Distribution Wholesaling n n n Distribution Middlemen Wholesale

Distribution - Wholesaling n n n Distribution Middlemen Wholesale Trade Warehousing Setting up a Wholesale Business

Distribution n Main functions: (1) ownership of goods: transfer from Producers to Consumers (2) add value to products (3) provide employment opportunities n Purpose: right price right quantity right time product right place

Channels of Distribution n Channel 1 Producer n Channel 2 Producer n Consumer Retailer Consumer Wholesaler Consumer Channel 3 Producer

n Channel 4 P W R Selling service and products Store goods and distribute goods to retailer n C Channel 5 P E I W R C

Choice of Distribution Channel n n Nature of product Cost of product Market Size of the order

Middlemen n Who are “Middlemen”? à Middlemen are organizations or people in the channel of distribution linking the producer and the consumer

Wholesale Trade Breaks bulk Store goods Wholesaler Deliver goods Bears risk Provides choices Provide trade credit Provide advice Promotion

Types of Wholesalers Merchant wholesalers Wholesalers Retailers’ co-operative Other distributors General Full-function Specialist Limited function Import/export Industrial Factors Brokers Agents

Warehousing n Two types of warehouse: Ù storage warehouse Ù distribution warehouse

Setting up a Wholesale Business n Where should the business be located? n What sort of premises are needed? n What finance is needed? n How should the operation be organized?