Production and Procurement of Goods for Export

Production and Procurement of Goods for International Business

 

Production and Procurement of Goods for ExportOnce export contract is confirmed, exporter has to arrange manufacture of goods meant for export, if they are not readily available. In case, there are production constraints, priority is to be given for exports as timely delivery is the most important criterion in case of exports and, if necessary, certain rescheduling of production for meeting indigenous requirements may have to be made. If the goods are not to be manufactured but are to be procured from the local market, necessary action has to be initiated to meet the delivery schedule.

If exporter is a manufacturer, a detailed plan of action is to be drawn as manufacturing process is not as simple as procuring finished goods. The details of inputs required for production should be presented in the form of a document called Bill of Materials. The manufacturer/exporter has to prepare backward pass calculations to ascertain the time Schedule of requirement of materials. For calculating this, it is desirable to leave a margin of ten to fifteen days to the date of shipment of goods to face unforeseen contingencies. It is also prudent to plan for labelling, packing and packaging, simultaneously. A careful cost and time schedule and their periodical review are essential meet the deadline date delivery schedule and achieve the anticipated level of profits.

 

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