The Company will provide a seamless service that will give its customers a door-to-door service for the procurement and delivery of their products.
The following services are provided by the Company to its customers.
1 Product procurement
Through an existing international base, the Company will be able to work with its customers in locating and obtaining new products and sources of supply.
In addition, the Company will work with the customers’ existing and new suppliers to ensure that products are procured safely and on time.
2 International buying offices and an expanded supply base
The international procurement infrastructure, which is able to provide customers with access to foreign supplier markets such as China, is already in existence.
This removes the need for the customer to establish costly procurement offices in foreign countries.
3 Purchase of product
Under the terms of a trading and logistics agreement with the customer, the Company will purchase products from suppliers in its own name and arrange for delivery to the approved customer.
4 Insurance of merchandise
The Company will arrange the necessary marine and transport insurance and, where applicable, insure all the stock in its warehouse.
5 Foreign exchange solutions
Often customers buy goods from suppliers in currencies that differ from their base currency. For example, a supplier may issue invoices in United States dollars while the customer trades in sterling.
As exchange rates are continually fluctuating, this can cause uncertainty in the customer’s costing model. If not treated correctly, this can be the cause of considerable foreign exchange losses, which in turn can jeopardise the customer’s business.
The Company will quote and invoice the customer in the local currency and, in doing so, will remove the currency risk for its customer base.
6 Payment of all transport costs
The Company will be responsible for the payment of all freight, transport and clearing charges for all goods it procures for its customers. As a result, the customer will not incur the administrative costs and direct expense involved in this part of its trading cycle.
7 Payment of Duty and VAT
The customer has the option to receive the goods from the Company with duty already paid. This means that the customer will receive the goods with all Customs duty and VAT paid in the base currency in which it trades.
Where applicable, the Company will provide customers with a stock drawdown facility. This will enable the customer to receive stock from the Company’s warehouse over a period of up to three months.
9 Local transport
Usually, the Company will ensure that goods are delivered directly to the customer’s warehouse.
10 Extended credit terms
For selected customers, the Company might provide extended trade credit terms for up to ninety days
Summary of Customer Advantages
- Reduced foreign exchange risk.
- Reduced administration and related costs.
- Lower insurance costs as a result of the matched cash-to-cash cycle.
- Access to greater sources of supply and procurement facilities.
- Proven increase in profitability.
11 Administration Platform
The Company has developed a sophisticated logistics and trading software platform to support its efficient operation.