A wholesaler is one who sells on a large scale of goods which himself has manufactured or which another has manufactured and given to him to sell. He could also be addressed as a merchant.
The wholesale merchant is very necessary even though some deficiencies. Purchases could be made directly to the manufacturer and the grower and the role of the middleman abandoned. Hence the middle man’s profit would be saved and the price to the consumer would be reduced accordingly. Distance from the manufacturers , expense of visiting their works and the usually limited range are some of the difficulties which would have to be met. Most manufacturers will not sell in small quantities and if they did, certain selling expenses would arise, which would not be incurred when selling on large scale. A warehouse can be likened to a departmental store, very varied stock of goods may be inspected and purchased in one house and in small and large quantities.
On a serious note, the wholesale middleman has always been given the credit on the ground that their activities tend to stabilize prices of commodities. For in their own interest to buy when goods are much and prices are low and this expected buying results in a stifling of prices. The other way round, if they consider that the prices are too high, they will defy purchasing and this tend to force prices to a lower level. This system of buying is not however, automatic; and even wholesale prices have been at their lowest, manufacturers have been unable to sell to the wholesale merchants , who have held off, because owing to the reduced spending power of the public, their customers, the retailers, have in their turn been chary in placing orders. Equally when the country is passing through a period of currency inflation and the rising prices, wholesalers buy freely, because they know that the retail trade will be brisk.
Actually, these circumstances as stated above weakens the economic case in favour of the wholesale merchant. Capital is brought into any particular trade by this category of trader spreads the financial
risk and to a great extent relieves the manufacturers in that trade, who might not be equal to
shoulder the whole financial burden incidental to manufacture and distribution combined.
The wholesale warehouse
This a house, a large hall with proper ventilation where goods of all sorts and types are kept while
awaiting dispatch. There are features which must be included and considered before a warehouse can
be set up.
1) Location
2) Planning departments
The location of the warehouse must be very close to large shopping areas, usually near railways, seaports and post offices so that it will be easily accessible to customers.Planning of departments is determined by the nature of the goods and the convenience of the customers.
3) Buying and selling
4) Publicity
5) Warehouse management
6) Commercial
Please note that the features of the retailer and the wholesale merchant are very similar but they differ in importance, according to their significance on the commercial life of consumers.
Buying has to do more with the sources of goods where a buyer choose to buy his or her goods from either home local or foreign. A buyer may have love for foreign apparels, for example, I the writer, have a great love for foreign apparels like THE life apparels, by an American manufacturer, I can choose to buy and stock up a warehouse and nobody has the right to ask me why simply for the sake of business.
Ordering of goods are made according to quantities, receipt of goods of copies of documented record of goods in transaction, returns of goods when goods are found to be faulty, an alert is made and the goods returned and a reduction in the invoice charge is claimed in respect of the shortage, or in the price, if the quantity is inferior. Sale of returns and pro-formula invoice is usually when goods are on transit en route to the receivers, these goods are at the owner's risk until they get to the receivers who are to confirm by communication channels. Within a reasonable time, if these goods are not sold, the senders could charge the receivers. On this reasonable time is determined by the custom of this type of trade in this matter on express of agreement between parties. However, goods sent or returned are followed by a special kind of invoice called the PRO FORMA Invoice.
Ordering of goods are made according to quantities, receipt of goods of copies of documented record of goods in transaction, returns of goods when goods are found to be faulty, an alert is made and the goods returned and a reduction in the invoice charge is claimed in respect of the shortage, or in the price, if the quantity is inferior. Sale of returns and pro-formula invoice is usually when goods are on transit en route to the receivers, these goods are at the owner's risk until they get to the receivers who are to confirm by communication channels. Within a reasonable time, if these goods are not sold, the senders could charge the receivers. On this reasonable time is determined by the custom of this type of trade in this matter on express of agreement between parties. However, goods sent or returned are followed by a special kind of invoice called the PRO FORMA Invoice.
Selling, under the wholesaler warehouse, the selling structure has to be crafted and set to administer and manage goods to be distributed and at the same point, products can be alluring and attracting buyers instantly from outside the warehouse, there could be a merchant who is wandering along the area in search for what goods to invest his/her money into and could come along a warehouse on the point of sales, what next, it is going to business. There are two units of staffs and manpower in a warehouse usually are the indoor and the outdoor staffs. By outdoor, it is understood that these are front liners, they scout and observe, they survey. By indoor, it is understood that they finally meet with the buyers and under their guide, the buyers can have a good direction to actually what and how they want to do their purchasing and supply business. Publicity has to do with the information management and dissemination of goods and services to the retailers and consumers. Some warehouse does have a large bell, whenever there are goods which have been scare, the bell is rung, sending a signal to the wholesalers and retailers, even consumers are made to feel a bit relief.
The Warehouse management.
(1)The Managing Director.
(2)Despatch department.
(3)Sales assembly form.
(4)Remains.
(5)Travellers.
(6)Shipping Department.
(7)Mail order department.
(8)Stock control.
(9)Invoice and order department.
(10)Customers complaints and returns.
(11)Statistical Records.
(12)General management & maintenance
On a more serious note, with the invention of new technological devices, the sorting and tabulating machines in view of the increasing mechanized employment these systems are very advisable, the manufacturer will be glad to get a clear explanation of the kind of supply ordered.
No comments:
Post a Comment