Pure International Commercial Middlemen

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Russian: Чистые международные коммерческие посредники

There are many types of commercial or trade middlemen in practices of international logistics. Their main role is to facilitate creating integrated global supply chains between an original seller (manufacturer) and a final buyer (consumer, user). These middlemen – in accordance with national business traditions – are known under different names. However, they have often the same operational, financial, economical, and juridical features. Under any names (e.g., Distributor could have such names in English as “reseller”, “jobber”, “dealer”, “merchant”) main features of all these middlemen could be reduced to three “pure” types (See. the table below): agent, consignee, and distributor. And their main functions (rights and obligations) are strongly overlapped that could be extracted as a result of analyzing relevant contracts and agreements.

Pure int E.jpeg

LEGEND:

  • AGENT [MANUFACTURER’S REPRESENTATIVE] – A person or business unit that negotiates purchases or sales or both but does not take title to the goods in which it deals. Agents commonly receive remuneration in the form of a commission and/or fee. They – in contrast with a Broker – do not usually represent both buyer and seller in the same transaction. However, agents are similar to brokers, except than agents tend to have long-term relationships with their principals whereas brokers, in general, do not. A manufacturer’s agent is the agent (middleman, intermediary) who takes neither title nor possession of the merchandise he or she helps to sell. Nonexclusive agent could represent several noncompeting producers of goods that are purchased by one type of trade (e.g. agents in women’s apparel might sell dresses, blouses, belts, coats, stockings, and so on, for different manufacturers).
  • CONSIGNEE - the individual or company to whom a CONSIGNOR sends merchandise to sell this one on terms and conditions stipulated in a consignment agreement in which one party (the “CONSIGNOR”) provides goods to another party (the “CONSIGNEE”) for sale by that CONSIGNEE. The CONSIGNOR gets paid only after the CONSIGNEE has sold the goods to an end-consumer purchaser.
  • DISTRIBUTOR [DEALER] [RESELLER] [JOBBER] [MERCHANT] – A firm (or an individual) selling manufactured products either to retail outlets or direct to consumers. In common parlance, DISTRIBUTORS are often thought of as having closer and more long-term relationships with the MANUFACTURERS [VENDORS] from which they buy than wholesalers.



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