Jul.2023 17
Views: 89
Why sometime customer work with trading company not directly with factories?
Introduction
Can factories imporve the services and flexibilites to satisfy the customer?
Details

Language and cultural barriers: Many factories are located in different countries or regions, and customers may face language and cultural barriers when trying to communicate directly with them. Trading companies typically have multilingual capabilities and a better understanding of different cultures, enabling them to handle international business communications more effectively.


Reducing transaction complexity: Direct cooperation with factories may require customers to handle more details and paperwork, such as trade compliance, customs affairs, international shipping, and so on. Trading companies usually possess richer experience and resources, allowing them to assist customers in simplifying the transaction process, reducing complexity, and mitigating risks.


Access to diversified products and supply sources: Trading companies often have established stable relationships with multiple factories, providing customers with a wider range of product choices and diverse supply sources beyond what a single factory can offer.


Avoiding issues with small-scale orders: Some factories may not be interested in or capable of efficiently handling small-scale orders or sample requests. Trading companies are generally more flexible in meeting the needs of small-batch orders and sample orders.


Payment and risk management: When working with trading companies, customers can more easily use traditional payment methods, such as letters of credit, to reduce payment risks. Additionally, trading companies may assume some inventory risk and quality issues, allowing customers to better manage potential risks.

Although collaborating with trading companies offers numerous advantages, some customers may still opt to deal directly with factories, especially when they have established solid partnerships or are involved in large-scale orders. The choice of whom to cooperate with depends on the specific needs, goals, and circumstances of the customers.