Question:
I am working with a couple of agents and two of them want to visit the supplier on their client’ s behalf. I am in the process of having them sign the nca agreement, but I honestly don’ t know what to do next.
The reason for them visiting the supplier is to either decide whether or not the supplier is reliable and to make an advance payment, or to issue the lc at sight.
What do I do?
The contract states the agent is not allowed to reach out to my supplier, but it seems they are acting like a company representative.
How do I organise this with my supplier?
One of them will not give me a loi until he has personally checked out the company. Seems sketchy. I don’ t want hand over my supplier like that.
Any advise would be appreciated.
Nat
Answer:
Find out what relationship they have exactly with the buyer.
Is the are in the same location, then that may be understandable.
Ask them if you can talk to their buyer in the same way they want to visit the supplier.
You want to talk to the buyer to ensure that his reps are legit.
On the other hand, it could be simple brokers who just want the contact details of your supplier.
So before you hand that over, you need to find out if they are for real, ideally form their buyer.
Amin
Question:
That’s just it. They are not in the same location and acting as agents. Somehow I hear this often: agents who visit both new buyers and suppliers. They are quite open in communication. Send me pictures of them visiting suppliers. I am not sure how this works, but I can only think they woud visit their own suppliers, not mine.
I don’t like it. This is my biggest supplier who offers a wide range of products and has many joint companies working together in all asia. It’s my personal gold mine. I don’t want to come accross as distrusting, but I also want to stand my ground.
Judging from the conversations I had, they are protective of their buyers. I doubt I will get to talk to them.
Should be an easy call to make if they refuse, however I think this is a new trend we need to consider. Some of my buyers travel around the world too to meet new suppliers. Especially buyers in the middle east.
Personally, I got half a dozen of invitations from suppliers AND buyers as well.
Amin, can you help me find the right words to say to these guys and explain what this new phenomena is/means if you have any kind of experience with it? I have heard about suppliers having a company rep, but buyers? Hope you can shine a light on this.
Answer:
The only time something like this happens is when the agent has a personal relationship with the buyer. They do all the work for the buyer and check out suppliers for him. That is ok.
But if they are not even in the same place, then it’s very suspect.
If they expect you to divulge your source, then they must be prepared to do the same for their buyer with a non-circumvention agreement.
I do suspect in this case that they just want the contact details of the supplier.
What you can do is talk to your supplier and tell him that you will put these two people in touch with him and he has to remember to not let them circumvent you. That’s one way to go.
Explain the situation and clarify the situation with them.
Just say it diplomatically…
——–
As you know, I am a consultant for my supplier, who pays me for the deals I bring him. I usually don’t reveal my source, except to the end buyer under contract. But here, you are asking me to reveal my supplier to yourselves (as agents).
For me to do that, I need to ask you for a couple of things…
How are you related to the buyer?
How long have you known him?
Has he asked you to visit the supplier on his behalf?
Who will be paying for your visit?
What date exactly can you travel?
Are you happy to sign a non-circumvention agreement?
Secondly, since you represent the buyer, I would also need to speak to your buyer to make sure that you do indeed represent him. Sometimes, I receive requests to contact the supplier just for network purposes rather than for serious purchase purposes.
Once he confirms that you represent him, then I can pass you my non-circumvention agreement and we can continue the deal.
Third, I would also need a ICPO from the buyer, on his letterhead to confirm that he is after this product at this time. I would pass this on to the supplier to ensure no circumvention takes place.
Are you happy to go along with this procedure?