UPS study reveals best exporting practices of successful SMEs

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Rio de JaneiroChoosing the right logistics partner, conducting research to identify resources, and developing competitive incentives are among the most important steps that small and medium-sized enterprises (SMEs) should undertake to enter new markets and gain export momentum, according to a new survey report by United Parcel Service (UPS).

The survey commissioned by the UPS Business Monitor Export Index Latin America (BMEI) gathered data from the leading small and medium-sized enterprises (SMEs) in Latin America to analyze their best practices for exporting.

Results indicated the importance for most of the survey respondents of selecting the right logistics solutions to meet the requirements of international buyers. Teaming up with a logistics partner with international capabilities and a proven track record on comprehensive supply chain management will enable SMEs to grow their business.

“Additionally, they can build more efficient supply chains, manage customs requirements and tax structures that apply to exports, which are considered by SMEs as barriers for their international growth,” said the report.

As a strategy to enter new export markets, most SMEs surveyed also conducted some form of research analysis to evaluate business opportunities. They created an in-house department dedicated to ​​managing exports within their organization. Additionally, to minimize cost and leverage existing market resources, most survey respondents partnered with private and public sector entities to attain industry data.

Another key research finding is that discounts and competitive pricing are a powerful tool to boost product sales. The majority of the survey respondents noted offering discounts based on volume purchased and advanced orders placed. “Discounts foster additional incentives for customer loyalty and future purchases,” noted the report.

Moreover, to conduct export business successfully, most SMEs attained credible product certifications to manage product quality standards and provide value-added services. Product certifications help to attest fulfillment of sales requirements for their products in local and foreign markets.

The study also found that SMEs in need of private financing often reach out to local exporting organizations to help them gain access to reputable financial resources.

Other effective moves by firms covered in the survey include going to an intermediary in the destination country to promote their services and gather sales contacts, establishing a presence on social media platforms for additional promotion, and attending key global conferences to increase brand and product exposure among targeted audiences.

The eight countries surveyed in the study were Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Panama, and Peru.

Photo: PAC 2