Today, only a handful of timber distributors and buyers are globally active with agile supply chains. This is because most of them are established in just one or two markets. Some buyers are often seen sending incomplete inquiries to the distributors due to their lack of appropriate information about the procedure of moving forward with a tender and the market situation. This results in several missed opportunities for both counterparties in the long run.
However, there is a fundamental problem with this way of trade. In case there are any changes in exchange rates and legal frameworks or natural disasters like forest fires and port strikes, a crucial part of the supply chain for those who focus on just one market gets affected for an uncertain period, causing a delay in the delivery timelines.
The Importance of Trading in a High-Trust Trade Network
The best way to avoid a delay and focus on a streamlined supply chain is to build a high-trust trade network with leading and vetted companies from around the world and source at least part of the requirement from different producing markets. Some of the benefits of trading in such a high-trust trade network include:
- Currency volatility
- Reduced market volatility
- Risk diversification
- Increased EBITDA
- Recent updates on the logistical situation, per-market
- Regional & global performance indicators for production and supply
- Access to varied dimensions & species of products from key markets in different price ranges
How does Timber Exchange Help in the Process?
The Timber Exchange platform is designed by industry professionals with several years of experience to provide a trusted platform and streamlined supply chain for counterparties from all over the world. Whenever a company registers on Timber Exchange, they fill out a detailed company profile thoroughly vetted by the team of experts at Timber Exchange.
This vetting process ensures that only reliable stakeholders with the necessary authentic certificates are trading on the platform. With every offer, you can add pictures of the stock and its details to ensure transparency. You can also control who will be able to see the offer, ensuring only relevant people can view it. This way, you find new clients and view & receive high-quality relevant offers on the platform with ease and complete transparency.
The Timber Exchange platform removes any middlemen from the equation so the stakeholders can directly connect for any deal-related queries. Since you’ll be working with the top-end industrial customers on the platform, who are usually willing to pay a higher price, you will also have an increased EBITDA (profit margin).
To sum up, a high-trust trade network, like Timber Exchange’s B2B Marketplace, can help you find relevant, top buyers with whom you can negotiate directly, get a fair price on the products, and increase your profit margins. Timber Exchange, with an aim to digitize the global supply chain, also features 100+ advanced supply chain tools, a market data hub with 100+ market indicators, and offline services. To know more, feel free to check out https://www.timber.exchange/.