
2 minute read
The value of a wholesaler
Tna suPPr Y cHntN lbr lumber and I building materiuls cun be long and complex, with many variables.
Think about it. The production process alone includes tirnber, lumber production, transportation, secondary manufacturing. distribution, retail, and installation. That doesn't even include the supporting services such as credit, inventory, taxes, regulatory compliance, and marketing. Making sure a product finds a market can be daunting. Wholesale lumber distributors play a vital role providing suppliers and users the value everyone needs to succeed.
As the central link of the supply chain. wholesale distributors have a part in supply meeting demand. In today's fast-moving economy. wholesalers can help lower procurement costs, broaden product selection, and add value to products.
The last f'ew decades have seen a significant shift to just-in-time delivery of products becoming the industry standard. Each company has to run Ican to even consider making a profit. Wholesale distributors offer this ability in quantities ranging from multiple rail cars down to individual pieces. By working with a wholesaler, a buyer can have l'aster invenlory turnover to lower costs and free up much necdcd cash fbr further investment.
A major benefit of wholesale distribution is the wide product selection that a buyer would otherwise have to receive from multiple sources. Instead, it can be done with one-stop shopping. Because wholesalers are buying from many different producers, buyers can tailor their products and species to the needs of their clients at a much lower cost.
In addition to offering a wide range of products, wholesalers can also provide unique value-added services, such as packaging, remanufacturing, and treatments. Buyers can often receive innovative product training and services to help sell products.
Wholesalers don't just bring value to the buyer; they also can help a producer succeed. Manufacturers often have to spend years establishing new distribution networks or adapting existing ones. Wholesalers have a long history of knowing buyers and the markets. By working with a wholesale distributor, a producer can focus on its core business model.
As n iche markets increase in importance and profitability, producers and suppliers need expertise and experience to create customization, branding, and marketing for products. Wholesalers can often remanufacture a product in response to market changes and also have experience in creating promotional campaigns.
Wholesalers function as a crucial link between the manufacturer and the retailer, adding value along the supply chain. They can help ensure that the right product meets the right market at the risht time.
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