In today's competitive global marketplace there are many benefits to
importing goods and services, whether you do it regularly or on an ad hoc
basis.
Types of products imported:
Raw materials
Components/parts
Finished goods
MRO (Maintenance, Repair and Overhaul) services
Technology
Advantages
Sourcing products from overseas may
help you to:
Reduce costs
Take advantage of favourable exchange rates
Access products and technologies not available
domestically
Provide product variety
Offer better quality products
Overcome domestic shortages
Reduce dependency on a limited domestic supplier
base
Disadvantages
There are, of course, certain
risks when importing:
Financial - currency exchange rate fluctuations and
tariffs
Political - embargoes, sanctions or quotas on imported
goods
Operational - goods arrive late or damaged
Regulatory - products may be subject to UK or EU standards,
and may require product testing and certification
Cultural - negotiations fail or are delayed because of
language and cultural barriers
Plan your requirements
The first step in
sourcing products from overseas is to plan your requirements:
Objectives - what do you hope to achieve by
importing?
Products/services - what do you wish to import? Be as specific
as possible
Additional requirements - will you need after-sales
support?
Warehousing - how and where will you store the imported
goods?
Lead times - how quickly will you need the goods?
Budget - will importing goods be cost effective? Be aware of
hidden extras
Sourcing products
Depending on what products
you require and their respective availability you may have a wide or limited
choice of suppliers. Key steps to follow:
Identify countries that supply required product
Identify specific suppliers from your preferred
country(s)
Assess any country or regional opportunities
Conduct a financial analysis
Identify any risks
Choosing a supplier
You may decide to buy
directly from the manufacturer/service provider or to use an intermediary.
Whatever method you choose, there are some key factors to consider when
choosing an international supplier:
Do the products/services meet your requirements?
How many years have they been operating for?
Are they financially stable? Make sure this is
verified
Do they have any quality marks? Are these UK
recognised?
Who else do they supply? Can they provide
references?
Do they belong to any trade bodies or professional
organisations?
What are their delivery schedules?
Are their terms & conditions satisfactory?
Sourcing suppliers
Finding the right
international supplier can be daunting, begin by:
Asking business colleagues to recommend a supplier
Searching the web for international directories of suppliers
providing the products/services you require
Contacting trade associations, local embassies and DTI trade
desks for a list of potential suppliers
Reading international trade reports on key suppliers in your
industry
Visiting the country of interest on a fact-finding
mission
Preparing the contract
Once you have found a
supplier, ensure that you draw up a contract that is satisfactory to both
parties. Include:
