Foreign Military Sales (FMS) are growing quickly as the U.S.-industry preferred method for selling defense systems abroad. For companies that have a solid position as US DOD providers but are new to exporting, FMS offers huge benefits in terms of logistic support. In contrast to Direct Commercial Sales, in which the U.S. defense company sells directly to a foreign customer, in FMS the U.S. DOD serves as a go-between in an international transaction. The final customer is a foreign military, but the U.S. defense company deals primarily with the U.S. DOD. The DOD handles all the logistics associated with the international sale, including permits, transportation, and payments. Working through FMS has numerous benefits, including reaching a broader customer base, reducing the risk inherent in international sales, facilitating planning, and reducing the administrative burden of doing business internationally.
FMS are the industry preferred method for selling defense systems FMS offers huge benefits in terms of logistic support The DOD handles all the logistics associated with the international sale, including permits, transportation, and payments.