No Business is risk Free, right? Same with export import business as well. Import risk management can be tackled through a proper process. A process filled with ultimate guidance! With Guidance there are many things that one needs to go through manually. Import risk management is something super interesting if one actually needs to overcome in life.
“If you have a positive attitude and constantly strive to give your best effort, eventually you will overcome your immediate problems and find you are ready for greater challenges.”
Import – A Significant Role
Not only export, import too has a wide market & potential. You just need the right strategies to kick start our import business. Also, here the knowledge of the International Market must be there. Otherwise, there will be no long term success. Let’s start believing, thousands of imports do happen on a daily basis in India. Some Domestic, some or many International imports we can say. We must also accept, sometimes we just need to import, no other option at that particular time. A new product requires enough time to enter in the market. It requires a 100% whole different process to manufacture it or to produce it. I am not underestimating India’s manufacturing world. Rather, I am proud to say that we are advancing in manufacturing as well but we just need more time. Till then we are importing some products.
How Import Is Different Than Export?
Let’s start from the very basics, services or commodities brought in a country are called imports. Surplus products which we sell outside the country internationally is called exports. Economically, we import for serving the needs or closing the gaps. Exporting the products internationally is far more beneficial than imports. But imports too are significant. Now, high levels of import is an indicator of strong domestic demand. While in export, it is an indicator of trade surplus. There are many export import risk factors that we will be studying ahead in this blog.
Types of Risks Involved In Import
Delivery Risk In Import
Risk of Quality
Exchange Risks
Risk of Transport
Solutions – Import Risk Management:
Delay In Delivery
The Contract should be very properly made with clear specific information available. Nobody wants delay in getting their order. In Diwali, we need firecrackers before a few days of it. Because, after Diwali there is no use of imported Diwali products. Also, if the contract is specific & clear, if there is any delay in delivery, you can just avoid the payment.
Quality Risk
Hiring any third party agency or investing about the supplier in advance is super important. Let’s start with basics, checking the websites, social media (if any), clients or other stuff. Many times the quality remains different than the display. From mentioned points, this is how one can avoid the quality risk.
Risk of Exchange
To not mess up in an International export import deal, it’s vital to determine product value in domestic currency. This will maintain reliability between exporter & importer. Entering into an International exchange contract through a trusted bank too is important.
Transportation Risk
When the goods supplied by the exporter is insured, transport risk reduces. No matter whether the transport is done through sea or air only because of insurance. Type of cover should be obtained in the contract of sale between the parties. Also, we can say you should obtain Insurance cover. Called as ‘Open Policy’ for the bulk billing & other relationships.
Be Ready In Advance
In Export Import trade, you must be ready before a big trouble. To Avoid Further conflicts, step by step training should be acquired. Want to know how? Read the below ‘Conclusion’ section.
Conclusion:
As studied earlier, Import Risk management can be implemented only through proper guidance. In Export Import industry, if there are tons of problems, then 2x solutions too exist. It’s just the matter of learning through mistakes or either learning in advance. Digital Exim is the best destination for all the exporters or importers. Frankly speaking, no one can give such an extraordinary consultancy as Digital Exim. Digital Exim, undoubtedly, India’s most growing export import consultancy group. Say no to export import risk! Call on 9505506333 to get a free consultancy demo.
