The importance of wholesalers in distribution

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The importance of wholesalers in distribution

As a retailer, you’re going to be needing the help of wholesalers a lot in order to have products available at all times. The relationship with your provider is extremely important. What can help you build a strong and long-lasting bond with your own wholesaler is knowing how their business operates and how it impacts your own. 

Here at DK Wholesale we’ve put together a guide on what suppliers do for retail companies, so you can understand the importance of a wholesale business. Continue reading this article to find out what responsibilities distributors have and why they play a key role in the entire process. 

Being in charge of promotions and sales

A wholesale business is going to be promoting the products locally. Suppliers are involved in the sales process, as well. Providers receive certain sales targets that they always strive to meet. 

Being in charge of promotions and sales

As wholesalers are unable to cater to every single retail company, they only deal with sales in their area. Wholesale businesses typically focus on one product category and build long-lasting relationships with retailers in that field. 

Managing the inventory

Providers also manage the inventory constantly in order to ensure they have the right amount of stocks for the entire region for which they supply. This process is called assortment and keeps the wholesaler’s clients satisfied.

If a retail company sells different types of products, those items won’t be purchased at the exact same time. This is the reason why keeping and maintaining an inventory is essential – no overstocking or understocking. 

Breaking the bulk

Manufacturers deliver their products to wholesale companies in bulk. The truck transporting the goods gets fully unloaded when it reaches its destination – the wholesale business. 

Once that’s done, wholesalers break the bulk down into batches and deliver them to their own clients using smaller vehicles. The entire process is called breaking the bulk. It’s advantageous for both parties involved as it saves manufacturers money and it provides wholesalers with large quantities. 

Warehousing

As wholesale businesses intend to provide for an entire region, the company has to gather enough goods in order to supply all of their retailers constantly. Local wholesalers do the warehousing themselves and provide their clients – individual shops – with the items they need to sell to the public. 

Transporting the goods

Wholesale companies are also in charge of the transport since they already know all about the retail outlets of their own customers, including their location and opening hours. 

Transporting the goods

In this way, planning routes becomes easier and more cost efficient for wholesale businesses. Providers are located closer to retailers than manufacturers, which means that they are able to supply the shops much faster. 

Offering market information

Wholesale businesses provide relevant information regarding the manufacturing market – size and potential. They also offer details concerning the competition, including their next move.

This represents valuable insight for the retailer as they become aware of what competitor is doing well and in which field. The majority of experienced marketing managers ask their wholesalers for feedback.