ABSTRACT
Chapter 7 focuses on wholesaling. The chapter begins with an explanation of the difference between wholesalers and distributors and defines how an independent wholesaler-distributor adds value and explains the importance of this sector. It discusses master wholesalers and other participants in the supply chain process including third-party logistics providers, manufacturers’ sales branches, and agents. The chapter provides a brief historical perspective on wholesaling and outlines various wholesaler value-added strategies. It also details the mechanisms by which channel members join federations or alliances that offer exceptional services while cutting costs. Topics covered include cooperatives, B2B online exchanges, online reverse auctions, and blockchain technologies. Various trends in wholesaling are discussed including consolidation and manufacturers’ possible responses to a consolidation wave. The chapter describes how wholesaling is being altered by the omni-channel phenomenon and explains why the future for wholesaler-distributors is optimistic.
