An indenting agency can be seen as a two-way guide between a customer and the seller. The primary job of an indenting agency is to serve the buyer and the seller so that the customer gets the best value for the product, and the seller makes a good profit out of the deal. Many times, an indenting agency is mistaken as a buying agent. While buyers’ agent’s job is to connect the buyer to the seller only, an indenting agency is required to connect both ends simultaneously and sometimes even provide options for shipping processes and warehouse storage facilities until the process of transaction is completed. Indenting agencies also make sure that both the parties are benefitted from the deal and profit is distributed accordingly.
Using indent agencies can be of great use for both the sellers and the buyers since agencies like this have a wide range of knowledge and special access to networks which the buyers or sellers may not have access to or the related resources to get benefitted from it. Also hiring the agencies for the contract saves a lot of time and recurring expenses by both the customers, which can be used to devote to other matters of immediate attention.
The work of an indenting agency is to unite the party which intends to sell its products and the party which is looking for that product to buy. Apart from the meeting process, an indenting agency is required to store the goods undergoing the deal till the transaction is over in both the ends. The indenting agency is also responsible for the timely and accurate shipping of the concerned product. In many places indenting agencies are linked with the sellers and are held responsible for the introduction to the potential buyer and ensure that the company makes the most profit out of the deal, unlike the buyer’s agency who is supposed to find the best alternative for the buyer and ensure the best product at the lowest price for its clients.
An indenting agency usually offers services undersigned contracts and specified terms and conditions. A typical contract contains the scopes and limits of the agency’s service, the tasks they are supposed to overlook during the period of contract on behalf of the client and addresses to the concerned authorities that the client is open to offers and is ready to strike a deal with the suppliers. It also contains the fee and commission details of the contract for the specified time. In case of fee structures, flat rates are laid out according to the opted services, and in case of commission services, a particular percentage is fixed which the client has to pay from the total effective deal price. The terms and conditions are within the jurisdiction of the place they are associated with and are required to be in compliance with the respective laws and rules for the same.
One of the ways in which an indenting agency is work is by hiring local agents later termed as indent agents. Companies, in their infancy, may need customers from local areas, sometimes established companies too need to expand and may need help from local entities to expand their business. Hence to mark their presence in the market, these producers hire local agents and seek their help to sell their products. These local agents officially are termed as indenting agents if under contract. These indenting agencies now serve as the middlemen of all sales. They are then paid according to the contract signed, and such sales are termed as indent sales.
A sale is only qualified as an indent sale as long as the local agent works on behalf of a non-local entity. The agent is required to take orders and then agree or disagree accordingly with respect to the terms set by the parent company.
The involvement of the indent agent ensures that the parent company has a strong foothold in the market even though it did not have an established presence. Moreover, if the agent is commissioned on sale then the company is not penalized in case the sales drop below the profit threshold. Also having a unified dealer saves the producer from dealing with different local vendors.
The Indenting agency also needs to cover up for the lack of control and the agents due to remote controls and management. This also may lead to chaos and mismanagement which the agents need to take care of.
The working of the indenting agency can also be summarized in these few steps:
Once an indenting agent is free from one contract, he/she is free to strike other deals and continue the cycle. Many times, the contract period can span up to many years, or even lifetime contracts are possible. Since an agency is made up of many agents, the cycle can continue between multiple companies in parallel without any difficulties and the commissions are shared to the agency itself after which the agents are paid accordingly.