WHOLESELLING & LOGISTICS

Wholesaling

Introduction

•Wholesalers are individuals or organizations that specialize in procuring goods fromProducer to the customer, they pas through several intermediaries in the form of wholesalers, retail outlets etc•Act as facilitators for distributing goods and products•Vital link between manufacturer and reseller

Wholesale Example

1 Kotler example:Costco2 local example:Makro3Medical application:Supreme medical

Concept

Wholesaler have to make decisions on the BEST WAY to store and move good and services to the market

Wholesaling and its importance

•Wholesale trade is most common is food products, beverages, drugs, tobacco products, house hold goods etc.

•Simplify the product & information flows between the manufacturer & the end users.

•Provide support to manufacturers & retailers

•Adds value to the goods.

Why are Wholesalers Used?Wholesalers are Often Better at Performing One or More of the Following Channel Functions:

Challenges in Wholesaling

•Inventory management

•Sales Management

•Promotion Management

•Financial planning & management

Strategic Issues in Wholesaling

•Target market decisions

•Marketing mix Decisionsa)Products to offerb)Product pricingc)Product positioningd)Promotione)Place

Future of wholesaling

•E- commerce

•Strategic alliances

•Supply chain integration

•Globalization

LOGISTICS

Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements.

e.g. of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, animals, equipment and liquids.

LOGISTICS & WHOLESELLING

TYPES IN LOGISTICS

• Production logistics : It connects procurement to distribution logistics. Its main function is to use available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.

TYPES IN LOGISTICS

• Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation.

• Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.

Conclusion

1 Successful retailers and wholesalers adapt their services to meet suppliers and customers needs.2 Marketing Logistics decisions are the best way to store and move goods and services to market destinations.3 Major trends in logistical efficiency have come from advances in information techonology.