MF Logistics - Growing Your Business in Europe

How many times have you wished for direct access to market specific information directly related to your business? With the right information you could make decisions quickly that were sound and potentially profitable for your business.

US based manufacturers looking at Europe often make the mistake of considering that the European market place, a “Common Market”, is similar to North American. How far from the truth this is. Europe is still fragmented by language, national boundaries, regional and religious variations which makes doing business in Europe a whole new “ball game”.

What about “English” as a common language you say. Consider that the USA and the UK both speak “English” as a national language but there are many differences, which leads to the saying “two countries divided by a common language”. There are many areas of misunderstanding between two such similar countries and you can expect many more when you include the other European countries that speak “English” as a second language.

How then should the problem be approached to allow North American based businesses to maximise their understanding of how their products will be seen in the different European markets and how they can best be marketed and distributed? The answer is to utilise consultants.

Yes, Yes, I can hear the comments now. However consider the NEED and the TIMEFRAME in fulfilling the need via a consultancy against travelling to Europe and doing the job yourself. No contest really. I do however agree with your probable thought about some of the consultancies. The solution is in your hands to control the consultant and make sure you get the results in an acceptable timeframe at an acceptable cost.

Lets look at the process of finding a consultant to assist you with your European development. The first stage is to define your business requirements as you see them. This should be circulated internally within your own organisation to get the views of your senior and middle management who can assist the refining process through their hands on experience with home and other export markets. Don’t forget to add your timeframe and final objectives.

You now have a detailed brief to circulate to your choice of consultants. Examine the known consultants for a match between their expertise and the brief you have prepared. Size isn’t everything so don’t just look at the large companies. You are looking at a specific market area so it is highly probable that the smaller companies can provide the area specific expertise that you need.

Pick five consultancy companies, two large and three small all within the target area and send them your detailed brief and request that they respond giving a reasonably detailed outline of how they will approach the project and pricing in some detail. Don’t forget to ask each consultancy to offer suggested refinements to the brief. You may have written a good brief but the consultant can enhance it or identify potential “show stoppers”.

The next stage is to analyse the proposals and then visit Europe to meet the consultants. It is important, at this stage, to make sure you are talking with the people who will actually undertake the work. In some instances you will meet the “sales people” and not the “engineers”. The key to utilising a consultant is to get to know them and draw them into your business as a functioning element of the decision making process. You therefore need to understand and have respect for the person you will be dealing with which you cannot do if you only meet the “sales” person.

A good consultant will at this stage identify potential areas of concern within your briefing and outline alternative approaches. Focus these discussions upon the project in hand and don’t be side tracked. Make sure you will be happy to work with the individual who will manage your project. Consultancy is a partnership that is especially critical when you are 3000 miles away from the target market. You need to have faith in both the individual and the consultancy.

The appointment of the consultant is by no means the end of your responsibility. Your company must look at this as both a data collection exercise and an internal training exercise. You must nominate a key individual within your organisation to be the interface and project driver. It should not just be an “add on” to that persons existing job but should be their primary function and a link between two companies. This individual will become your internal expert of Europe.

Your responsibility does not end here. You have to supply a lot of information about your company to the consultant if you want a realistic solution that will fit your business. Most consultants and auditors state that one of the biggest problems is getting the customer to provide timely information. With the distance between the two companies and the time differential this can be a problem. Consider however that by delaying production of information to the consultant you are only increasing his costs, which you ultimately pay.

As a final though I would suggest that you plan to involve the consultant in the implementation of the solution. Make sure the consultant knows that whatever solution he comes up with he will also be responsible for at least part of the implementation.

About the Author
Mike Forryan has some 30 years experience in business processes and has worked for UK, European and US multinationals in various rolls including business development and troubleshooter.

He now runs his own Supply Chain Resources business which includes interim management, consultancy, recruitment and business health checks.