For a freight forwarder, sourcing and trading can refer to two different aspects of their business:
Sourcing: Sourcing refers to the process of identifying, selecting and acquiring products to be transported or stored on behalf of their customers. This may involve finding suitable suppliers, assessing their ability to supply quality products and meet deadlines, and negotiating purchasing terms.
Trading: Trading involves commercial transactions and negotiating the terms and conditions of the purchase or sale of goods. For a freight forwarder, this may involve negotiating transport rates with sea, air or land companies, as well as managing contracts and commercial documents relating to transport operations.
In short, sourcing involves the supply of products to be transported, while trading involves the negotiation of commercial conditions and contracts relating to these transport operations. Both aspects are important to ensure the availability of products and the profitability of the transport services offered by the forwarder.
