CHAPTER II.- COMPANY OVERVIEW
2.3 Service Description
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Our website will also provide a tracking service, so customers can see at any time the status of their order. As well, a payment tracking service will also be available on our website so buyers easily have access to an up-to-date balance of their account.
Guanxi Trading LLC seeks to reduce transaction costs through economies of scale and in making the most efficient use of our capital and of that of our customers. For this, we will work on seeking exclusivity based agreements with manufacturers in order to obtain a secure position in the foreign market.
2.3 Service Description
An export trading company is an entity that manages the trading process for a third party.
However, Guanxi Trading LLC will be more than an export trading company. We aim to be facilitators. We plan to be the most reliable, outsourcing solution to handle a company’s trading needs. We will offer a wide array of services to save time and effort for companies doing business abroad.
By purchasing locally, we take advantage of favorable pricing; and because we handle the flow of the products, we are able to have a better control of the trading process. Due to the fact that we take title of the goods, we also assume the risk and responsibility for the goods we export, which removes all risk from the suppliers and buyers and thus, facilitate their international business transactions.
Among the most frequent mistakes made by new exporters, we can include failure to get qualified export counseling, handling and covering all the legal and insurance requirements, selecting the right overseas agents or distributors, lack of knowledge of the foreign market, among others. These factors makes them unaware of any needed product modifications to meet the other culture’s preferences and regulations, as well as failure to print labels and warranty messages in locally understood language, thus failing to accurately cater to the foreign market.
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Although there are many public and private organizations in Honduras and Taiwan which are destined to aid small producers to export their products and helping producers to increase their exports, most of them only provide market information and guidance on the initial steps of the process, yet companies are left to handle the rest by themselves.
However, Guanxi Trading LLC will enable suppliers to avoid this due to us handling all the export procedures.
With this in mind, Guanxi Trading LLC will offer the following services:
- International sales force: We will aid buyers and suppliers to meet their import/export needs.
- Market information: We will provide the most up to date information on the foreign market and industry.
- Overseeing marking and packaging: We will aid suppliers to prepare the necessary labeling requirements for the products destined to the overseas market.
- Marketing mix: We will assist and support with the promotion strategies in the overseas market.
By doing business through us, buyers and suppliers will avoid the hassle that is involved in international trade. Because we take control of the goods, we will handle the following procedures of logistic coordination in order to get the product across to the foreign market:
- Legal requirements and documentation: We will assess all the requirements and regulations to deliver the products with ease.
- Quality Control and Shipping: We will determine the best shipping method for the products and follow the complete process until the merchandise reaches its destination.
- Distribution and Warehousing
International sales force
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Guanxi Trading LLC will bring together international buyers and sellers. We already have an extensive knowledge of suppliers in both countries and we will continually search for opportunities in each region based on any demand and supply gaps we perceive.
We will aid in finding overseas buyers for the products of the small and medium companies we work with, who in most cases, don’t have the capability to market and retain distribution channels abroad.
As well, we will handle the negotiation of the commercial terms and allocation of the order of the goods to reliable and adequate suppliers in order to find the best price/quality ratio for our buyers.
Claims and after-sale services will also be managed through us. Because credibility and reputation needs to be the basis of our business, we will ensure quality in our work and take all the necessary precautions to make sure things run smoothly. However, due to the nature of our business, unexpected events and situations out of our control may arise, but we will make sure all claims are dealt with quickly and efficiently.
As mentioned, we will do our utmost to build long-lasting relationships with our customers.
We guarantee to handle the necessary arrangements for after-sale services which include quality complaints, returns, etc.
In addition, we will work closely with manufacturing companies in order to transform a buyer’s prototype or design into a sample that meets the buyer’s specifications.
Market information
One of our main roles will be to spot business trends and opportunities in both markets.
We will regularly attend trade shows to be up-to-date with the latest trends in products. By doing so, we will also be in constant contact with suppliers and be seeking for new ones.
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We will also collect information on potential customers and assess their reliability. As well, we will regularly visit suppliers in order to cultivate a close relationship. Through this, we will also obtain the latest samples of their newest merchandises.
At Guanxi Trading LLC we will also focus our efforts on collecting information regarding the economy, culture and political aspects of the markets we do business in, as well as product prices, market demand and supply conditions, shipping data and other relevant information in order to minimize risks and provide market trend information to the suppliers we work with.
Information collection, diffusion and data analysis tools will be at the forefront of Guanxi Trading LLC’s development.
Overseeing marking and packaging
Because each country has different regulations concerning consumer products, we will assist the manufacturer to make the necessary product or packaging adaptations needed to meet the overseas market requirements or preferences. We will continuously inform manufacturers and producers about new technical developments and packaging method requirements in the foreign country.
Marketing mix
We will focus on the marketing and sales aspects of our suppliers’ products through our extensive network. Through this, we will ensure that the products are well known across the market and therefore increase the product’s salability.
We will also act as advisers to our suppliers in order to receive the best quality, pricing and after-sales service for their products, thus increasing our chances for success in the overseas
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market, and therefore creating a mutually beneficial relationship. By working closely with our suppliers, we will ensure a better working relationship; therefore, avoiding any conflict or potential rivalry between us.
When buyers purchase through us, they will avoid the hassle of having to deal with a supplier from overseas. Same goes for a supplier, since they avoid any non-payment risks and still get a sales increase because Guanxi Trading LLC will assume the risk of non-payment with foreign companies. Suppliers also avoid the difficulty of having to handle the shipping arrangements.
In international trading, one of the main and most complicated aspects of the cycle is the transportation of the goods from one place to another. Thus, by working with us, suppliers and buyers avoid the need of having to make these arrangements by themselves.
Guanxi Trading LLC will handle the following business operations:
Legal requirements and documentation
Because time is money, Guanxi Trading LLC helps customers save both by taking care of all the export documentation needed to get the goods from one country to the other. We take care of all the legal requirements needed for a company’s goods to be exported from one place to another.
Among our tasks, we prepare:
- Export license: legal document which allows products to be shipped.
- Commercial invoice: bill for the goods from the seller to the buyer.
- Bill of Lading: contract between the buyer of the goods and the carrier.
- Consular invoice: detailed statement of goods shipped certified by the consul at the point of shipment
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- Certificate of origin: a document containing an affidavit to prove the origin of imported good and which is used to support the tariff treatment claimed
- Shipper’s Export Declaration: a form required for all shipments, prepared by the shipper, in this case, us, indicating the value, weight, destination, and other basic information about an export shipment
- Export Packing List: specifies the material in each individual package and indicates the type of package, as well as the individual net and gross weights and measurements for each package
This way, the suppliers don't have to issue export documents; Guanxi Trading LLC will issue those.
Quality Control and Shipping
One of our main functions is to help small and medium companies reduce transaction costs.
Therefore, we will work as architects of transport and work closely with freight forwarders and shipping companies to deal with the movement of goods from one country to another in order to select the best method of transportation in relation of cost, time and quality of service.
By bundling the products of our suppliers, we will be able to achieve lower shipping costs and thus, keeping products with competitive pricing, which is beneficial to all parties involved. And because we will handle all the export documentation required, we will save our buyers and suppliers tremendous amount of time and effort.
Our trusted network of partners includes:
Odyssey International Co., LTD
Sercogua Honduras, S.A.
Transportes Consolidados, S.A.
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Maersk Line
Evergreen Marine Corp.
Local postal offices: This will be used for small shipments, generally for samples sent from one place to another.
DHL
UPS
Odyssey International Co, LTD is a cargo consolidator in Asia which has offices in Taipei and offer services from Asia to Central America. Sercogua Honduras S.A. is Odyssey International Co. LTD partner agent in Honduras. By handling all shipments through them, we can obtain better pricing and also form a strong working relationship.
As an alternate cargo consolidator we can use the services of Transportes Consolidados, S.A. and in emergencies, use the services of large shipping lines such as Maersk Line and Evergreen Marine Corp.
Because we initially start with a moderate flow of goods, seeking a cargo consolidator is the best option since better pricing can be obtained.
Depending on the size, weight, delivery time required and shelf life of the goods being transported, we will consult with our network of reliable freight forwarders in order to get the best pricing options and delivery time to meet our customer’s needs.
By handling the shipping arrangements ourselves, we are able to closely follow up on our customer’s orders, give them timely feedback and avoid any delays in delivery which might be produced if every supplier handles their own shipments.
Aside from handling shipping arrangements, we will provide quality inspections prior to shipping in order to ensure that the manufacturer’s products and packaging meet the quality and specifications previously agreed which match the buyer’s standards.
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When sales and thus, shipments increase, Maersk Line and Evergreen Marine Corp. will be considered as first options for overseas transportation since full container loads will be needed.
Distribution and Warehousing
Guanxi Trading LLC will focus on more than just doing one-time sales. We contemplate doing long-term business with our customers. As part of our strategy, we will carefully choose the appropriate product and market to trade, and we will carefully choose our suppliers to ensure good quality of work.
We will have a well-designed process of delivery service to our customers, which consists of transportations services and location of warehouses to control the delivery of goods. For this, we search for warehousing solutions for short-term storage of the goods being transported. This is part of our post-sales services after the products have arrived to their destination and have been cleared in customs.
All of our services and arrangements with our customers and suppliers will be pointed out in a memorandum of understanding (MOU) in order to avoid any discrepancies along the business process. This will be useful in clarifying matters and avoiding misunderstandings afterwards.
However, due to the nature of the business, unexpected events may occur, so constant communication with the other party will be greatly enforced.