International trade management is the process of supervising and managing all aspects of a company's international business. A business may employ specialized personnel to deal with these procedures or engage external consultants. Issues to be handled involve keeping up to date with national and international laws and trade regulations and adapting trade strategies to deal with new situations. The supply chain for international trade requires maintenance and adaptation to ensure that the most efficient and lowest cost strategies are used.
Managing the supply chain requires complying with the latest export and customs regulations, obtaining the relevant licenses and export documentation and settling customs duties. Similarly, the corresponding import regulations and product classifications must be continually monitored for the relevant countries and entry procedures managed. Movement of goods across international borders would be tracked and problems managed as they arise. Inventories may be managed and maintained by collaboration with relevant suppliers. Information on direct tax requirements and procedures would be updated regularly and the supply chain managed with tax efficiency in mind.
Management of customer relationships is another method of international trade management. Research into overseas market conditions may provide information to enable modification and improvement of marketing strategies. Distribution networks may be improved and compliance with local regulations ensured. Customer relationships may be improved by gaining knowledge of local customer needs and implementing improved customer collaboration.
In addition to managing the existing supply chain and customer relationships, international trade management may aim to open up fresh opportunities in new markets and build relationships and opportunities for collaboration with potential partners overseas. International trade management aims to build up cross-border relationships for research and development or joint ventures with the aim of developing new technology and boosting innovation. By increasing the level of cross-border networking and information exchange, an enterprise may ensure that it is abreast of the latest technological developments and may arrange for sharing of knowledge within the organization to ensure efficient exploitation of new possibilities.
International trade management also encompasses the financing and insurance of international trading, and freight arrangements. The management of international trade contracts aims to ensure that the terms of each contract are unambiguous and that correct provision is made for dispute resolution procedures in the event of any disagreement. Relationships with the buyers in other countries require correct management to ensure that misunderstandings are kept to a minimum, product requirements are clearly understood and rejection and return of goods are kept to a minimum. Well managed customer relationships also may lead to quicker collection of debts due.