Trade partner Communication
"A telephone line is a life line".
Chicago Transit Authority, 1970
Out of sight, but never out of heart
During the presentation on Total Quality Management you have become acquainted with the four stages of Deming´s Circle: Plan, do, check and act (i.e. improve). Once your “export show” is on the road all planning efforts you and your trade partner have made will turn into life and … become measurable. Because of this measurability it is possible to give a continuous follow-up to Deming´s first two planning stages of planning and actually doing it. By means of the received feedback, you are now able to check the quality of both the planning and the business and react in order to improve the going of things. In this respect you will immediately understand the crucial importance of front line feedback, which should be seen as the triggering impulse to do things better, faster and in a more efficient way. In that respect, trade partner communication indeed is a life line, helping you, your company and your trade partner to proceed, as fast as possible, on the learning curve of international marketing. |
Official Trade Partner Communication
Bearing the above statement in mind, you will understand the reason why a substantial part of trade partner communication is official business. For that reason much of it has been covered in a distributor´s contract. Contractual topics such as requirements of the importer, quality control systems, monitoring team, meetings & minutes, documentation of progress, survey & acceptance procedures and support services all have to do with communication. These official communication activities belong to the domain of Official Trade Partner Communication . All other communication belongs to the so-called Social Trade Partner Communication , which most probably has an even higher importance than the obligatory exchanges of information. We will elaborate upon it later in this presentation. Combining them both in order to mold a pleasant and fruitful co-operative spirit is of course one of the most “audiovisible” talents of a business man.
Budget versus Actuals The basic subject of official communication. This form of regular (monthly or quarterly) reporting on in-market stock and market sales is necessary in order to continuously review the export sales forecast. Logically, it also acts as a confirmation of shipments that have been received and cleared. On its turn, the export sales forecast serves as a trigger for your company resource plan, defining critical resource and stock situations with respect to (a/o.) manpower, working capital, raw material, semi-finished products, packaging material and transport availability. The highest possible actuality of trade partner feedback in this respect will enable you to execute export orders with the highest efficiency and the shortest lead-time. Of course this mandatory way of trade partner communication should lead to a reporting format via Email ( EMMR: E mailed M onthly M arket R eport), which can serve as a carrier for all other official information, like…
Documentation of Progress In this part of the EMMR, the importer informs you about his marketing-related activities with regard to your product(s). As a matter of fact it reports on market developments (social, economical and institutional), activities of the competition, his own sales and promotional activities, planned activities for the month to come and last but not least customer/consumer feedback (compliments, complaints, suggestions and requests).
Survey & Acceptance Procedures This part of the EMMR covers the quantitative and qualitative inspection by the importer of all incoming shipments and includes elements like labelling and coding, product conformance, instructions for use etc. Also very important is a report on the condition of the export packaging. It will be clear to you that all this feedback will help you realise Continuous Performance Improvement.
Support Services Reporting on all other business related services that are rendered by the importer.
The month(s) to come Brief information on the planned activities for the month(s) to come, including planned business trips to meet each other.
Exporters feedback
Just receiving the EMMR and disseminate the information it contains throughout your organization, does not bring comfort (if needed) and added value to your importer. Most probably, he expects you to grab the phone and discuss immediately all topics with him. If you do not so, his reporting discipline will weaken since he might be tended to think “they do not do anything with it”.
By the way, a manufacturer who is afraid of the amount on his long-distance telephone and Internet bill (for example via Global Access) should not export at all!
Imagine what an opportunity this represents for you to let him hear your motivating voice, assuring him that his business is top of mind for you, thanking him for the advises given and telling him that you have taken action immediately. As a matter of fact, what we are suggesting here is a telephone conference, followed by an Emailed confirmation on all agreed steps taken. This so-called Market Report Debriefing forms an integrated part of the official trade partner documentation. When the importer also includes a monthly order & shipment status report, we have realized a real Trade Partner Communication Loop :
The Social Trade Partner Communication
As mentioned before, this aspect has most probably an even higher importance than the mandatory exchange of business information. It is all about managing a personal long distance relationship. Of course, as always it should be business first but when that has been covered, it is the human touch that strengthens the relationship. It culminates during visits to each other´s places, where ones physical presence enables normal person-to-person communication. Telephone, Email and all kind of written “tokens of appreciation” should maintain this acquaintanceship. It already starts with a written prove of appreciation and gratitude for the shown hospitality after you have returned from your market visits. Be assured that such a letter, Email or card will pass the desks of all your counterparts in the importers office. It requires organizational intelligence from your part in order to pick-up signals that offer the opportunity to add a human touch to it all by means of your personal note or call:
- Birthday dates and other family celebrations,
- company anniversary,
- April fool
- (National) holidays
- longer term sickness & accidents,
- personal business successes (like getting a new major customer for your products),
- job promotions and organizational changes (“wishing success”),
- other apparently trivial things like a new company car or moving to a new house.
Be aware of the fact that many of these occasions will be mentioned by your counterparts passively, while scheduling business activities or trying to reach somebody in their office.
Of the record discussions
Mutual trust and respect are the cornerstones of a solid business relationship. When people trust each other, one tends to become each other´s personal counselor on various occasions.
NB. This does not mean that you as exporter should get involved in the importer´s company politics, because in the longer term that will certainly harm the relationship.
But, when asked, helping your importer with your opinion on certain delicate business matters, such as extending a bank credit, company reorganization, decision to build another warehouse, trade union conflicts etc., will only result in a better relationship. This “bosses amongst bosses” confidentiality will make you a part of the importers network and vice versa. The provision of such second opinions, based on your personal experience with a certain subject and your understanding of its emotional and environmental impact, is one of the most appreciated gestures in a business relationship. It also creates an informal but hierarchical structure with a clear division between strategic and operational responsibilities, which is needed during problem solving.
Whenever operational friction occurs between your export desk and the import desk of your trade partner (and in exports, you can be assured that this will happen with regularity), that might lead to the harmful personalization of a problem or mistake, resulting in an operational deadlock. Before such an event risks to deteriorate the working relationship between the two partners, you as director can make use of your confidential relationship with your tradepartner in order to set things straight without loss of face.
KDB 09/98 |
