Retailers, Wholesalers and Distributors

Summary

The 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.