Working with a sourcing agency can offer companies many advantages – from reducing administrative tasks to optimizing procurement processes. But what costs are involved, and which model is most suitable?
In general, sourcing agencies offer two common pricing models: an integrated margin within the product price or a transparent handling fee.
With this model, the sourcing agency manages the entire process – from supplier identification and negotiations to quality control and logistics. Companies receive the finished product without additional administrative effort.
Advantages:
No separate service fees
Costs are directly included in the product price
Minimal effort, as the sourcing agency handles the entire procurement process
Reduced risk, since quality assurance and supplier communication are professionally managed
Disadvantage:
No direct contact with the manufacturer; all communication runs through the agency.
Dieses Modell eignet sich besonders für Unternehmen, die eine zuverlässige, reibungslose Abwicklung bevorzugen und sich nicht mit den Details des Sourcing-Prozesses beschäftigen möchten.
Companies that want greater control and visibility over procurement can opt for a handling fee model. In this case, a fee is charged based on the net purchase value, and the client receives direct contact with the manufacturer. The sourcing agency supports and supervises the process, while orders and payments are handled directly between the company and the supplier.
Advantages:
Full transparency regarding purchase prices and manufacturer contacts
Direct negotiation opportunities with the supplier
Greater control over the entire procurement process
Disadvantages:
The client assumes responsibility for orders and contracts
Increased administrative effort due to direct communication with the supplier
This model is ideal for companies that want to be actively involved in the sourcing process and build long-term supplier relationships.
Whether working with a sourcing agency based on an integrated margin or a handling fee makes more sense depends on your individual requirements:
If you are looking for a simple, stress-free solution, you will benefit from the “all-in-one” model.
If you prefer transparency and direct negotiations, you should consider the handling fee model.
Every procurement strategy has its advantages and disadvantages. The key is determining which model best aligns with your internal company structure and strategic objectives. Contact us now to receive a free quote or book a free, non-binding initial consultation today!
