OUR SERVICES
Cross trade Services
Cross Trade refers to Triangular Operations or Cross Selling, a term widely used in the vocabulary of international transactions. It facilitates not only the movement of goods but also the reduction of costs, and up to three different companies participate in it
What is cross-trading and how it works?
Before starting to show its numerous advantages, it is essential to address what this term consists of to understand all its logistics applications better.
Cross Trade refers to Triangular Operations or Cross Selling, a term widely used in the vocabulary of international transactions. It facilitates not only the movement of goods but also the reduction of costs, and up to three different companies participate in it.
How does Cross Trade work?
In Cross Trade, each of these three companies is located in a different country, one of them acting as the intermediary between supplier and end customer. The purpose of this company is to coordinate the shipment of the merchandise, evaluating on the one hand the demand and on the other the offer of the product in a certain place.
What are the advantages of cross-trading?
Speed and immediacy is the main advantage. And it is that the product is transported directly between the two agents involved, the supplier and the end customer, without having to go through an intermediary, although he is the owner of the operation at all times.
The intermediary is always a professional and trustworthy company, not just anyone, which is why it is important to analyze who will be the intermediary, their experience, and their knowledge of the sector.
Other advantages of Cross Trade are the reduction of costs and time since it avoids displacements, and therefore economic savings for all the agents involved. In this sense, the manufacturer receives a quick payment with full guarantees, while the end customer gets a better price since there are fewer costs in terms of storage of goods at intermediate points. Shipping savings with Cross Trade is considerable.