Seeing The Whole Picture: A Wholesalers Role In The Retail Chain
You probably realize that, as a retailer, you need to get as close as possible to the source of your products to maximize your profit margins. But if youre like most retailers, you may think that means going to the product manufacturer. You might assume that because the wholesaler stands between you and the manufacturer, the wholesaler is a middleman. But by that logic, you as a retailer are also a middleman, standing between the manufacturer and the end user.
To Each His Own
The fact is that each one of these entities plays an important and necessary role in the retail supply chain:
The Manufacturers primary function is making productstheyre not set up to supply individual retailers with small quantities of those products. Through a very complex process, they qualify and authorize a select few wholesalers to distribute their products to retailers on their behalf.
The Wholesaler, according to Don Beavers, provides a tremendous service to both the manufacturer and the retailer alike. Wholesalers have the necessary infrastructure to stock massive amounts of product, and to take and...
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