customer, retailer, wholesaler, manufacturer, supplier
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Raw materials that become finished products are an important aspect of a manufacturer’s operation, but the selling process must stay on pace with the production schedule or the manufacturer could end up with too many items. Distributors often place large orders for some items, such as bicycles or infant car seats. The main differences among wholesalers, distributors and retailers are based on the entity’s business model and objectives toward merchandising.
Some business operations may manufacture and sell products on a retail basis directly to consumers. Cutting out parts of the supply chain, like the distributors and wholesalers, can save money and time, but also alienates those entities. It's important, then, to carefully determine which business model to use and why. Using market research, communications skills and established business relationships, wholesalers, distributors and retailers can create strategies for business success.
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