Intermediary services are very instrumental to supply chain management and manufacturing services. Without intermediaries, there would be no flow in transporting products from manufacturers up to the end users. It would be much more efficient if a third party intervenes via supply chain consulting and talks to all the suppliers instead of customers communicating to them one by one. We can also be described as “the middleman” but our services really go beyond than transacting between suppliers and customers.
Different Types of Intermediary Services
Intermediaries as agents/brokers
They usually represent the manufacturers in playing this role and they are the ones responsible for finding stores/merchants who are willing to purchase the product. They add a small percentage to the product’s price which serves as their commission or broker’s fee.
Intermediaries as wholesalers
In this role, they purchase the products in bulk and they resell it to customers at a price a bit more expensive compared to how much they purchased them from the manufacturer. Unlike agents and brokers, they work around a bigger budget due to the quantity they buy from suppliers.
Intermediaries as distributors
Distributors are like wholesalers except they own the product (or act like its franchise holder). They are sole distributors for products or manufacturers they are tied up to. For new products, they usually set a launching date as part of their marketing strategy to make the product more desirable to consumers.
Intermediaries as retailers
Unlike agents/brokers who look for stores/merchants who are willing to sell the product, retailers sell the product themselves directly to the consumers. Profit is more direct this way, but the work involved could be heavier since they will also be in charge with marketing and other additional tasks agents/brokers no longer do.
Biggest Advantage of Intermediary Services
In our sourcing and intermediary company, we perform different types of intermediary services; our qualified intermediary services may also include (but are not limited to) doing customs paper work, checking legalities of products, and reviewing product certifications. The biggest catch why our clients choose to go with our intermediary services is because they are able to save money through our help.
We have better negotiating power in dealing with suppliers since we are more connected to them compared to the relationship between customer and manufacturers. We can easily coordinate with suppliers/manufacturers and provide immediate payment methods which most clients do not have. To sum it all up, we make transactions flow smoothly and everything becomes more convenient for each party involved.
Our intermediary services reduce your capital risk exposure. We act as the qualified intermediary between you and the supplier. Use our knowledge of Asian business culture and financial institutions to get the leverage needed to have a secure transaction. We as your intermediary service provider handle all paperwork and safeguard bank transfers.
We guarantee your sources will be hidden and factories kept confidential. As your intermediary service provider, we handle all of the paperwork to conceal your factory from your competitors. Using intermediary services can also have several tax and transportation cost advantages by reducing the number of steps in the supply chain. You can also click here to better know the scope of intermediary services.
- Save Taxes: You can avoid double taxation with our qualified intermediary services. How? We can sell directly to you in your home country and get it through customs. This way, you can reduce customs and sales taxes as well as handling fees.
- Hide Your Sources: We handle all customs paperwork. Our intermediary services both save work and hide your suppliers. This is lowers the possibility people will go around you in the future. You can feel safe knowing your suppliers are confidential.
- Ease-Up Transactions: Our payment intermediary services are 100% safe. We direct all necessary payments to different suppliers without you having to worry about terms and conditions.
Using an Intermediary Service Provider
Why it Matters
You may be wondering why hiding your suppliers is important. When you are shipping goods, this information is kept in customs and can be accessed by anyone. Not using a qualified intermediary put your information at risk. In the end, it pays to keep your name off the record by using an intermediary company. In short, people will not see our company and supplier name on customs documents.
Having a qualified intermediary has three main benefits: decreased taxes, reduced liability, and supplier confidentiality. Firstly, nobody wants to pay more taxes than necessary. Import taxes can increase your costs and make your prices uncompetitive. Our qualified intermediary services help you avoid additional taxes. Secondly, as an intermediary company we act as the liable entity with customs. We are experts and never have customs issues. Thirdly, our payment intermediary services avoid having to handle numerous bills and foreign bank transfers. We do all the accounting work for you. You pay one invoice, and we pay all entities involved.
We can easily coordinate with suppliers/manufacturers and provide immediate payment methods which most clients do not have. To sum it all up, we make transactions flow smoothly and everything becomes more convenient for all parties involved.
You can also checkout this article which highlights why intermediary services is critical to import/export businesses.
Want to Combine Services?
Optimizing your supply chain through sourcing solutions is a smart business decision, but only when you find the right intermediary company. This is why it helps to have experience on your side. Our qualified intermediary services are made specifically for SMEs looking to minimize their risk.
Each project requires customized attention. You can choose standard packages or go for a personal-driven solution. Make the best combination for your success and we will deliver it to you with great care!
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