1. Logistics
retailing
WHOLESALING
In Pakistan
Presented to
Dr. Zeenat Jabbar
Presented By
PMS-FA13

2. Logistics, Wholesaling & Retailing in Pakistan
Retailing is the last stage in a channel of distribution
Role of Retailing
Collection of products and services from wide variety of suppliers
Retailer provides information to end customer
Break Bulk and provide products according to customers need
Conclude transaction with final customer

3. Logistics, Wholesaling & Retailing in Pakistan
Retailing in Pakistan (An overview)
Types of retailers
Small retailers
Large retailers/ wholesale retail stores
Department stores
Super markets
Street vendors
Vending machines
Mail order selling
Utility stores
Cooperative stores
Medical & general stores
Specialty stores
Juma, Mangal or Itwar Bazars
History of retailing "from peddlers to chain stores"

4. Logistics, Wholesaling & Retailing in Pakistan
Dynamic nature of Retailer
Factors that can influence retailers
Environmental, Economic, Political, Ethical, Technological & Managerial

5. Wholesaling types There are mainly four types of wholesalers
Merchant Wholesalers
General Wholesalers
Specialty Wholesalers
Specific Product Wholesalers 
Discount Wholesalers 
Drop Ship Wholesalers
On-line Wholesaler

6. Wholesalers Wholesalers add value by performing channel functions
Selling and promoting
Buying assortment building
Bulk breaking
Warehousing
Transportation
Financing
Risk bearing
Market information
Management services and advice

7. Selling and promoting involves the wholesaler’s sales force helping the manufacturer reach many smaller customers at lower cost
Buying and assortment building involves the selection of items and building of assortments needed by their customers, saving the customers work

8. Bulk breaking involves the wholesaler buying in larger quantity and breaking into smaller lots for its customers
Warehousing involves the wholesaler holding inventory, reducing its customers’ inventory cost and risk

9. Transportation involves the wholesaler providing quick delivery due to its proximity to the buyer
Financing involves the wholesaler providing credit and financing suppliers by ordering earlier and paying on time

10. Risk bearing involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence
Market information involves the wholesaler providing information to suppliers and customers about competitors, new products, and price developments

11. Merchant wholesalers is the largest group of wholesalers and include:
Full-service wholesalers who provide a full set of services
Limited-service wholesalers who provide few services and specialized functions

12. Brokers and agents do not take title, perform a few functions, and specialize by product line or customer type
Brokers bring buyers and sellers together and assist in negotiations
Agents represent buyers or sellers

13. Manufacturers’ sales branches and offices is a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers

14. Merchant Wholesalers:The merchant wholesalers are the middleman who take little to goods (purchase) and sell them to retailers for further selling individual consumers on piece meal basis. The merchant wholesalers purchase the commodities in bulk, operate warehouse for storage, offer credit and goods to the retailers

15. Types
1) full line wholesalers Full line wholesalers are those who supply a complete line of goods to a business. For example, a hospital supply company may supply all the requirements of the hospital alone. Or a grocery supplier may carry a full stock of grocery goods etc. 2) limited line wholesalers The limited line wholesalers perform limited functions than do merchant wholesalers. They specialize in a limited line of products such as auto spare parts and sanitary goods and washing machines.

16. Limited Service Wholesalers: Offer limited range of services
Limited Service Wholesalers: Offer limited range of services. Types: Cash and carry wholesalers: Normally stock a limited line of fast moving products that are sold to small retailers. Customer picks up and pays for the goods at the point of transaction. Examples: In 2007 METRO Cash & Carry opened its first wholesale store in Lahore, the economic and cultural centre of northern Pakistan. Thereafter four more wholesale stores were opened in cities of Islamabad, Faisalabad, Karachi and another one in Lahore. In the Asian state, the self-service cash and carry concept has yet to become established nation-wide. The trading industry is still heavily influenced by tradition, dominated by small stores and street markets. However, the demand for quality, high-class products is growing. METRO Cash & Carry therefore intends to expand its sales network.

17. Truck Wholesalers: Truck wholesalers or jobbers sell and deliver directly from their vehicles, often for cash. They carry a limited line of semi perishables such as milk, bread, and snack foods.
Drop Shippers: operate in industries associated with commodities handled in bulk such as building materials and heavy equipment. They do not normally inventory or transport the product. When they receive a customer order they will locate a suitable supplier who in turn delivers the product to the customers.

18. Rack Jobbers: Normally provide highly advertised non food products and accompanying services to grocery, convenience and drug stores. Products supplied by them include toys, greeting cards, hardware items, health and beauty aids. Producers Cooperatives: This type of distribution is performed by a group of agricultural producers who assemble food products from co-op members for sale in local markets.

19. Mail order wholesalers: depends on the sale of products from a catalogue. Products are selected from catalogue and then delivered through different means of transportation.

20. Brokers
The primary role of brokers is to serve as middlemen, bringing seller and buyer together and assisting in price, product and delivery negotiations. They are usually paid for the services by the party that contracted them.

21. Trends in Wholesaling Challenges Resistance to price increases
Lack of suppliers
Changing customer needs
Adding value by increasing efficiency and effectiveness

22. Wholesaler Marketing Decisions
Target market and positioning decisions
Size of customer
Type of customer
Need for service

23. Wholesaler Marketing Decisions
Marketing mix decisions
Product
Price
Promotion
Place