Statistics and facts on Wholesale
The global wholesaling market refers to the management and transfer of goods in a distribution chain from manufacturer to retailer. Wholesale distributors sell or orchestrate sale or purchase of goods between wholesalers or the sale of goods by wholesalers to retailers, and non-consumer goods in the form of material used in production. Other industry actors include logistics
, warehousing and transportation organizations.
The wholesaling industry thrives due to manufacturers or customers superior supply chain functions performance compared with that of manufacturers or customers. Wholesaler-distributors facilitate service consistency, the meeting of customer demands and are necessary for local presence and flexibility. Wholesale distribution represents the largest channel to market for manufacturers and the most valuable supply chain for customers, especially in the case of multiple smaller customers and an array of manufacturers.
Merchant wholesalers are the leading type of wholesale firm, and represent the main distribution channel for most goods apart from motor vehicles and parts. Merchant wholesalers, who take ownership of products prior to distribution, are divided into subcategories, including importer and exporters, co-operative buying associations, industrial distributors, and farm products marketing cooperatives. Other merchant wholesaler types include voluntary group wholesalers, assemblers, industrial distributors, terminal elevators, retailer cooperative warehouses, cash-and-carry wholesalers and drop shippers.
Technology plays a central role in the wholesale-distribution sector, particularly with regard to limiting low value-added labor activities, including inventory control, warehouse management, billing and delivery-route scheduling. Hardware technology development is equally important to the industry, and sensor technology is expected to pave the way in affording better localization visibility of goods and equipment.