions sponsored or supported by the Department of Commerce. Trade missions target specific countries or groups of countries with promising export opportunities. For a description of the various trade shows and trade missions the Department of Commerce participates in, consult the Export Programs Guide, which can be obtained by calling the Trade Information Center (TIC). The TIC can also provide additional information on upcoming trade events.

Exporters can advertise U.S.-made products or services in Commercial News USA, a catalog/magazine published ten times a year to promote U.S. products and services in overseas markets. Commercial News USA is disseminated to business readers worldwide by U.S. embassies and consulates and international electronic bulletin boards, and selected portions are reprinted in certain newsletters. Advertisement fees are based on the size of the listing. For more information, call ABP International, visit the Commercial News USA website at http://www.cnewsusa.com, or contact your local Department of Commerce District Office.

U.S. exporters can also advertise in the International Broadcasting Bureau (IBB), which is part of the United States Information Agency. IBB is the umbrella organization of Voice of America (VOA), Worldnet TV, and Radio Free Europe/Radio Liberty. VOA broadcasts almost 700 hours of programming to an estimated audience of 86 million each week. They can peg a company’s ads to different language broadcasts about a subject (for example, science and technology, health and medicine) or target the ads to a specific region or country. For additional information, contact the IBB.

The Department of Commerce’s Trade Opportunities Program provides daily private and public trade leads from U.S. embassies abroad. These leads are printed in the Journal of Commerce and other private-sector newspapers and are also available via the Economic Bulletin Board. Information on this bulletin board is accessible by Internet, modem, and fax. TIC fax retrieval document #7080 has detailed cost and ordering information for the Electronic Bulletin Board.

The Country Directories of International Contacts provides lists, categorized by country, of foreign directories of importers (showing name, address, telephone number, and other information), governmental agencies, trade associations, and other organizations in countries where the Commercial Service maintains a presence. This list represents the primary sources of contact information that each Commercial Service post thought was useful and does not represent an endorsement of any of the services listed.

The Agent/Distributor Service is a customized search on behalf of U.S. companies seeking foreign representation. U.S. commercial officers abroad conduct the agent/distributor search based on requirements specified by the requesting company. The search for agents and distributors takes sixty to ninety days and costs $250 per market. This service can be ordered from the local Department of Commerce District Office.

The Gold Key Service is custom-tailored for U.S. companies planning to visit a foreign country. It combines orientation briefings, market research, introductions to potential partners, interpreter service for meetings, and assistance in developing a marketing strategy. The local Department of Commerce District Office can provide more information on this service.

The International Buyer Program supports major domestic trade shows featuring products and services of U.S. industries with high export potential. U.S. and Foreign Commercial Service offices worldwide recruit qualified foreign buyers to attend the shows. The shows are extensively publicized in embassy and regional commercial newsletters, catalogs/magazines, foreign trade associations, chambers of commerce, travel agents, governmental agencies, corporations, import agents, and equipment distributors in targeted markets.

More information about the Agent/Distributor Service, Trade Opportunities Program, Gold Key Service, International Buyer Program, and other programs of the U.S. Commercial Service is available on the Commercial Service website, http://www.ita.doc.gov/tic, or by calling a trade specialist.

The Department of Commerce also organizes certain overseas events to promote U.S. businesses, including the following:

Trade missions. Focusing on one industry or service sector, trade missions provide detailed marketing information, advanced planning and publicity, and logistical support to participants. They also arrange appointments with potential buyers, governmental officials, and others. Participants pay between $2,000 and $5,000 depending on locations and number of countries visited. The missions usually consist of five to twelve U.S. business executives.

Product literature center. Trade development industry specialists at ITA represent U.S. companies at various major international trade shows by distributing product or service literature. In addition, trade specialists at these centers identify potential customers for companies displaying their literature.

Reverse trade missions. The United States Trade and Development Agency does not fund traditional trade missions to foreign countries, but it may fund visits to the United States by high-level foreign governmental officials to meet with U.S. industry and governmental representatives. These foreign officials represent procurement authorities of specific projects interested in purchasing U.S. equipment and services. The missions are usually cofounded by U.S. industry.

U.S. pavilions. About eighty to one hundred worldwide trade fairs are selected annually by the Commerce Department for recruitment of a U.S. pavilion. Selection priority is given to events in viable markets that are suitable for new-to-exporter new-to-market “export ready” companies. Fees range from $2,500 to $12,000.

SMALL BUSINESS ADMINISTRATION (SBA)

The SBA’s programs assist new and existing exporters who want to expand their operations. The SBA provides eligible companies with export information, financial assistance, legal advice, and training from its field offices in cities throughout the United States.

WORLD TRADE CENTERS

A world trade center brings together many kinds of businesses and governmental agencies involved in foreign trade and supplies a variety of services, from trade research and opportunities to information on governmental regulations and training programs. There are currently eighty world trade centers worldwide. For a nominal fee, you can obtain a directory of the centers from the World Trade Centers Association.

COMMERCIAL BANKS

Approximately 300 large U.S. banks have international banking departments. Located in major U.S. cities, these banks maintain correspondent relationships with smaller banks throughout the country and with banks in foreign countries. Banks frequently provide consultation and guidance free of charge to clients because their income is derived from loans to exporters and from fees for special services. Banks are sources of advice on export regulations, currency exchanges, and collection of foreign receivables. In addition, they can assist with export financing and provide credit information on potential overseas buyers.

INTERNATIONAL WORLD TRADE CLUBS

Clubs for those involved in international trade banks, traders, shippers, forwarders, customs brokers, and other service organizations conduct educational programs and organize promotional events to stimulate interest in world trade. Membership in a local association gives a company access to knowledgeable advice and benefits like services, discounts, and contacts in affiliated foreign clubs.

TRADING COMPANIES

Trading companies can take full responsibility for the export end of the business, from market research to documentation. This can relieve you of all details except filling the orders.

UNIVERSITIES AND MAJOR STATE AND COMMUNITY COLLEGES

The databases maintained by state colleges and universities often are a valuable resource. Contact the international business department or the business school to inquire if it has information relevant to your situation. You may be able to hire a graduate student to help with market research, as many schools have programs that grant course credit to students involved in this type of extracurricular work. The National Institute of World Trade (www.niwt.org) is an excellent educational resource.

SUNY Stony Brook on Long Island in New York (stonybrook.edu) has been an aggressive higher educational conduit for global supply chain and purchasing/sourcing classes at both a professional and an MBA level. Additionally, Hofstra on Long Island is also pursuing international and supply chain related classes directed towards carriers and service providers working in the transportation sector.

OTHER ADVISERS

International trade consultants can advise and assist a company with all aspects of foreign marketing, from market identification to establishing contacts with necessary resources like advertising agencies, product service facilities, and local attorneys. Trade consultants usually specialize by product category and global area. When using a trade consultant, determine the consultant’s level of experience, ask for references, and agree on the fee in advance.

Blue Tiger International (bluetigerintl.com) works with various associations providing significant access to supply chain security and compliance regulatory information. It runs a semiannual program on teaching import/export security/compliance management with “testing and certification.”

KEY PERIODICALS

One must develop several resources that provide timely information on competitors, vendors, service providers, governmental issues, and industry trends. The author reads over sixty magazines, newsletters, and periodicals every month. Below is a recommended sampling that is useful for import and export supply chain executives.

The Export Practitioner—Telephone: (202) 463-1250;

website: www.exportprac.com

The Exporter—Telephone: (212) 269-2016;

website: www.exporter.com

Export America—Telephone: (866) 512-1800;

website: www.exportamerica.doc.gov

Logistics Management—Telephone: (847) 390-2377;

website: www.Logisticsmgmt.com

American Shipper—Telephone: (212) 233-3589;

website: www.americanshipper.com

Global Logistics & Supply Chain Strategies—Telephone: (516) 829-9210;

website: www.glscs.com

Inbound Logistics—Telephone: (212) 629-1560;

website: www.inboundlogistics.com

The Journal of Commerce—Telephone: (888) 215-6084;

website: www.joc.com

Traffic World—Telephone: (888) 215-6084;

website: www.trafficworld.com

Air Cargo World—Telephone: (202) 661-3387;

website: www.aircargo.com

AFSM International—Telephone: (239) 275-7887;

website: www.afsmi.org

Shipping Digest—Telephone: (888) 215-6084;

website: www.shippingdigest.com

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