What does a broker do in the supply chain managementSolution

What does a broker do in the supply chain management?

Solution

Supply chain management has got freight brokers who match cargo with carriers. Their role and dunction is to match shippers with the transportation service so that the goods can be transported. These brokers are responsible for coordinating shipping requirements of companies. These brokers also negotiate the prices between the shipper and the carrier.

In supply chain management, there are also brokers who are concerned with customs clearance. As the duty rates as well as customs clearance differ from one country to another, there are issues related to value declaration, tariff classifications and duty management that needs to be resolved in the supply chain management. This is where broker comes into picture in supply chain management.