1. Distribution - Wholesaling
Middlemen
Wholesale Trade
Warehousing
Setting up a Wholesale Business

2. Distribution Main functions: Purpose:
(1) ownership of goods: transfer from Producers to Consumers
(2) add value to products
(3) provide employment opportunities
Purpose:
right price
right time
right quantity
right place
product

3. Channels of Distribution
Producer
Consumer
Channel 2
Producer
Retailer
Consumer
Channel 3
Producer
Wholesaler
Consumer

4. Channel 4 Channel 5 P W R C P E I W R C Selling service and products
Store goods and distribute goods to retailer
Channel 5 P E I W R C

5. Choice of Distribution Channel
Nature of product
Cost of product
Market
Size of the order

6. Middlemen Who are “Middlemen”?
Middlemen are organizations or people in the channel of distribution linking the producer and the consumer

7. Wholesale Trade Wholesaler Provide trade credit Breaks bulk
Store goods
Wholesaler
Provide advice
Deliver goods
Promotion
Bears risk
Provides choices

8. Types of Wholesalers Merchant wholesalers Retailers’ Wholesalers
General
Full-function
Merchant
wholesalers
Specialist
Limited function
Import/export
Retailers’
co-operative
Wholesalers
Industrial
Other
distributors
Factors
Brokers
Agents

9. Warehousing Two types of warehouse: storage warehouse
distribution warehouse

10. Setting up a Wholesale Business
Where should the business be located?
What sort of premises are needed?
What finance is needed?
How should the operation be organized?