Umesh is dealing in goods on large scale. He buys the goods directly from the manufacturing in bulk and supply the same to the Shops in the local area. He is not dealing with the customers .directly. He even provides financial support to manufacturer. by providing advance while placuhg 9rdcr. Umesh acts as a middlemen between the manufacturer and the shopkeepers. Umesh maintain huge quantity of stock, due to Which he has to maintain large amount of capital.
(a) Which type of business Umesh is dealing in?
(b) Name the parties between which Umesh ts acting as an Intermediary.
(c) Discuss the services rendered by Umesh to manufactures.
Answers
(a) Umesh is dealing in wholesale business, where he buys goods in bulk directly from the manufacturer and supplies them to local shops.
(b) Umesh is acting as an intermediary between the manufacturer and the local shopkeepers.
(c) The services rendered by Umesh to manufacturers are:
Providing financial support: Umesh provides advance payments to the manufacturers, which helps them to meet their production expenses and manage their cash flow.
Bulk orders: As a wholesale dealer, Umesh places large orders with the manufacturers, which helps them to increase their sales volume and reduce the cost of production.
Market reach: Umesh has a strong network of local shopkeepers, which helps the manufacturers to reach a wider customer base and expand their business.
Inventory management: Umesh maintains a large stock of goods, which helps the manufacturers to manage their inventory efficiently and reduce the cost of warehousing.
Overall, Umesh plays a crucial role in the supply chain by bridging the gap between manufacturers and local shopkeepers, thereby contributing to the growth of both parties.