Case Study: Wholesalers Provide Value In The Supply Chain

Question #1: Wholesalers provide value in the supply chain to producers, manufacturers, and customers by building warehouses in specific regions, taking ownership of the goods and distributing those goods. They have the ability to store nonperishable goods removing the burden of storage from the producers and manufacturers. The wholesaler can also purchase a large amount of products from the producers/manufacturers so that retailers can have access to them when needed. Producers and manufacturers also benefit from the distribution abilities of wholesalers. United stationers supply stationery products to big box retailers as well as smaller shops, so that they can have access to low volumes of products. Other wholesalers include: Display
They are responsible for selling products to the consumer and the y are also central to providing feedback from customers back to the producers and manufacturers. In order to do this, retailers must first determine the kinds of products that it wishes to sell and the size of the selection to offer its customers. Category managers are responsible for maintaining profitable inventory. If a product is not profitable, the category manager will drop it. For example, a store may remove high-cost low-overhead products such as electronics, or poor performing sellers from its shelves. The removal of these products would then be communicated to the manufacturers. Retailers may also add additional services, like gift-wrapping, alternation, delivery and installation. For example, you can buy a washing machine at BestBuy and have it delivered and installed the next day. Retailers also add value by managing promotional strategies to shoppers. Whole Foods Markets hold educational seminars and provide free
Then, several sources are used to gain customers. This could be anything from friends or previous customers of the company to using the Internet, computerized databases or tradeshows. The second step in the personal selling process is approaching, or making the first contact, with the customer. The more information the firm has, the better. So, strategies such as pre-call planning, and understanding the customers’ level of expertise is important. The third step is a well-organized, clear and concise presentation. This is where the information about the products major features, benefits, strengths and other customers’ successes are pointed out. Successful presentations may lead to the fourth step, the demonstration. The customer may get a chance to see how well the product works before the final purchase. Many new salespeople are afraid of objections, but handling them is the fifth step in the personal selling process. However, objects should not be seen as negative. Customers are in fact giving you a chance to overcome their doubts about the price, features, durability, etc. of the product. Successful handling of objections can move to the sixth stage, or the closing. A successful close involves a purchase after the sales person asks the customer for an order. Even if the close does not happen the first time, it may happen at a later