Compare the two models by commercial relationship, supplier visibility, scope and decision control.
Commercial relationship
A trading company commonly sells goods to the buyer. A sourcing service may instead operate around an agreed service scope. The contract and payment flow should make the role clear.
- Who contracts with whom
- Which party sets the product price
- Which documents are provided
Supplier visibility
Some buyers need to know the underlying supplier and factory, because they have to answer for the origin of the goods or want to keep the option of moving the order. Others prefer a single commercial counterparty and are content not to see behind it. Neither preference is wrong, but the expected level of visibility should be agreed before engaging rather than discovered later.
- Supplier identity and records
- Factory access and verification
- Communication ownership
Control and responsibility
Neither model removes the buyer's responsibility to approve requirements and commercial commitments. The important point is a clear handoff for decisions, changes and quality issues.
- Product approval
- Change control
- Issue escalation
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