In basic terms, wholesale distributors are middleman between the manufacturer, who produces the products, and the retailer, who ultimately sells those products to customers.
Simply put, wholesale distributors purchases products in bulk quantities directly from the manufacturer. Secondly, wholesale distributors redistributes those products to retailers.
Are Wholesale Distributors Different From one Another?
Wholesale Distributors do some overlapping tasks. However, there roles in the supply chain are vastly different. Firstly, distributors work directly with manufacturers. Secondly, distributors frequently have a business relationship with the manufactures that they represent.
Furthermore, many distributors maintain exclusive buying agreements that require distributors to cover a certain territory. The distributor is the manufacture’s direct point of contact to the retail chain. Above all, distributors never sell a manufacturer’s goods directly to consumers. See Here.
Wholesalers Buy from Distributors
Wholesalers buy a large quantity of products directly from distributors. High-volume purchase orders typically improve a wholesaler’s buying power. Distributors almost never buy goods from other wholesalers.
Distributors are strictly B2B Sellers
The Distributors job is to increase the visibility and sales of the product. In this role, they perform many contractual tasks for their suppliers.
Distributors employ a transportation logistics network for delivery from warehouses to retail outlet. This requires large logistics capacity.
Distributor stock products in bulk so they can sell to small retail outlets.
As such, wholesale distributors have a lot in common but with many differences between them.
Wholesalers also differ from distributors in that they typically do not associated with a particular good. Therefore, they do not offer the higher service level or support offered by distributors. This is because the wholesaler is rarely directly affiliated with the manufacturer they buy from. As such, they less familiar with the specifics of the products they sell.
Distributors serve a multipurpose role. They perform in a manner similar to manufacturer’s representative. Also, they promote product placement and solicit orders from the retailer. Furthermore, they also act as wholesalers in that they stock merchandise in bulk.
Ai2 provides leading distribution software to manage the complex order management in this industry. Ai2 Software.