In simple terms, export management is the application of managerial process to the functional area of exports. It is a form of management which is required to bring about coordination and integration of all those involved in an export business. It is thus, concerned with securing export orders and achieving their successful completion in time as per the requirements specified by the foreign buyers.
The main objectives of export management are i) to secure export orders and ii) to ensure timely shipment of goods as per prescribed norms of quality and other specifications including terms and conditions agreed to between the exporter and the importer.
Export Manager –A Key Player
Export manager plays a key role in the conduct of export business. The traditional management structures with functional classification ( Purchases, marketing, finance, accounts, administration etc.) cannot ensure effectiveness in export management through all stages in the export cycle. There is, there fore, a need for separate export department headed by an export manager. The basic function of an export manager is to bring about coordination and integration of all those involved in the export transaction from within the traditional management structures( functional organisation) and concerned external agencies to ensure timely shipment of goods as per buyer’s order.
The export manager is responsible for the successful execution of the order in terms of time, cost and technical performance. He must provide the leadership necessary to bind the people and groups from different departments working on the export order, into one team in a managerial organisation and provide the drive necessary to ensure its completion on time and within cost.
He should have knowledge of the techniques applied in export planning, financial management, inventory management, merchandising, risk management, foreign exchange operations, exchange control, negotiation with banks information systems, communication, personnel management and industrial relations, co-ordination and control. The effectiveness of export manager will, however, depend upon the extent of authority delegated to him by the top management.
In the end, it may be emphasized here that success of export management requires the wholehearted, sincere and constructive support of all the functional managers in the organisations. Good export management gets the export order completed within the time and the budget allocated for it.
Functions of Export Manager :
Once a decision is taken to establish export business, the first and the foremost task is to plan to secure an export order. After confirming the order to the buyer, the next step is to create an organization structure for it and create the required team of personnel for its execution. Export Manager is key person. The success or otherwise of the export order depends, to a great extent, on how efficiently (or otherwise) he handles the order.
He is required to maintain liaison with the importer, prepare plans for its implementation and issue necessary executive instructions to the export staff. He has also to evolve an information system so that there is a regular flow of information on the progress of the order. If the various tasks are not being done as per prescribed schedules, he has to analyze the variances and tasks suitable corrective measures, if necessary, for the purpose and finally submit report on the progress of work to the top management. The functions performed by the export manager are as follows :
a. Procurement of export order
b. Planning for export order execution
c. Direction for exports
d. Export order execution
e. Importer liaison
f. Export order evaluation
h. Reporting on export order execution