September 12, 2018 169
September 12, 2018 169
Types of Wholesalers
Wholesalers can be divided into two broad categories:
1. Full Function Wholesalers
The function wholesalers perform all the marketing functions. They carry a variety of products. However, there are some that carry only specialized items.
The main ones are:
2. Limited Function Wholesalers
They are merchant wholesalers in that they take title to the goods they handle. They, however, do not perform all the wholesaling functions on these goods. They also tend to concentrate on the handling of few product lines.
The main ones include:
This is the most important asset of a wholesaler. In fact, the wholesaler organization is structured along its warehouse operations. The warehouses are usually facilities designed to store and move goods. Warehouses are usually located at the ports or transportation nodes or junctions.
The major warehouses in most of the developing countries are usually located around big cities. These cities are either sea, air or river ports, or railway junctions and terminals.
Types of Warehouses
There are two major types of warehouses. There are also three other forms or specialized warehouses that offer special services.
The major types of warehouses are the followings:
1. Public Warehouses
These are business organizations that provide storage and related physical distribution facilities on a rental basis to other businesses. They can be owned by an individual or corporation. They are usually located by the sea or river ports, railway stations, and airports.
Public warehouses provide other services apart from storage such as reshipment of goods, financing, display of products, and filling orders. They may even provide security for their agents’ products. They may also establish warehouses for some clients in their inventory locations. These are referred to as field warehouses. They can provide bonded storage. This is the provision of temporary storage for goods that have not been cleared by the customs authorities for entry into the economy until the owner are ready to clear them.
2. Private Warehouses
These are owned and managed by individuals, private or public corporations as part of their own businesses. They are usually regarded as part of physical distribution costs. They may also be established as complete profit centers depending on the number of goods that the company wishes to handle by itself.
3. Other Forms of Warehouses or Specialized Warehouses
There are three forms of this type of warehouses:
Organizational Structure of Wholesalers Warehouse
A wholesaler’s organizational structure is usually patterned in conformity with the efficient management of its warehousing.
The main divisions of a warehouse organizational structure are as follows:
1. Warehouse Operations
This division is responsible for the maintenance of the store. This section is responsible for purchases and for storing all the wholesaler’s items. It is responsible for the inventory control of the company’s stock. The division is also in charge of transportation and responsible for the delivery of items to retailers.
2. Secretary Administrative Division
This division deals with all correspondences of the organization. It is responsible for the management of all staff and overseeing the staff welfare and the finances of the organization. It is to maintain the security and the cleanliness of the organization. The section may also run the restaurant for the workers if there is one in the organizational setup.
3. Publicity and Promotion Division
The division is responsible for the promotion of the company’s products. it is responsible for developing the catalogs and the price lists for the company’s products. it arranges for demonstration and provides samples and set up all the window displays. It advertises the company’s products on billboards and liaises with the advertising agencies and selects the company’s advertising media like magazines and trade journals to promote all the company’s products.
4. Commodity or Product Division
This division has buyers who are in charge of product groups. The buyers are experts in the product groups that they manage. They maintain producer’s lists. They are assisted by travelers who go round the customers to sell to them and salesmen who man the office sales. Anytime the buyers require more goods to be bought they make a requisition to the warehouse operation managers who are responsible for the purchases and the maintenance of inventories in the stories.
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