Export management company

Export management company
Primary topic
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Methods and techniques

An export management company is one of the types of firm, which acts as the department of the export for one or several manufacturers of noncompetitive products. It transacts business and solicits in its own name for salary or a commission or in the names of the manufacturers it represents. In other words, the manufacturer obtains the advantages of an export department without really having one. An export management company generally has more control and closer cooperation during working with it. There are several advantages to an export management company [1]:

  • consolidated shipments tender freight savings,
  • the manufacturer gains immediate foreign market contacts and knowledge,
  • a line of complementary products might get better appearance than just an individual product,
  • export management companies frequently offer variable costs, which might be much easier for a small or medium-sized corporation to meet,
  • the manufacturer does not have to expand exporting expertise, which saves costs and time.

Indirect approaches to exporting[edit]

The main forms of indirect exporting are:

  • export trading companies,
  • export agents or
  • export management companies.

Although there are differences between the export trading company and the terms export management company. There are often used interchangeably. The intermediary company is generally either has an office in your own country that deals with your business or is based in your own country.

Export trading companies[edit]

Export trading companies can also offer access to storage facilities and distribution channels. Many trades with Korean and Japan is led through export trading houses such as Samsung, Hyundai, Mitsui and Mitsubishi. Some export trading companies are created to market the products of a group of manufactured overseas. This is common with products such a wine and agricultural products [2].

Export agents[edit]

Export agents generally operate by representing the indirect exporters who are not in direct competition with each other. Products are purchased by some type of export agent direct from the manufacturer, repackage them and sell them overseas in their own name. Others are paid a commission on the sales which they generated and sell the products through their own contacts overseas.

Export management companies[edit]

Export management companies act either like distributors or agents and provide additional services on a retainer basis or a commission. Some export management companies tender their client companies the amenities of a complete export department. Moreover, some of the larger export management companies will take title to the goods and export on their own account. Handling export documentation and organizing shipping are included by the services offered[3].

Footnotes[edit]

  1. (A. Alkhafaji 1994)
  2. ( S. Gerald, E. Duerr 2008)
  3. (J. Westwood 2012)

References[edit]

Author: Alicja Ryszka