Wholesale Supplies: The More You Buy, The Cheaper It Gets

May 8, 2008 | By admin In Passive Income |

Wholesaling consists of the sale of goods and merchandise to retailers, to industrial, commercial, institutional, or other professional business users or to other wholesalers and related subordinated services. According to the United Nations Statistics Division, wholesale is 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 physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots, for example pharmaceuticals; store, refrigerate, deliver and install goods, engage in sales promotion for their customers and label design.

A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. The entities of a supply chain typically consist of manufacturers, service providers, and distributors, sales channels such as retail, ecommerce and consumers. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer. Supply chain links value chains. There are a variety of supply chain models, which address both the upstream and downstream sides. The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor.

Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end user. This process is known as the distribution chain or, rather more exotically, as the channel. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all important end user.

There have been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services of which the latter offering anything from televisions through to DIY tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sector: for example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector; outlets such as estate agencies and building society offices, for example, are crowding out the traditional grocers and greengrocers from the high street.

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