WHOLESALING

AND LOGISTICS
 Wholesaling
Wholesaling consists of the sale of
goods/merchandise to retailers, to
industrial, commercial,
institutional, or other professional
business users or to other
wholesalers and related
subordinated services.
Wholesaling, we are talking
about intermediaries and all
activities under taken to
transfer goods from
manufacturer to eng-user.
Wholesaling is an old age
profession.
 Defined
“…..includes all activities
involved in selling good
and services to those who
buy for resale or business
use”.
DIFFERS FROM
RETAIL
 Differs from Retail

• They are not involved in much

in promotion for they deal with
business consumers and not
the common man.
• Wholesale transactions are
usually large in size.
• Government deal differently
with wholesaler and Retailers
in so far laws and regulations
are concerned.
FUNCTIONS OF
WHOLESALERS
Every step that the product
is taking from
manufacturer to end used
is adding cost to the
product.
1- SELLING AND
PROMOTION TO
RETAILERS
2- BUYING AND
ASSORTMENT
3- BULK BREAKING
4- WAREHOUSING
5- TRANSPORTATION
6- FINANCING
7- RISK BEARING
 Wholesaler is very
intelligent, sharp,
perceptive and active.
 8- MARKET
INFORMATION
WHOLESALERS
MARKET TYPES
1- MERCHANT
WHOLESALERS
2- FULL-SERVICE
WHOLESALERS
3- EXCLUSIVE
DISTRIBUTORS
4- BROKERS AND
AGENTS
5- LIMITED-SERVICE
WHOLSALERS
WHOLESALERS
MARKETING
DECISIONS
 Wholesalers Marketing
Decisions
• Target markets
• Product assortments and
services
• Pricing
• Place decision
• Trends & market information
• Ability to Buy

• Willingness to Buy
 According to the United
Nations Statistics Division
“Wholesale is the resale (sale without
transformation) of new and used goods
to retailers, to industrial, commercial,
institutional or professional users, or to
other wholesalers, or involves acting as
an agent or broker in buying
merchandise for, or selling merchandise,
to such persons or companies…
…Wholesalers frequently physically
assemble, sort and grade goods in large
lots, break bulk, repack and redistribute in
smaller lots, for example pharmaceuticals;
store, refrigerate, deliver and install goods,
engage in sales promotion for their
customers and label design."
(UNSTATS - United Nations Statistics
Division)
MARKET LOGISTICS
AND ENGINEERING
 Market logistics and
Engineering

Logistic Engineering deals

with the science of Logistics.
Logistics is about the

• Purchasing,

• Transport,

• Storage,
• Distribution,

• Warehousing of raw
materials, semi-
finished/work-in-process
goods and finished goods.
 Managing all these activities
efficiently and effectively for an
organization is the main
question at the back of the
mind of any logistic engineer.