Managing your imports in a tough climate
Working with your factory to negotiate better trading terms
Some manufacturers who have recently had a number of American orders cancelled or reduced may be more likely to negotiate lower minimum order quantities (MOQ). This is great news for Australian importers who have suffered in the past from failure to enter the market because of large MOQ barriers. Other options include negotiating lower deposits or enhancing your packaging to reduce its size and thus freight costs.
Work with your manufacturer to improve productivity
If you are an expert in the supplier’s manufacturing field, now is the time to help them become more efficient in their own processes. Not all manufacturers have the skills to more efficiently manage their factory and have a tendency to just throw more resources at problems rather than fix or improve them. If you have knowledge in this field and could better your supplier’s productivity now would be a good time to work together. A healthy factory could mean healthy rewards for you.
Do not cut costs on due diligence
While due diligence is an easy cost cutting action, now more than ever it is an absolute necessity. The reason being that there will be some suppliers who will no doubt be undertaking their own cost cutting activities and this will be in the form of substituting cheaper materials, packaging and processes. This could impact on your product quality and it’s unlikely you will know about it until the goods have been delivered if you don’t continue with your inspections.
The major advantage Australian small and medium businesses have when it comes to importing is that we are adaptable and innovative. Remaining positive and focused on longer-term strategies in times of economic downturn is important. In these times, it’s not sufficient to simply manage your company based on your expected profit margins, but more important to scrutinise your cash flow and think about long term sustainability. Don’t get left behind or leave a space for your competitor to move in. Stay at the forefront of your game.
* Lisa Goodhand is founder and director of China Operations at China Blueprint, a boutique consultancy facilitating business between Australia and China that provides importing, exporting, manufacturing, investment, and due diligence support: www.chinablueprint.com.au
Know your imports
Are you and your staff across your business’ import procedures? Mistakes can be costly, so if you don’t fully understand the process it’s worth your while to find out.
The Australian Institute of Export runs a two-day Import Procedures and Documentation course suitable for new importers and those already in the industry who wish to find out more about improving their importing. The course will help you to gain a practical understanding of the import process and develop import-related policy.
See www.aiex.com.au for further details
Related posts:
- Managing your business in tough times
- Easy guide to importing
- Airlines still struggling in tough climate
- The importance of recruitment in a tough economic climate
- Importing How To’s
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