Wholesalers add value to the supply chain.

Question

Quizplus · Accepted Answer

Wholesalers act as intermediaries between manufacturers or producers and retailers, adding value by buying large quantities of products from the former and distributing them in smaller quantities to the latter. They offer a range of services such as warehousing, transportation, packaging, promotion, and credit, which reduce transaction costs, increase efficiency, and generate economies of scale for all parties involved in the supply chain. By doing so, they play a crucial role in helping retailers meet customer demands by providing them with a variety of products at competitive prices, while allowing manufacturers to focus on their core competencies and maximize their profitability.

Wholesalers Add Value to the Supply Chain