Question

What are the functions of a wholesaler in the distribution chain?

Hint:

Remember key roles: storage, financing, risk bearing, and breaking bulk.

Answer 1

Concept: A wholesaler acts as an intermediary between manufacturers and retailers, performing various functions that facilitate smooth distribution of goods.
Answer:
The main functions of a wholesaler are:

• Buying and Assembling: Wholesalers purchase goods in bulk from manufacturers and collect them at one place.
• Storage: They store goods in warehouses until they are needed by retailers.
• Breaking Bulk: Wholesalers divide large quantities into smaller lots suitable for retailers.
• Transportation: They arrange transportation of goods from producers to retailers.
• Financing: Wholesalers provide credit facilities to retailers and sometimes to manufacturers.
• Risk Bearing: They bear risks related to price fluctuations, damage, or spoilage of goods.
• Market Information: They provide valuable information about market trends, demand, and competition.
• Grading and Packing: They sort goods according to quality and pack them appropriately.