Monday, May 21, 2012

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Key Connections Needed for Global Commerce

It’s no surprise that companies participating in global commerce usually have a geographically dispersed network of customers, suppliers and service providers.  Just as with domestic business, logistics issues often occur within the global supply chain. Instead of having to scramble to react to such issues, international businesses should work proactively to establish connections with key people located around the world so that a phone call can quickly resolve such issues when they arise.

Port Lansing efficiently processes international freight, providing area businesses a local alternative to other congested ports. Freight from China, Vietnam and Taiwan and other countries moves through Port Lansing regularly, servicing Lansing-area companies that previously used ports in Detroit and Chicago.

To better serve our international business customers, Port Lansing continues to build our global network of logistics service providers and partner organizations.

A recent trip to China included stops in Beijing, Shanghai, Hangzhou and Suzhou.  We leveraged connections to arrange meetings with counterparts that oversee the Shanghai Free Trade Zone, multiple freight forwarders and customs brokerage companies, the American Chamber of Commerce (AmCham), U.S. Commercial Service representatives, fellow chamber of commerce directors and other private business and government contacts.

Every Chinese business and government person we met was very welcoming and interested to hear about Port Lansing, the Greater Lansing area, Michigan State University and the dominant industries in our area. While admittedly most hadn’t heard of Port Lansing, all were eager to explore opportunities to work together and appreciated that we made the effort to venture to China and seek out such partnerships. Several specific opportunities with Port Lansing clients and other Michigan companies were identified and connections have been made since returning.

Traveling to China for business seemed daunting at first. And it should, as the market potential over there morphs the United States, as the population in China in 2010 was 1.3 billion, compared to 307 million in the United States. To consider starting commerce in China, one can’t afford to be overwhelmed by the scale—but needs to be smart and attack it like any project—make plans to eat the elephant one bite at a time.

To prepare, we worked with a local company that specializes in translation and foreign cultures. They coordinated meetings with Chinese students from MSU who shared firsthand knowledge about their homeland with us. Some other basic pointers to keep in mind when conducting business overseas:

• Be sure to translate your business cards and marketing materials with a reputable translation company.

• Do some research to learn about the culture of the country you are visiting.  This may help avoid making mistakes that could be offensive to those with whom you are meeting.

• Research the company or organization you are visiting. Given the opportunity, it doesn’t hurt to mention a bit of the company’s history during the meeting to show you’ve done some homework.

• Arrange for an interpreter to attend the meeting—or be certain those that you are meeting with understand and speak English well.

• Utilize your contacts overseas to arrange the in-country meetings and ask that they attend those meetings with you. Just like us Americans, foreigners will be more receptive of doing business with you if introduced by someone they know well or have done business with before.

• Take good notes and be sure to follow up in a timely manner. It’s important to establish credibility with your foreign business partners, as your reputation is everything.

• Be prepared to make return trips. Most cultures outside the United States rely on establishing trust and personal relationships before business can be conducted. That usually won’t happen during the introductory meeting.

The value of the trip and return on the investment may not be immediately realized. But it may depend on you to follow up with your foreign customers or counterparts. Don’t wait for them to reach out to you unless specifically agreed upon previously.

The Lansing Regional Chamber of Commerce (LRCC) will be hosting a trip to China in September 2012, exposing travelers to the cultural differences and tremendous market potential there. Other international trade missions are also being planned in the coming months as part of the State Trade & Export Promotion (STEP) program, which is funded by the Michigan Economic Development Corporation and the U.S. Small Business Administration.

Port Lansing, LRCC and other partners are committed to increasing the amount of global commerce occurring in the Greater Lansing area, and beyond. Global trade creates jobs and results in capital investment right here in Michigan.

To learn how Port Lansing or LRCC can assist your company with your international efforts, visit www.portlansing.com or www.lansingchamber.org/internationl-trade.

Brent Case is vice president of international business services at the Lansing Regional Chamber of Commerce. In this role, Case works with the Capital Region Airport Authority to increase the amount of global commerce being conducted in the Greater Lansing area.

 

 

 

 

 

 


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