Retailers, Wholesalers and Distributors

Lagos State Employment Trust Fund

7 Jun 201701:37

Summary

TLDRThe video script explains the importance of an efficient supply chain in moving products from manufacturers to customers. It details the roles of manufacturers, distributors, wholesalers, and retailers in this process. The script uses the example of the Indomi brand to illustrate how products are distributed and sold through various channels. It encourages business owners to identify their role in the supply chain and equip themselves with the necessary resources to excel in their chosen segment.

Takeaways

🔄 A supply chain is a system that moves products from manufacturers to customers efficiently.
🏭 Manufacturers are the starting point of the supply chain, creating the products that will be distributed.
📦 Distributors buy products from manufacturers, store them, and sell to wholesalers.
🛍️ Wholesalers act as intermediaries, purchasing in bulk and selling to retailers rather than directly to customers.
🛒 Retailers are the final link in the supply chain, selling goods directly to consumers.
📍 Retailers often operate in locations close to customers for convenience.
🔑 A functional supply chain is crucial for meeting customer demand and distributing products efficiently.
📈 Distributors and wholesalers typically sell products from a few manufacturers, sometimes just one.
📦 The example of Indomi brand illustrates a supply chain with Duil Prime Foods PLC as the manufacturer, Multipro Enterprises Limited for distribution, and wholesalers and retailers for the final sale.
🛒 Wholesalers in large markets sell in bulk, such as in cartons, to retailers.
🛍️ Retailers like Shopright sell products from several manufacturers, including Indomi, to customers.
💼 Business owners should identify their role in the supply chain based on their capital or goals and equip themselves with the necessary resources to excel.

Q & A

What is a supply chain?
-A supply chain is the system involved in moving a product or service from the manufacturer to the customer, consisting of manufacturers, distributors, wholesalers, and retailers.
Why is an efficient supply chain important?
-An efficient supply chain is crucial as it helps manufacturers distribute their products efficiently to meet customer demand.
What is the role of a distributor in the supply chain?
-A distributor buys products or product lines from manufacturers, warehouses them, and resells them to wholesalers.
What is the function of a wholesaler in the supply chain?
-A wholesaler is an intermediary that buys goods in bulk and sells to retailers rather than directly to customers.
Who are the retailers in the supply chain and what do they do?
-Retailers are the end of the channel in the supply chain; they sell goods or commodities directly to customers, often operating in locations close to the customers.
How do distributors and wholesalers typically source their products?
-Distributors and wholesalers usually sell products from a few manufacturers, with some specializing in selling products from just one manufacturer.
Can you give an example of a brand and its supply chain?
-Indomi is an example of a brand manufactured by Duil Primer Foods PLC, with its distribution managed by Multipro Enterprises Limited and sold to wholesalers who then sell to retailers.
What is unique about the way wholesalers sell Indomi?
-Indomi wholesalers, typically found in large markets, sell the product in cartons rather than individual packs.
What is the significance of the retailers like Shopright in the supply chain?
-Retailers like Shopright are significant as they are where customers walk in to purchase packs of Indomi directly.
As a business owner, how can one identify their role in the supply chain?
-A business owner can identify their role in the supply chain based on their capital or goals and equip themselves with the necessary resources to excel in that role.
Who developed the content in the script?
-The content was developed for the Lego State Employment Trust Fund by DIY Law.

Outlines

00:00

🔄 Understanding the Supply Chain Process

This paragraph explains the concept of a supply chain, which is a system for moving products from manufacturers to customers. It involves various entities such as manufacturers, distributors, wholesalers, and retailers. The paragraph uses the example of the 'Indomi' brand, manufactured by Duil Primer Foods PLC, to illustrate how a supply chain functions. It highlights the roles of each entity, from the manufacturer creating the product to the retailer selling it directly to the consumer. The paragraph also advises business owners to identify their role in the supply chain and prepare accordingly with the necessary resources. The content was developed for the Lego State Employment Trust Fund by DIY Law.

Mindmap

Keywords

💡Supply Chain

A supply chain is the network of organizations, people, activities, information, and resources involved in moving a product or service from the manufacturer to the end customer. It encompasses the entire process from the sourcing of raw materials to the delivery of the final product. In the video, the supply chain is central to the theme as it discusses how products move from manufacturers to customers, highlighting the importance of an efficient supply chain for meeting customer demand.

💡Manufacturers

Manufacturers are companies that produce goods or create products. They are the starting point of the supply chain, responsible for the creation of the products that will eventually reach the end consumers. In the context of the video, manufacturers like Duil Prime Foods PLC are mentioned as the originators of products such as the Indomi brand.

💡Distributors

Distributors are intermediaries in the supply chain that purchase products from manufacturers and then sell them to retailers or directly to consumers. They often handle the warehousing and sometimes the transportation of goods. In the video, MultiPro Enterprises Limited is cited as the distributor for the Indomi brand, emphasizing their role in managing the product's distribution.

💡Wholesalers

Wholesalers are businesses that sell goods to retailers rather than to the end consumer. They typically buy products in bulk and sell them in smaller quantities to retailers. The video mentions that wholesalers found in large markets sell Indomi in cartons, indicating their role as intermediaries between distributors and retailers.

💡Retailers

Retailers are the businesses that sell goods or services directly to the end consumer. They are the final link in the supply chain and are often located close to the customers they serve. The video uses ShopRight as an example of a retailer, illustrating where customers can purchase Indomi directly.

💡Efficient Distribution

Efficient distribution refers to the process of getting products from the manufacturer to the end consumer in the most cost-effective and timely manner. The video emphasizes the importance of an efficient supply chain for manufacturers to meet customer demand, suggesting that a well-functioning distribution system is crucial for business success.

💡Product Lines

A product line refers to a group of products that are closely related and满足 similar consumer needs or wants. Distributors often handle multiple product lines from various manufacturers. In the video, the concept is mentioned in relation to how distributors manage and sell different products to wholesalers.

💡Intermediary Entity

An intermediary entity is a business that operates between the manufacturer and the end consumer, facilitating the flow of goods. Wholesalers and distributors are examples of intermediary entities in the supply chain. The video discusses how wholesalers act as intermediaries, buying from distributors and selling to retailers.

💡Capital

Capital refers to the financial resources available for a business to operate, including money, property, and other assets. The video suggests that business owners should consider their capital when deciding which role to play in the supply chain, as it will influence the resources they can allocate to their operations.

💡Resources

Resources in the context of the video refer to the assets, including financial, human, and physical, that a business needs to excel in its role within the supply chain. The video advises business owners to equip themselves with the necessary resources to succeed in their chosen supply chain role.

💡DIY Law

DIY Law is the organization credited with developing the content for the video. While not a core concept of the supply chain, it is important as it provides context about the source of the information presented in the video.

Highlights

A supply chain is essential for efficiently moving products from manufacturers to customers.

It consists of manufacturers, distributors, wholesalers, and retailers.

A functional supply chain meets customer demand by distributing products efficiently.

Distributors buy products from manufacturers, warehouse them, and resell to wholesalers.

Wholesalers act as intermediaries, buying in bulk and selling to retailers, not directly to customers.

Retailers are the final link in the supply chain, selling goods directly to customers.

Retailers often operate close to customers and sell products from multiple manufacturers.

Distributors and wholesalers typically sell products from a few manufacturers, some from just one.

Indomi brand is manufactured by Duil Primer Foods PLC and distributed by Multipro Enterprises Limited.

Wholesalers of Indomi are found in large markets and sell in cartons to retailers.

Retailers like Shopright sell Indomi to customers in packs.

Business owners should identify their role in the supply chain based on capital or goals.

Equipping oneself with resources is crucial for excelling in the chosen supply chain role.

The content was developed for the Lego State Employment Trust Fund by DIY Law.

Understanding the supply chain components is key to effective business operations.

Supply chain efficiency is vital for meeting customer demand and satisfaction.

The role of intermediaries in the supply chain is to facilitate product movement to the end consumer.

Retailers play a crucial role in the supply chain by providing access to products for the end consumer.

Supply chain management involves coordinating the activities of manufacturers, distributors, wholesalers, and retailers.

Business owners must understand the dynamics of the supply chain to make informed decisions.