The Costs of In-House Exporting vs Outsourcing Exporting
May 21st, 2011 Matt Gardner
Once your company has made the decision to export your products, the next decision is to determine how you will actually manage the export process. You could opt for the traditional route and handle all of the exporting decision in-house. This means that you will find source for your products, deal with the shipping details, handle all of the licenses, ensure that your company is following all of the exporting regulations, and work on marketing and advertising your products over seas.
If your company has the infrastructure to support all of this and still have time to effectively focus on other aspects of your business, then you are in the minority. Many companies find that this is simply something they are unable to devote the necessary resources towards, which is particularly true for businesses new to exporting, or they find that they simply have no interest in dealing with these details.
If you find yourself in this situation, then you should consider outsourcing your exports to an exporting firm. What this means is that you will create the product and make it available to the exporting company. The exporting company will then handle the logistical side of getting your products overseas. This allows you company to focus on product development, advertising, and other vital operations, while the actual shipping of your products is left up to the exporting company.
The cost of hiring an exporting company is far less than hiring and training an internal staff to do all of the tasks required to effectively export. The business is highly regulated and it would take multiple full time jobs, adding to your pay roll, to staff your exporting department. You can pay a simple monthly fee, or you can get on a scalable payment plan where you pay an amount relevant to the amount of products that you ship. Regardless of your payment method, outsourcing is by and large the most affordable of the two options.
The benefits of outsourcing your export business also include not being responsible for license and regulation infractions. Export companies specialize in remaining current with export laws and regulations, and therefore minimize the chance that your business will find itself on the wrong side of the law.
Breaking export regulations can result in massive fines capable of bankrupting even large corporations. Once again, the possibility of incurring such costs is dramatically reduced when employing the professional experience of an export firm, rather than depending on an internal department to remain current with laws while juggling many other aspects of your business.About the Author:
Elymat Industries Inc. is a professional export outsourcing company. Serving the Military Aerospace Industry for 35 years, we specialize in obtaining US State Department and Commerce Department licenses to ship these products overseas.http://www.elymat.com/
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