WHOLESALE DISTRIBUTION

The wholesale distribution industry has been an integral part of the U.S. and global economy, and although suppliers and manufacturers are always attempting to disintermediate the channel, there is in many cases value created for the upstream buyers.  So the channel’s existence continues to remain, although not without competitive threats.   Some examples of how wholesale distributors can add value include:

• Adding value to a product from its original form

• Bundling the product w/ other complimentary products and services

• Making the product or service available in smaller quantities

• Consolidation of mixed orders

• Sourcing hard-to-find products and making them available

• Adding further processing that adds value to the next customer in the food chain

• Streamlining and tracking the flow of goods across the supply chain through the use of technology

Many manufacturers across industries have attempted and in many cases have been successful at going direct with the end customer, so the makeup of the traditional wholesaler has, and will continue to change.  Their roles have in many cases, become more consultative in nature, requiring an understanding the customer’s needs, versus answering basic questions about product knowledge and in communicating the idiosyncrasies of wholesale pricing structures.

The wholesale distributors of tomorrow will have to continue to redefine their role in the value chain and in many cases utilize and leverage technology or other alternative distribution models to make their products more readily available, in a low-cost manner and through a more streamlined customer experience.  They’ll also have to automate repetitive back office transactions relative to purchasing, product availability, pricing/product tracking, and shipping in order to remain competitive and be relevant within their industry’s value chain. 

Point Management Group helps wholesale distribution companies re-invent their business models to compete in the global marketplace and ensure that there is a direct link between their business strategy and its operational execution.