What’s the relationship between trading company and factory

What's the relationship between trading company and factory

We all know that if the customer directly from the factory procurement price will certainly be much cheaper than through the trading company. But why customers still prefer to spend a little higher prices to foreign trade companies to purchase it? The relation between trading company and factory is close and inseparable.

The cost of the direct purchase from the factory price is lower than the adoption of foreign trade companies. Customers often need a variety of products, and it is difficult to get from a factory where including all kinds. Then in order to meet their own needs, he must be equipped with enough manpower and different work. In fact, this has increased his manpower costs, but also offset from the low-cost procurement. This is a very common in daily necessities and department stores.

As a customer, he needs a stable supply channel. After all, he is not a direct consumer so he wants to be normal procurement at any time to ensure the normal supply to the local customers. If he is directly from the factory procurement once the factory side have problems.

He is faced with a question of how to find a substitute. It is not easy to find a substitute. It also needs time. This is the existence of the overall supply chain and becomes more stable through foreign trade companies to purchase.

We all know that the market order is the key to maintain the development of trading in balance.

We should know that many of the domestic procurement of customers are not direct users, but the broker. But why foreign users do not directly purchase from domestic factory? The history of business has formed a stable factory run model. Foreign trading company, together with factory have been a mature industry chain between purchaser and supplier. After all, trading company, as a role of broker, is improving the relation of consumer and factory.

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