Intermediary services are very instrumental to supply chain management and manufacturing businesses. Without these services, 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 in talking to all the suppliers instead of customers communicating with them one by one. They can also be described as “the middleman” but their intermediary services really go beyond than transacting with suppliers and customers.
Different Types of Intermediary Services
Intermediary services as agents/brokers
They usually represent the manufacturers in playing this role and they are the ones responsible to look for 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.
Intermediary services as wholesalers
With this role, they purchase the products in bulk and then 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.
Intermediary services as distributors
Distributors are like wholesalers except they seem to own the product or act as 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.
Intermediary services 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 of 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 qualified intermediary except for being a retailer. Our qualified intermediary may also include but are not limited to doing paper works, checking legalities, handling customs and a lot more. 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.
For more details specifically about what this service is; click here: Further reading on Intermediary Services.