What Is a Wholesale Distribution?

Wholesale Distribution Overview

Wholesale distribution involves buying products in bulk from manufacturers at low prices and then selling them in smaller quantities to retailers. This streamlines the supply chain process connecting all involved parties.

Key Processes in Wholesale Distribution

  • Sourcing and procurement
  • Inventory management
  • Order fulfillment and delivery
  • Transportation and logistics
  • Marketing and promotion

Examples and Types of Wholesalers

Examples

  • Costco
  • Trafigura
  • Sysco

Types of Wholesalers

  • Manufacturers
  • Exclusive Distributors
  • Regional Distributors

Wholesale Distributorship Explained

A wholesale distributor buys products in bulk directly from manufacturers and sells them to retailers or other businesses. The distributor plays a crucial role in the supply chain alongside manufacturers and retailers.

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