Why Sellers and Buyers Keep Orientrue In Between

With more and more market transparency, especially language barriers amount almost to none, many producers and the customers are making transactions directly. With such trend prevailing, you may wonder why some sellers and buyers still prefer to keep Orientrue in between as an agent or a distributor or a coordinating party. The answer lies in one word: value.

What is the value Orientrue contributes to the supply chain?

1) Ease

While many direct transactions between suppliers and buyers have to negotiate their contracts one by one, Orientrue can collect individual orders and put them into a comparatively bigger order. Just consider of the to-and-fro clarifications of technical and commercial terms for potential orders! If you have 10 prospects whose orders add up to the other’s single order amount, you might envy them their luck.   From the buyers' perspective, they are released from the burden to handle foreign trade procedures, and have easy access to the answers to the frequently asked questions regarding certain product or producer.   What’s more, two decades experience in export and import business enable us to find most effective solutions for various problems as suppliers and buyers might confront. Less work load and all concerns with good answers. Why not?

2) Safety & Security

“Discretion is the better part of valour.” As professional international supply chain service team, we take care of every case with thorough consideration from legal matters to practice concerns. There’s no business with risk. But there is possibility to minimize the risk, and prepare the risk with counteractions and remedy pre-emptive measures.   

3) Cost-efficiency

Last be not least, cost-efficiency is at the core of our service value. With cost pressure and objectives to keep competent, businesses are endeavoring to save any penny possible. Orientrue doesn’t earn money by adding extra cost to the customer as most other middleman business. But how possible? Orientrue acts as a value-adding partner instead of a cost-adding third party due to our close cooperation with all the participants in the supply chain, with a single guide of logic we illustrate as the cost variation formula:

Δ Cost = Δ Risk Pressure * Δ Time Pressure

It means increasing cost or decrease cost is related to risk management and time management. One a participant in the supply chain contribute to lessen risk pressure and time pressure, the total cost will be deducted.

For instance, optimizing procures to crack down time pressure. One of our customer who had been firefighting its supply chain many years ago. They frequently called the supplier for urgent delivery. You can see the urgent delivery surely increases the risks and time pressure, and as the result, their purchasing costs were very high. With our consultant’s help, this company reviewed its procedure regarding sales forecasting, production planning, and purchasing, and they adopted a procedure with better visibility and less urgent purchasing.

Several examples can be about delivery-related risk. Companies who don’t have professional foreign trade team are very likely to involve into delivery-related troubles, ie, customs declaration failure, inspection procedure delay, and even banking procedure violation. Many real stories can be shared: a famous French firm once export a production line to China, and an innocent staff put a few pieces of personal belongs into the package of machine, which incurred demurrage, penalty, and even smuggling investigation!!!   Once a German firm signed a PO for 500 sets of a product whose production would take quite some time. In response to the customer’s request 5 sets were sent as free of charge example, which led to infringement to the banking procedure...   

Another example is minimizing redundancy risk: An auto parts producer who is selling to US, they took Orientrue as export agent to avoid developing their own export team. This approach released them from hiring an export team through years with export rise and fall. The function out-sourcing releases them from redundancy in the slack season.   

To sum up what Orientrue can contribute to the supply chain, we function as below:

1) Facilitate the supply chain with expertise to minimize procedural, financial, and legal risks;

2) Put individual orders into comparative bigger orders to save the suppliers from unnecessary negotiation work load.

3) Arrange shipments collectively to minimize the transport costs, custom expenses, banking charges, etc and hence increase price competence to meet customer’s cost reduction need.

4) Arrange buffer storage in China to increase the availability and prompt delivery.

To recap, Orientrue endeavors to make the transactions easy, safe, cost-efficient by minimizing your time pressure and risk pressure and maximizing your price competence.