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Distribution systems
Published in Thomas E. Johnsen, Mickey Howard, Joe Miemczyk, Purchasing and Supply Chain Management, 2018
Thomas E. Johnsen, Mickey Howard, Joe Miemczyk
Wholesalers have remained in place in channel structures which serve multiple, smaller, often independent retailers. The main advantage here is that the wholesaler can obtain a price reduction by making large order quantities. In many cases the wholesalers own the physical distribution part, including warehouses and transport capacity, which is often dedicated to specific types of products. Again, this is prevalent in food retailing with companies such as Brakes providing this type of service to smaller caterers, restaurants and so on. Third-party distribution companies have started to create specific channel structures. Often these types of service providers specialize in a particular market segment or product (such as glass or garments) that require specific assets for handling the product. A less used channel structure is one that uses brokers as an intermediary, and may only be a trading channel with no influence on the actual physical distribution structure, and while this may seem similar to the wholesaler structure the company only maintains a marketing/trading function.
Introduction
Published in R. David Whitby, Lubricant Marketing, Selling, and Key Account Management, 2023
Wholesale markets are where products (but not services) are sold in bulk quantities to retailers. A wholesaler sells goods to businesses, which then sell them on to numerous retailers. It is worth noting here that the lubricants business does not generally involve wholesalers. Industrial markets comprise organisations that acquire goods and services, not for their own sake, but to facilitate the supply of other goods and services which ultimately may be bought by retail consumers. This is the b2b side of the marketing and selling process.
How We Got Here: From the General Store to Omni-Channel Retail
Published in Paul Myerson, Omni-Channel Retail and the Supply Chain, 2020
A wholesaler, on the other hand, is a business that buys large quantities of goods from various producers or vendors, stores them, and resells them to retailers. Wholesalers who carry only non-competing goods or lines are called distributors.
Tax-subsidy or reward-penalty? Determining optimal strategy in sustainable closed-loop supply chain under quality-dependent return
Published in International Journal of Systems Science: Operations & Logistics, 2023
Chirantan Mondal, Bibhas C. Giri
If the investment cost in improving product quality or environmental quality or collecting used products becomes much higher, the appropriate channel entity has no choice but to curtail its decisions. So, the product quality, the environment quality, and the collection rate of used products decrease. A higher investment may cause a loss which enforces the manufacturer and the retailer to increase their pricing decisions. It is interesting to note that although the quality investment cost of the manufacturer and used products collection investment cost of the TPC increase the pricing decisions of the manufacturer and the retailer, the environmental investment cost decreases those decisions. This is because, when environmental quality deteriorates, the producer may attempt to improve its corporate image by lowering the wholesale price. A lower wholesale price allows the retailer to sell the product at a lower selling price.
Economic order quantity models with upstream partial trade credit and downstream full trade credit
Published in Journal of Industrial and Production Engineering, 2018
During the past few years, the effects of the optimal replenishment decisions under two levels of trade credit policy linked to ordering quantity have been taken into consideration. Generally, wholesalers purchase goods or products in large quantities from manufactures. And then, retailers also buy goods or products in large quantities from wholesalers. According to the transaction situations of trade credit, the supplier is always willing to provide the customer with either quantity discounts or trade credit. From the wholesaler’s standpoint, how to set the credit period and a minimum quantity become crucial issues. Several studies have considered this topic that trade credit depends on the ordering quantity. As is reported by Teng [25], Annadurai [26], Chen et al. [7], Teng et al. [27]; just to name a few recent works.
Game-theoretic analyses of strategic pricing decision problems in supply chains
Published in IISE Transactions, 2020
Feimin Zhong, Zhongbao Zhou, Mingming Leng
In reality, wholesale price negotiation is common. Nonetheless, we cannot conclude that the supplier always prefers to adopt the negotiation process for his wholesale price. Accordingly, in this section, we allows the supplier to choose between his non-cooperative and cooperative strategies.