How to coordinate an international trade operation
A commercial agreement sets out what the parties want to do. Putting it into practice requires coordinating products, documents, payments and deliveries.
A buyer approves a sample and places an initial order. The general terms have been discussed. Now the agreement needs to become concrete tasks: preparing the goods, confirming the documentation, arranging transport and organizing payments.
Coordinating an international trade operation starts with establishing what needs to happen, who is responsible and what information each participant needs to move forward.
Turn the agreement into a work plan
The product, specifications, presentation, quantity and delivery terms need to be clearly defined so that everyone works from the same information.
Imagine that the buyer requests a different presentation from the approved sample. Before preparing the order, it is worth confirming whether this change affects packaging, documentation, cost or the availability date.
A shared plan makes it possible to record each task, the person responsible and the expected deadline. It also helps identify dependencies: a freight quotation, for example, may require dimensions and weights that the supplier still needs to confirm.
Every outstanding task needs someone responsible and a deadline for resolving it.
Keep documents and goods consistent
The documentation required depends on the product, origin, destination and specific details of the operation. It should be checked with the relevant participants and specialists before dispatch.
If Incoterms® are used, the agreed rule and named place help allocate tasks, costs and risks between buyer and seller. Payment terms are agreed separately.
Commercial information, cargo preparation and transport instructions need to be consistent. When a relevant detail changes, everyone working with it needs to receive the updated version.
Put payments and logistics on the same timeline
The timeline needs to cover preparation and transport as well as expected outgoing and incoming payments.
An advance payment to the supplier followed by a later payment from the customer may create a need for working capital. Mapping out these dates helps assess financing options before making commitments.
Payment terms also affect the risk of the operation. They should therefore be reviewed alongside commercial deadlines.
At the same time, availability, packaging, transport and receipt of the goods need to be confirmed. An estimated date must be distinguished from a confirmed date.
Follow through to completion
Shipment is a milestone. Follow-up continues through receipt of the goods, any discrepancies that may arise and collection of payment as agreed.
Recording deviations and reviewing their causes provides useful information for the next operation: where a delay occurred, which information arrived late or which task needs to be adjusted.
At Achia Group, commercial analysis, management and the search for financing solutions are among the capabilities we bring to supporting this process.
Do you have an operation underway? Tell us about the product, the market and your current stage.
Achia Group Team
General references: International Trade Administration. Documentation and requirements must be checked for each product, origin and destination.
