Manage Quality of your Export Product

The most fundamental quality control principle which is true for any Zimbabwean company is that when the management gets committed to controlling a manufacturing process, the quality of that process starts to improve as well.

When quality problems on products manufactured in and exported from Zimbabwe arise, they often affect profitability of the exporting venture, affect brand image on the export market and results in lost sales and costly product returns. All exporters should be conscious of problems which can result from the quality of their export product. The awareness of such problems triggers commitment towards improving the quality of the export product. What is the starting point in implementing quality management for your export product/s?

SMEs may adopt the most traditional kind of quality control, which is performed on exports which is carrying out final random inspection before shipment. After finishing production and when the export product is ready for shipment, inspectors randomly inspect batches of products to check conformance to the specifications and requirements. This process is also applicable to those exporters who are not really into production of the products they export; those who simply buy locally or internationally and then sell into their export markets. The final inspection may assist in boosting the confidence in own product quality, though the sample may miss at least one defective product unit. Remember that if one product gets to export market it may result in the loss of future sales! Nonetheless, final random inspection remains an efficient way to significantly improve confidence level in the quality, but they have to be designed and operated with professionalism.

Other quality management measures the SME exporter may adopt include performing inspections during production cycle (in-process inspections), meaning that the inspections are done at the end of each production stage of a given product. Performed by all shop floor employees at the factory site and during the production cycle, in-process inspections minimise the reaction costs in case of non conformities as they may usually cover a 100 percent check. In-process inspections are also carried out when loading the product i.e. verifying product quantities and the sealing of the containers so that, at destination, the receiver is almost guaranteed that his shipment would be delivered unspoiled.

It is often advisable to get the services of a professional partner who has the capability and experience to help set-up and operate a simple or very complex quality management system for your export market in a cost efficient way. If such efforts are to receive credibility in export markets, they should earn certification under ISO Quality Management Principles e.g. ISO 9001:2008. The rationale for encouraging SMEs to earn such certification is that some export markets insist on dealing with certified suppliers for the sake of quality of their own products. Those SMEs who are keen to get assistance on setting up the quality management systems in Zimbabwe may get into touch with the webmaster of this blogsite, who can assist at very reasonable cost.

Zimbabwean SMEs are therefore advised that they should take export quality issues seriously. Defective goods or incorrect consignments to international customers are expensive to deal with, and often in losing market shares.

Why should Zimbabwean Companies participate in Trade Fairs?

Is it really worthy the effort to participate in international trade shows/fairs? Many SMEs would be forced to believe that participation is just an unjustifiable trip which has no predictable return. For business companies, it is different from consumers who go to trade fairs to ask, “How much it this and that?” as business companies have to participate in trade fairs to establish relationships which corporate buyers and distributors of own products. Its more of looking for opportunities to partner with business counterparts who assist in selling own products. There are many good reasons why SMEs should participate in trade shows - both domestic and international rather than relying on reputation and e-marketing like websites and emails.

1. Build Relationships with Corporate Buyers at the Trade Fairs.
   
   The best way to make lasting business contacts is to talk to the customer face-to-face, as it gives one the chance to make the right impression. Zimbabwean SMEs should participate in international trade fairs in order to establish new trade contacts for their exports. For this to happen, they have to make good presentations (not of false promises), exchanging business cards and even visiting some foreign business premises and representative trade attachés of Zimbabwean embassies. This can go a long way toward promoting own product overseas. If the market is really good, the SME representative might even make a sale right at the show.
   
   
2. Find out Distributors for Export Market.
   
   International distributors come to trade shows to find the best the world has to offer in terms of price and quality relationships. The SMEs should also build relationships with these international distributors, in order to reach out to some international buyers who may not have made it to the trade fair.. Smes representative should strive to talk with these distributors to find out what they need. It is a great way to get your product to customers in many countries worldwide. The SMEs representatives should not waste time moving from one stand to another admiring other products which are not in any way related to their own – this is not a tourist venture, its business search.
   
   
3. Trade Fairs are One-stop shop for Export Market.
   
   When A Zimbabwean SME goes to an international trade fair, one meets potential clients from, not only the country hosting the trade fair, but all over the world. Not even the wealthiest companies could afford to meet with so many potential clients from so many regions in a few days. If your company is targeting a particular region, there are several trade shows designed for regional markets, such as SADC or COMESA or Europe. This means that not every trade fair suits own requirement, so choices should be made on which one/s to take part in.
   
   
4. Trade Shows Provide a Platform for Market Research.
   
   This is one kind of market research which the Zimbabwean SME would do in-house and interface with real customers. By having a chance to talk to potential clients, the SME finds out what international distributors are looking for - and what their customers want. One may still find out that some of the preconceived notions about export markets are wrong, by learning from the market participants the special requirements and opportunities by region. Or, luckily one may find a niche market for a very specialized product that one happens to be uniquely qualified to produce.
   
   
5. Test your Product at Trade Fairs.
   
   Zimbabwean SMEs should always take their trade samples to the trade fairs- its imperative! When such same products are presented, overseas buyers can give their opinion on the spot. Such immediate feedback will create a chance to get reactions to sizes, colours, design, price, flavors and ingredients. Remember products may need to be customised to suit the target market, due to different tastes. Trade shows give Zimbabwean exhibitors the chance to observe their competition for their products and whether their products appeal to buyers.
   

It is therefore imperative for any serious new or old Zimbabwean exporter to consider participating in some international trade fairs. The participation should however be punctuated by good negotiating skills and good presentations, considering different cultural background, language, political and geographical differences. For a successful participation the right team has to be assembled for each trade fair. For the calendar of trade fairs which Zimbabwe exporters can participate in, kindly get in touch with ZimTrade or search their website http://www.zimtrade.co.zw/ for such opportunities.

How some Zimbabwean firms have lost ground in export markets - failure to cope with technology

Zimbabwean manufacturers used to be competing fairly in the international markets. Distortions in the Zimbabwean economy have resulted in many companies fast losing their competitiveness in the past 3 years. The basic reason for losing such competitiveness is the failure to keep pace with changes in production process technology, for whatever reason. Those firms who failed to make optimal investments in technology lost their markets because they could not meet the product quality demands of export markets.

Symptoms of Failure to Cope with Technology

The following are the symptoms among Zimbabwean companies who have since fallen behind in technology: -

• Uncompetitive costs of production relative to what foreign competitors
• Deficiencies in product quality

Why did the Zimbabwean Companies fail to upgrade their technology?

Some firms had made initial capital investments in labour-intensive production processes to take advantage of the relatively low labour costs which prevailed in the country. However, the change in the state of technology rendered such methods ineffective to meet the required quality and precision in finished products. In some cases, investment in more automated production methods has become necessary. There are several factors which inhibited investments by Zimbabweans in improved technologies. Some of the reasons are as follows: -

• Some firms do not have search mechanisms for information on changing technological and market conditions and do not keep abreast of the technological trends in their industries. Such companies see no reasons for attending international trade fairs or technology exhibitions.
• The information gap had not been filled by any institutional arrangements initiated by ZimTrade, Government or industry associations for various reasons.
• Some firms had not made any investments in improved technology for lack of foreign exchange needed for importation on vital cogs of driving technology.
• Other firms could not make any investments in improved technology for lack of accumulated profits which could be ploughed back into the enterprises. Such firms had either accumulated losses or had failed to generate profits for a long time.
• Some firms had suffered from the effects of rigid price controls which prevailed in the country.

Zimbabwean firms had been in financial problems for a long time which eroded their capacity to make any significant investments in capital equipment, training and innovations. Investment in general had been low or stagnant.

What Should Be Done by Zimbabwean Companies

The following are methods which are relatively easy to implement but do have amazing results: -

• Some firms must put considerable efforts into improving their competitiveness by way of making serious investments in technology. Why ‘effort’? For some companies it is a matter of efforts - some companies’ management think they can do with highly skilled labour only to beat competition but I feel it is short lived. In some cases, investments in more radical changes in technology are needed to include changing to the use of microelectronic controls. Management have to prioritise the modernisation production process technology in order to keep afloat in the export market
• Top management has to develop appreciation of the pace and trends of technology development elsewhere, as a guide to the kinds of investment that must be made to create and develop new technological capabilities.
• Attend international exhibitions to keep abreast with changes in technology.
• Enter into partnerships with foreign companies or attract foreign shareholders who bring in new technology.