Understanding Wholesale Supply Chains

Managing your supply chain is a crucial part of running a successful wholesale operation. Stripping away all of the business jargon, in essence, this just involves building and maintaining a good relationship with every organisation that supplies or serves you, or receives goods or services from you.

So, depending on your business, this could involve a lot of different direct and indirect products and services.

Let's break down the elements that make up a typical wholesale supply chain:

Manufacturers supply the stock needed to create your products, or supply finished products for onward wholesale resale.

Wholesalers and Distributors transport products from manufacturers to end customers, and sometimes also act as manufacturers themselves.

End Customers are the people or organisations that will purchase the finished product. For wholesalers, these are usually retail businesses.

Warehouses store inventory, which can either be components for manufacture, or finished products that are sold to end customers.

Transportation and Logistics businesses bring supplies to you and move products to your customers.

Further Reading:
How To Build Strong Supply Chain Relationships
4 Ways To Get Bigger Orders From Your Wholesale Customers
Combatting Stock Control Problems
Getting The Best From Your Wholesale Customers

photo credit: Elco van Staveren (license)