• Both the manufacturer's representative and the broker are independent entities compensated by the supplier through commissions. Commissions are variable for brokers, whereas an agent may receive a fixed retainer alongside variable commission.

• A representative is often tied to their supplier by an exclusivity agreement. Consequently, they present their partner supplier's product portfolio and manufacturing capabilities to clients. A broker, by definition, is not contractually bound to any supplier; they can therefore guide clients toward the optimal supplier based on specific requirements (price, flexibility, minimum order quantities, lead times, certifications, product range breadth, etc.).

The agent or broker is compensated via commissions paid directly by the supplier. Depending on order volumes and product value, commission rates typically range between 0.5% and 3%.

An agent is often an expert in their field, possessing an established network that allows producers and suppliers to target the right accounts with precise timing. Working with an agent is less costly for the contracting company, as fixed overhead is significantly lower than for a traditional in-house employee, and variable compensation is tied directly to performance. In addition, travel and client entertainment expenses are typically fully covered by the agent.

• A broker possesses far greater contractual leverage than an individual client could achieve alone. As a result, they can leverage the total business volume generated across suppliers to negotiate more favorable terms on the client's behalf.

• A broker has in-depth knowledge of their qualified supplier network. They put this expertise to work for the client, avoiding costly missteps and significant delays.

• The broker ensures that both parties honor their contractual commitments. They protect the interests of both buyer and seller and act as the primary mediator in resolving any disputes.