Your business has a robust domestic track record, and you’re ready to take things to the next level. It’s time to start selling your product around the world. Tapping into international markets, however, isn’t the simplest of tasks.
How does your company pursue this new venture? At Pivot International, we’ve been providing access to our global manufacturing resources, industry experience, and expertise for more than 46 years. We’re well aware of the obstacles that come with making products available worldwide, and how to best assist our partners in successfully tackling them.
With this in mind, these are four of the most common hurdles to global distribution, and how your company can overcome them.
1. Supply chain management
Supply chain management (SCM) involves the optimization and monitoring of the flow of goods, information, and finances between design, production, transportation, and distribution touchpoints. When done effectively, supply chain management can minimize costs, reduce waste, and produce a multitude of other competitive advantages.
Every supply chain is inherently variable. When aspects of your business are no longer limited to the U.S., unpredictability can escalate. Natural disasters, geopolitical turbulence, and even minor transportation difficulties can affect global distribution.
The solution? Consider seeking out an experienced, international sourcing partner to help you develop a risk-reduction plan to fortify yourself against the following challenges. Preparation is key.
2. Currency fluctuations
When you conduct business overseas, you should be prepared for costs to oscillate. Exchange rates continually fluctuate due to supply and demand. We recommend making sure currency fluctuations are integrated into your company’s enterprise risk-management plan before embarking on global distribution.
3. Preservation of intellectual property
Intellectual-property rights are less straightforward in other countries. IP infringement can occur through a wide array of actions and, more often than not, result in severe damage to your business. This is especially true for the information technology sector. For instance, the Business Software Alliance found that 57% of personal computer users (surveyed from 33 countries) have pirated software.
At Pivot, we think it’s essential for our partners to take steps to protect their intellectual property before considering international markets. One way to go about this is to apply to individual countries’ intellectual property offices. For more information, check out the World Intellectual Property Organization (WIPO).
4. Compliance with international regulations and standards
Quality standards and rules regarding imports, exports, safety, packaging, labeling, and more differ around the world.
At Pivot, we have years of experience making compliance easier. By using certified ISO: 9001 and ISO: 13485 systems, not to mention our background working with TUV, UL, ETL, CE, FCC, and others, we are uniquely qualified to assure low certification costs and properly executed lead-times.
Globalization is less of a trend and more of a necessity these days. There is no denying that the most successful products in today’s economy are global ones.
A global manufacturing and distribution firm can help you effectively tap into international markets. At Pivot, we bring a proven track record in global manufacturing, supply chain management, and market research services. Let’s connect to discuss how we can help you set up and manage your company’s global supply chain. To receive a personalized plan, contact us today. We look forward to hearing from you.