The exports plan and its importance for logistics

Even though creating an exports plan does not guarantee the success of an international effort, it does help make the processes to achieve said success more efficient.

The goal of this plan is to outline the objectives, activities, restrictions, and timelines that support the exports and help measure results as well as engage the staff involved.

Some of the benefits of having an exports plan are, acknowledging the company’s position in relation to the external markets; analyzing risks beforehand, and creating a contingency plan to overcome them; learning even more about the final markets; and improving the relationships with suppliers, sales agents, and financial institutions.

Before we create an exports plan, we need to identify and gather information about the company and its exports requirements. For example:

• Product or Service: Its features and the needs it satisfies in the international market; special adjustments; licenses or certifications; packaging modifications.
• Price: shipping costs; customs duties; taxes; price strategy; and intellectual property.
• Promotion: adjustments to marketing strategies; e-trade platforms; social media; fairs, and expos.  
• Administration: exports’ goals; company’s commitment to exports affairs; return on investment expectations.
• Experience: countries we deal with; product lines; domestic and foreign competitors; lessons learned.
• Staff: experience in international affairs; languages; structure of the exports department; executive staff.
• Manufacturing: current capacity; additional manufacturing cost; workloads; minimum manufacturing requirements; packaging of exports’ products.
• Finance: capital for exports and trading; operational costs of the exports department; initial expenses; other development plans; return on investment; credit; cash flow; liquidity; profitability.
• International scopes such as exports prices; international logistics; exports and imports requirements; tariff barriers; contracts; payment methods; management of containers and insurance; as well as aspects of the country we wish to export to and the social, financial, and industrial trends of the target audience and the above-mentioned country.

With the information described above, we can create the exports plan. It does not need to be a long document, rather a concise one that is clear to all the parties involved.

Basic outline of an exports plan

Even though an exports plan does not have a default structure because it depends on the features of each company, the following outline may serve as a guideline:

First section: the company’s current situation and background

To begin, we should describe the company’s current situation and background as well as the products or services we wish to export and their classification; licenses and trade agreements; information about the sector, competitors, and operations; and the technical, technological, and human capacities both inside and outside the company. Moreover, we suggest including a SWOT analysis to help pinpoint the company’s position within the market and in respect to its competitors. 

Second section: trading

In this section, we establish the short-, medium-, and long-term goals; we find, assess, and choose the markets; the prices (considering due taxes and obligations); the distribution methods; the sales goals and forecasts; the possible losses or gains; the terms, costs, and conditions for the logistics and freight; and the tariff barriers.

In addition, we recommend using this section to specify if the company has an advisor for international trade or a strategic partner as well as the functions they may have. Likewise, it is a good idea to clarify if the company has exports credit or insurance coverage to protect it from wars, expropriations, cancellation of permits, and cancellations carried out by the government.

Third section: tactical tasks

In this section, we cover the activities to be carried out, considering the main and secondary countries to which we want to export; the indirect marketing efforts; and the quarterly achievements.

Fourth section: budget

The fourth section aims to assess the exports’ costs, to do so, we need to contemplate the financial statements; marketing and communication items; travel expenses; fees for trade fairs; and other expenses.

Fifth section: calendar

In this last section, we must schedule the implementation; the monitoring activities; the operational revisions; and the control and measurement of the results obtained against what was planned. 

Additional information

Lastly, we must include addenda including data from the target audience; market statistics; facts to consider; and information about the competition environment.

Logistic considerations in exports 

For exports to be competitive in the long-term, we must take logistics into account. Just like in domestic trade, there are considerations to contemplate and establish beforehand in the exports plan to avoid interruptions in the supply chain:

• Packaging and dunnage: choose those which are better suited to protect and handle the products throughout the route; considering weather, resistance, costs, client’s specifications, freight fees, government regulations, and labeling standards.
• Means of transport: choose them according to the product you wish to export, the packaging and dunnage, the shipment’s urgency, and the availability of transportation.
• Costs: consider the costs of customs brokers, transportation, insurance, and incoterms (international trading conditions set by the International Chamber of Commerce).
• Customs: In Mexico, article 40 of the Customs Law enforces hiring a customs broker for exports operations. Before we can choose one, we must define the exit customs office and make sure the customs broker is authorized to operate in that customs office.
• Payment methods: a letter of credit is the safest one, followed by a payment order or international bank collection, and, lastly, check or wire transfer.

Specialized logistics companies, such as Solistica, can help you define this part of the exports plan thanks to the international logistics services they offer, among them multi-modal solutions and customs management.

The exports plan sets the market penetration strategy in alignment with the company’s goals and helps in finding out the feasibility of the operations from the viewpoints of administration, technical, logistics, finance, and staff. Always minding the international dimensions of the operation and manufacturing.

Coming up with an exports plan helps companies not only on their commercial planning but also allows them to carry out a self-assessment regarding the market and the competitors. Moreover, it produces a greater knowledge and commitment to its execution and, just as any other plans carried out in the company, it must have flexibility and undergo constant revisions so it can adapt better

*This blog was originally published on December 20 2018 and modified on April 21 2022.