Trading Partner Definitions

2017-04-25 00:48

A trading partner is loosely defined as a company or entity that another company or entity does business with regularly. How a trading partner interacts with your company depends on the relationship. In Envio, Trading Partner relationships can be broken into seven basic categories:

  • CustomerA person or company who purchases inventory from your company.
    • Examples: A food distribution warehouse, brokerage firm, or individuals who buy gift boxes.
  • AssociationAn association is an organized group that shares common views for a common end. They work toward their mission by its members’ cooperative effort.
    • Examples: United Fresh Produce Association and Produce Management Association (PMA)
  • Supplier: A person, company, or vendor that provides materials or commodities for you to pack or use in creating a finished product.
    • Examples: A corn grower who sells raw produce, a cardboard tray manufacturer, an import company that sells you raw berries.
  • Freight BrokerA person or company who is compensated for arranging the transportation of property or inventory by an authorized motor carrier.
    • Examples: A company that arranges trucks to deliver your inventory to the next state but does not take possession of the inventory (freight forwarders take possession while in transit.)
  • ReceiverA person or company that physically receives shipped goods from your company at their location, but may or may not be the customer.
    • Examples: A chain store owns Store #177 but all billing and invoices should be sent to headquarters. Store #177 is a receiver as they do not deal in billables or payables. 
  • Broker: A business intermediary that puts buyers and sellers together to facilitate a transaction. Brokerage companies are compensated by commission after the transaction has been completed.
  • TransporterA person or company that moves product between locations, to customers or to receivers.
    • Examples: trucking companies, cargo shippers, and rail shippers
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