lOMoARcPSD| 49670689 8/29/2024 1 LEARNING OBJECTIVE
 Distinguish between three broad categories of institutions that constitute the Wholesaling Sector.
 Define how an independent wholesaler-distributor adds value and
explain why this sector growing.
 Detail the mechanisms by which channel members join federations or
alliances that offer exceptional services while cutting costs.
 Identify the major distinctions between a wholesaler voluntary group and
a dealer cooperative , and relate this distribution to the value they provide members
 Describe how wholesaling is being altered by electronic.
 Compare sales agents with wholesaler-distributors in the ways that matter to a manufacturer. 1 lOMoARcPSD| 49670689 8/29/2024
1 .WholesalingStructures
2 .WholesalingStrategies
3 .AdaptingtoTrendsinWholesaling Summary
CASESTUDY1:Exporttradingcompanies
CASESTUDY2:AceHardwareCorporation
CASESTUDY3:DirectsellinginFrance 2 3 2 lOMoARcPSD| 49670689 8/29/2024 DEFINITIONS
 Wholesaling ( wholesaletrade,wholesaledistribution)referstobusiness
establishmentsthatdonotsellmanyproductstoultimatehouseholdsor end-users.
 Wholesalebusiness sellphysicalinputsandproductstootherbusiness.
Mainlyprovidingtheservices .
 Wholesaler-distributors areindependentlyownedandoperatedfirms
thatbuyandsellproductsoverwhichtheyclaim ownership.
1 . WHOLESALING STRUCTURES (206 -210) 4 5 3 lOMoARcPSD| 49670689 8/29/2024
In the United , this industry exerts a large, consider figures reported by National
Association of Wholesale-Distributors (NAW,totaling more than 40,000 companies ( www.naw.org/ ). 6 7 4 lOMoARcPSD| 49670689 8/29/2024 8 5 lOMoARcPSD| 49670689 8/29/2024 EXAMPLE IN VIETNAM
https://dailyviet.vn/can-tim-dai-ly?page=2 https://thegioisi.com/
https://nhaphangsieutoc.com https://nhaphangsaigon.com / https://chosionline.vn
http://www.nhaphangquocte.com
https://thitruongsi.com/
https://banbuonsieure.com/ 9
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Master Distributors is a sort of
super wholesaler, only distribute to other distributors
• Consolidate orders from all their manufacturers
• Give distributors economies of scope & scale
• Help distributors resolve their logistic and support problems
• Help manufacturers expand into new channels • “invisible warehouse” 10 7 lOMoARcPSD| 49670689 8/29/2024
OTHER SUPPLY CHAIN PARTICIPANTS 11
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arecomplexandinvolvemultipleparticipants,
intermediaries,andserviceproviders.
In a supply chain, the channel functions and activities that
traditionallyarethefocusofwholesaler-distributors.
Manufacturer’s sales branches are captive wholesaling
operations,ownedandoperatedbymanufacturers.Specially,
manufacturersalsomaintainsalesofficestoperformspecific sellingandmarketing. 12 9 lOMoARcPSD| 49670689 8/29/2024
 Customers: particularlylargeretailfirms ,performwholesale
distributionfunctions.Especiallyinverticalintergratedchannels.
 Agents,brokers,andcommissionagents: Buyorsellproducts
andearncommissionsorfees,takingpartnership.
 Third-partylogisticsproviders(3PL) isthepersonactingon
behalfoftheshippertomanageandperformlogisticsservicesfor eachdepartment.
 The emergence of large, sophisticated, end-to-end logistics
providersremainsakeychallengetowholesaler-distributors. 13
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2 . WHOLESALING STRATEGIES - 14 11 lOMoARcPSD| 49670689 8/29/2024
Wholesalers add value as they perform 9 generic channel functions:   Take physical possession of Ownership.   Process orders. the goods Risk their capital   Handle payments  Promote the product to Negotiate transactions.   Manage information prospective customer. Finance their operation. Upstreamtothesupplier
– downstreamtootherchannelmembers andprospectivecustomer
Earningmoney – surviveandthrivingbyeffectivelyandefficiently EXAMPLE: 15
AN HISTORICAL PERSPECTIVE IN WHOLESALING STRATEGY Thewholesalingsectoris
critical and massive ,yet
remainsinvisibletothebuyer.Bothmanufacturersand
customershaveatroublingtendencytounderestimate
the threegreatchallenges ofwholesaling 12 lOMoARcPSD| 49670689 8/29/2024 16
Doing the job effectively
( maximum service )
Doing the job correctly
Doing the job efficiently (n o errors ).
( low cost ) FROM 1950S
Obey 3 rules of Wholesaler and apply these with
technologies to faster, more correct. 17 13 lOMoARcPSD| 49670689 8/29/2024
WHOLESALINGVALUE-ADDED STRATEGIES
Gather,processanduseinformation frombuyer,productand supplierstotransactions
How to wholesaling value added strategies?
 Creating an EFFICIENT
INFRASTRUCTURE to exploit economies of scope.
 Share ADVANTAGE which were created to customer and supplier.
These helps wholesaling competing with the
manufacturers about price. 18 Thinking of customers
Customersfeel reducingrisk aboutproductsandthey don’t
feeloverload aboutinformation.
Technology: collaborative filtering software 14 lOMoARcPSD| 49670689 8/29/2024 19 For B2B
 Addingon proprietarycomplements ,suchas:hardware andsoftware.
 Designing newproducts fromuniquecombinationsof components.
Creating new and strong advantage from wholesaling 20 15 lOMoARcPSD| 49670689 8/29/2024
WHOLESALINGSTRATEGIESIN FOREIGN MARKET  Using channels function. EXPORT  Building TRADING marketing strategies. COMPANIES  They were employed and serviced to work outside 21
FUNCTION OF EXPORT TRADING COMPANIES
 Outsourcedexportdepartments formultiplemanufacturers.  Searchingmarkets.  Negotiating contracts for performance.
Creating transfer line efficient and effective;  They were trained by the
Having many relationship on around the world. manufacturers – they train
NOTE: what should we do with Export trading customer – givingcustomer companies? after_salesservice.
 Choosing companies with “Flexible distribution  Strategy”. Having knowledges about
 Choosing companies to have “work culture” as us. FOREIGN MARKET & PROCESSOFEXPORT.
As “work culture” = trustworthy = development in finance and brand. 16 lOMoARcPSD| 49670689 8/29/2024 22 17 lOMoARcPSD| 49670689 8/29/2024
WHOLESALINGSTRATEGIESIN EMERGING ECONOMIES
CASESTUDY:WHOLESALINGINNIGER
Consider Niger, a desperately
Accordingn to the team of aid
poor nation in West Africa.
Agency analysis, it was lack of a Wholesaling sector
By the time of wholesaling, the
economic activities of the country
Its harsh natural climate prevent
increased dramatically.Their
most value-added agricultural.
profits appear to be exploitation. Except onions.
But it was vehemently reflected
for exploiting the labor
productivity of the people.
Consider the costs involved in
the following functions that
account for so much of the
onions final market value 23 18 lOMoARcPSD| 49670689 8/29/2024
ALLIANCE-BASED WHOLESALING STRATEGIES
 Thekeytothisextraodinaryfeatappearstobe
federations ofwholesalers
 In federations, the goal is to enter progressive, cooperative
arrangementswithotherchannelmembers, inwhichallelements the
natureofassistance,theproceduresforprovidingit,andtheappropriate
compensation — havebeendefinedinadvance
 The members of the federation eliminate redundant inventory or service operations. 24 19 lOMoARcPSD| 49670689 8/29/2024
Wholesaler-Led Initiatives
 Definition : These alliances exist in almost every industry and can grow quite large.
 Another method for creating an alliance is through a holding company.
Example: Affiliated Distributors the largest distribution alliances in North
America, with more than 370 independent Wholesaler-distributors and $25
billion in aggregate sale in 2012 25 20