How to set up your export department?

HOW TO SET UP YOUR EXPORT DEPARTMENT?

Accelerate your business with these expert tips on "How to set up your export department". Analyse and discover this TIP!

A basic export department has to consist of at least one export manager and one assistant. The former will carry out commercial work in the chosen target markets; the latter, liaison and coordination functions with the rest of the company's departments involved in internationalisation.

All departments, especially finance, logistics and production, the whole company must breathe internationalisation and that the export department must be integrated in the company structure, isolating it is a very common mistake that you have to avoid. (see+ TIP).

For companies with a turnover of more than one million euros, one should consider incorporating, apart from an export director, an area manager, foreign trade professionals who are responsible not so much for specific markets but for geographical areas. Without forgetting that the export manager will always report to the manager and the commercial director and that the department has to be connected to all areas of the company.

A connection whose singularities are outlined below.

  • Customer service

It is essential that the person in charge of taking calls is at least fluent in English. It is even better if there are several languages.

  • Administration and Finance Department

Foreign trade has its own means of payment, so the finance department must be familiar with all of them: documentary credits, confirming, export insurance...

  • Logistics and transport

This department must efficiently manage the shipment of orders, choosing the most appropriate or economical means of transport according to the characteristics of the product.

  • Production

This area will have to adapt its standard to the certificates and regulations of the destination country, translate the labels into the language of that market, among others.

  • The profile of external staff

The key piece of any export department is the person who takes the lead in that area. The export manager must have a very clear-cut profile, which corresponds to graduates with specific training in foreign trade acquired in a Master's degree and commercial skills.

He/she will be responsible for drawing up a sales plan, in which sales targets will be set annually in accordance with the company's global strategy; research and analysis of target markets. 

Where to hire them? Chambers of commerce, business schools, universities...

  • Salary varies according to experience, education and languages.

FOR EXAMPLE:

For a junior export professional, the salary is in the range of 15,000-22,000 euros, which, in the case of a senior professional, rises to a minimum of 40,000 euros or more, "if they also have a portfolio of clients abroad or have a technical sales profile.

In addition to the option of hiring your own export manager, there is the option of outsourcing this part to a specialised company, 

  • Export Manager

Among his responsibilities are the management and supervision of the company's activity and sales abroad, structuring the export manager area, organising the commercial networks in the countries of operation, define a marketing strategy (market and competitor studies), find new contacts, participate in negotiations and choose local distributors. 

The training of export managers is of higher education level (university and master's degree), preferably with a minimum experience of more than six years, fluent in English and other languages, depending on the destination countries chosen.

  • Duties of an export area manager

He/she manages the company's commercial activity in a specific geographical area, an area of which he/she will have specialised knowledge. This includes turnover, margins, profitability, investment and development. His tasks include negotiating with local distribution networks and following up on agreements.

They report directly to the Export Manager and have a university degree or higher, a minimum of two foreign languages and experience in export sales. Their salaries vary according to their years of experience and whether they work for an SME or a multinational.

  • Duties of an export salesperson

Also, reporting to the Export Manager, His responsibilities include market analysis and prospecting, commercial visits, negotiation of agreements, search for distributors. They usually have a university degree or higher, at least a good command of English, and preferably at least a couple of years' experience.

It is also this experience that determines their remuneration. In addition to the fixed remuneration, you will have to add a sales commission.

  • Bringing your team together for internationalisation

In order to be successful in your internationalisation strategy it is very important to that there is a shared and aligned vision with your entire team. Al plan your strategy you must make sure that everyone has the opportunity to dDiscuss the reasons for going abroad and set tangible and realistic business objectives.

This is the moment to check the commitment of the whole team, what are the skills of each one and how they can contribute to the process of creating business relations abroad, who will carry out concrete actions such as the definition and creation of an international department to guarantee a good customer service.

Working together, your company will be able to create a well-defined action plan, with good planning of goals, timelines and identification of resources needed during the process. It is a lot more likely to succeed if everyone in the company works towards a common goal.

It is also important that the strategy is communicated to the rest of the company. This process is likely to have an impact on the way they work so they need to be aware of what is happening and be prepared for change. You must also assess the need for an internationalisation training programme to ensure that their staff are properly prepared when orders from abroad start coming in.

How can you use the artificial intelligence (see+ TIP) to set up your export department?

As a model language, it can provide suggestions and ideas on how to set up an export department, but it is important to keep in mind that each company is unique and may require a different approach depending on its size, sector and internationalisation objectives.

HOWEVER, HERE ARE SOME WAYS YOU CAN USE ARTIFICIAL INTELLIGENCE TO HELP BUILD THE EXPORT DEPARTMENT:

  1. Ask open-ended questions: Asking open-ended questions to artificial intelligence about how to create an export department can provide innovative ideas and approaches. For example, you can ask: "What are the best practices for creating an effective export department?" or "What skills and knowledge are essential for export department team members?".
  2. Ask for specific suggestions: You can ask artificial intelligence for specific suggestions in key areas such as recruitment, training, international marketing strategy, logistics and risk management. For example, you could ask: "What are the most effective methods for finding new export markets?" or "How can I train staff in international negotiation skills?
  3. Use examples of success stories: Artificial intelligence can provide examples of companies that have been successful in setting up their export departments and the strategies they used. You can ask: "Which companies have created successful export departments in the past and how did they achieve this?" or "Which international marketing strategies have been effective for other companies in my sector?
  4. Get practical advice: Artificial intelligence can provide practical and useful advice on how to start setting up the export department, including information on how to identify suitable export markets, how to set realistic targets and how to measure success. You may ask: "What are the first steps in setting up an export department?" or "How can I measure the success of the export department once it is up and running?".

Remember that, although artificial intelligence can provide useful information, it is always important to consult experts in the field and conduct thorough research in order to create a successful export department that is right for your company.

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CASE STUDY

Juan is an entrepreneur who recently joined a startup accelerator programme. He has a food products company and wants to start exporting to other countries, but he has no experience in international trade and does not know how to set up an export department in his company.

John decides to use artificial intelligence to get advice and guidance on how to create an action plan for his export department. He starts asking questions about the steps needed to create an effective export department and how he can make sure his company is ready to export.

Artificial intelligence provides you with detailed information on the legal and regulatory requirements your company must meet to export, as well as the steps to create an effective export department, including hiring trained personnel, identifying potential markets and implementing a marketing and sales plan.

In addition, artificial intelligence suggests that Juan should seek help from international trade experts and partner with local agents and distributors in the destination countries to ensure a smooth export process.

After several conversations with artificial intelligence, Juan has a better understanding of how to set up his export department and what steps to take to ensure his company is export-ready. He now has a detailed action plan that includes hiring trained staff, identifying potential markets and implementing a marketing and sales plan, and will seek the assistance of international trade experts and local distributors to ensure his success in the international market.

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Jaime Cavero

Presidente de la Aceleradora mentorDay. Inversor en startups e impulsor de nuevas empresas a través de Dyrecto, DreaperB1 y mentorDay.
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  1. MOST COMMON MISTAKES IN INTERNATIONALISATION - Mentor Day WikiTips

    [...] I'm sure your team is excellent, but a new strategic activity is going to need, above all, time. And internationalisation requires specific knowledge and skills that you will need to incorporate into your team. The Tip on how to set up your internationalisation department will help you [...]

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