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#Exportability: First thing’s first – ensure production capacity can be managed

Export is one of the most effective methods to expand a business yet at the same time, can be quite a complicated segment to master, especially for first-timers.

However, with the right guide and steps taken, exporting can be quite an easy process to execute.

In this series of articles, we take a look at certain elements potentially export-ready companies should take into consideration prior to stepping into the world of export.

Before you begin to draft an export plan, it is vital to ensure that the production line is able to cater production capacity to ensure export demands are met.

What does “export demands” mean?

It is important to realise that every product manufactured will have different applications in various countries.

One clear-cut example is the production of cars. Some countries implement the left-hand drive system while others, the right-hand drive system.

Hence, to satisfy these markets’ demands, it is important to ensure the capability of a production line in meeting the manufacturing capacity of these products.

This can ensure maximum expansion of your business export locations due to the diversification of products.

The higher the diversification of products, the larger the number of demands met.

What efforts can be taken if product capacity is not met?

Manufacturing one thousand left-hand drive cars for Country A and one thousand right-hand drive cars for Country B is not as easy as manufacturing two thousand left-hand drive cars for a single country.

From the statement above, it is pivotal to have a production line that is flexible.

This can shorten the time and cost of production drastically as a single production line can be used to manufacture various products.

Having a flexible manufacturing line is not enough. The export business is a long-term initiative (some companies even prioritising it to be a permanent venture), hence a sustainable production line also plays a major role in ensuring a companies’ competitiveness in the export segment.

There are a few methods to ensure continuous improvement on a production line such as the implementation of Lean Production System (LPS), Industry 4.0 related technologies and services and other methods or philosophies that can make a business export ready.

Here are some links:

Implementation of Philosophies to Guide Car Manufacturers Towards Accomplishing their Targets

2. Lean Production and IR 4.0 – How can they complement each other?

Stay tuned for the next article in this series where we will be concentrating on the importance of conducting market research.

For the second article of this series, click here.

For the third article of this series, click here.

For the fourth article of this series, click here.

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