Know How International Trading Companies Play an Integral Role in Exporting and Importing
In today’s fast-paced globalized world, international trading companies play a crucial role in facilitating export and import between the two countries. Their functions include anything from identifying high-demand commodities and suppliers with the capacity of exporting bulk amounts to helping backward & developing countries achieve economic security, making mutually-beneficial trade agreements, resolving conflicts and aiding in trade finance.
Whether you have been doing international trading for years or new to the business, understanding the role that these trading companies play is important for effective communication and compliance with export-import regulations.
International Trading Company – An Overview
According to the traditional definition of a trading company, it is an entity that purchases commodities from one country where the supply is abundant and resells them to another lucrative market where the demand is high. In this case, they purchase a specialized range of goods, maintain stock and ship them to the importing country. Take, for example, Suisse Commodity. It is a reputable trading company that handles every aspect of export-import, being involved in the process directly.
On the other hand, there are international trading companies that do not involve in buying or selling commodities directly. Rather, they act as foreign trading brokers or intermediaries that facilitate the trading process.
Key Functions of a Trading Company in Export-Import
The role of an international trading company in facilitating your export-import business is remarkable. Let’s find out how they can help streamline the foreign trading process:
Discovering high-potential commodities with reliable suppliers: Their first role is to identify commodities that have high demand in other profitable markets. The process also involves connecting with trusted suppliers who have the capability to manage the bulk volume of transactions.
Procuring goods in high volume: The trading company will then negotiate with the supplier on terms of agreement and pricing. Once a profitable deal is drawn, they will purchase goods in bulk (import).
Inspection & certification: On receiving the goods, a team of experts will inspect them and certify the level of quality. This will help ensure that only goods of high value are exported to another country.
Identifying a lucrative market for the goods purchased: Next, they will discover a prospective market where the demand is high for the goods purchased. Trading companies like SUISSE COMMODITY play an integral role here by negotiating with the importer for a profitable deal. Validating the credibility and financial stability of the buyer or importer is also important here to ensure meeting the payment terms.
Both the parties to trade will then discuss and agree upon product delivery, pricing and trading agreements.
Logistics management and transportation: Trading companies typically manage the entire logistics process, product shipping and customs clearance pertaining to export and import of goods to another country.
Value chain management: Some top-level trading companies with a broad market reach will also take care of the supply chain, ensuring the goods reach end consumers at the right time.
In addition to the above, an international trading company like SUISSE COMMODITY can also provide specialised services such as insurance and trade financing.