Know The Role Of Wholesale Distributor

Published: 23rd February 2009
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wholesale distributor is a business of selling services to third parties who in turn sell them to their own end customers either directly or after further processing. Wholesale distributors very much existed from the medieval period.

Few examples of wholesale distributor are here: The word "wholesale" can be stated as the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently assemble sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots. While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated.

Wholesalers are also referred as decision support systems for wholesale procurement and distribution. His responsibilities include but are not limited to developing a decision-making framework for the design and operation of a wholesaling system. He also considers the new roles of wholesaling and proposes an optimization model to satisfy best the service requirements at the minimum cost. And by using this model, a prototype decision-support system is developed to build various scenarios and suitable models for these scenarios. A number of management reports are prepared to help managers negotiate prices or volumes, consolidate warehouses, select transport modes, and test the effectiveness of proposed service packages.

Wholesalers can be divided into various categories- one can find wholesale distributors in developing countries. They are located in district or regional cities and take the bulk of their produce from rural assembly markets located in production areas The transaction takes place between the farmers and traders. There is difference between the rural assembly markets and secondary wholesale markets. The secondary markets are permanent in operation.

Some of them even export their products. In some countries, such as India, terminal markets also supply other parts of the country. Usually terminal wholesale distributors are located in major metropolitan areas and the produce is finally channeled to consumers through trade between wholesalers and retailers, caterers, etc. Population growth, changes in urban land-use patterns. The development of modern transport systems has all influenced the suitability and functionality of existing sites.

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