WHOLESALING

1
WHOLESALING
2
AGENDA

• INTRODUCTION
• OVERVIEW
• Wholesale Distributors
• Role in Supply Chain
• Essential Tasks
• Innovations

3
AGENDA

• Economies of Scale
• Wholesale Voluntary Groups
• Alternative Federations of Downstream
• Future

4
INTRODUCTION

• Includes
• Trade
• Distribution

5
INTRODUCTION

• Characteristics
• Do not sell to ultimate consumer
• Do sell to
• retailers
• merchants
• contractors
• industrial users
• institutional users
• commercial users

6
INTRODUCTION

• Paradox
• Sell physical products
• Add value through Service
• Epitome of Service Industry

7
AGENDA

• OVERVIEW
• Wholesale Distributors
• Role in Supply Chain
• Essential Tasks
• Innovations

8
OVERVIEW

• Wholesale Distributors
• Largest and most significant
• Characteristics
• Take title
• Independently owned
• Operate one or more warehouses
• 5.8 percent of national income
• 120 jobs

9
OVERVIEW

• Wholesale Distributors
• Semantics
• wholesaler resells to another intermediary
• distributor resells to customer that will use
  product

10
OVERVIEW

• Role in Supply Chains
• Supply Chains
• Many
• Participants
• Intermediaries
• Service Providers

11
OVERVIEW

• Role in Supply Chains
• Supply Chains
• Facilitate
• Store
• Movement
• Origin, Production, Distribution, Consumption,
  Disposal

12
OVERVIEW

• Role in Supply Chains
• Examples
• Manufacturers Sales Branches
• Agents, Brokers, Commission Agents
• Transportation
• Warehouses
• Other

13
OVERVIEW

• Essential Tasks
• SOS/SOD
• Break bulk
• Variety
• Waiting and Delivery
• Spatial Convenience

14
OVERVIEW

• Essential Tasks
• Both
• Upstream
• Downstream
• Performance Measures
• Correctness
• Efficiency
• Effectiveness

15
OVERVIEW

• Innovations
• Wholesaler led
• trade associations
• alliances or consortia
• holding company
• mergers and acquisitions

16
OVERVIEW

• Innovations
• Integrated Supply
• Contracting
• Systems
• Blanket
• Mechanisms
• EDI
• VMI
• Continuous Replenishment

17
OVERVIEW

• Innovations
• Manufacturer - led
• Make
• Not buy

18
OVERVIEW

• Innovations
• Common Elements
• Pooling
• Cut Costs
• Improve Services
• Properties
• Commitment
• Trust
• Compensation

19
AGENDA

• Economies of Scale
• Wholesale Voluntary Groups
• Alternative Federations of Downstream

20
ECONOMIES OF SCALE

• Wholesaler Voluntary Groups
• Independent Retailers
• Properties
• Wholesaler as leader
• Purchase from Organization
• Standardize
• Operating Procedures
• Logo
• Simulate vertically Integrated Channel

21
ECONOMIES OF SCALE

• Alternative Federations
• Retailer sponsored Coop.
• Retailers as owners
• E.G.,
• Ace Hardware
• Sunkist
• Consumer Cooperative REI

22
SUMMARY AND CONCLUSIONS