Executive Briefings

The Value to Be Found in the Wholesale Distributor

Recently, several wholesale distribution industry groups published data showing mostly steady growth in the last decade for their members in such verticals as auto parts, health and beauty, furniture, industrial, and food. In fact, many have outperformed other sectors of the U.S. economy, and this year and next are no different.

Once considered the "middlemen," wholesale distributors (WSD) have emerged as innovative and an essential part of the global economy.  One of the facts about the WSD market is that often they don't require as much capital outlay to launch as manufacturers or retailers do. So they can provide a presence in geographies where their suppliers can't go. However, they do need product expertise. And they do need expertise in the terrains and customers they serve. That lower capital outlay does not necessarily translate to profits, since as the "middleman" they are expected to help reduce supply chain costs"”not add to them. This is foundational.

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Keywords: transportation management, WSD market, wholesale distribution services, product distribution, logistics & supply chain, logistics services

Once considered the "middlemen," wholesale distributors (WSD) have emerged as innovative and an essential part of the global economy.  One of the facts about the WSD market is that often they don't require as much capital outlay to launch as manufacturers or retailers do. So they can provide a presence in geographies where their suppliers can't go. However, they do need product expertise. And they do need expertise in the terrains and customers they serve. That lower capital outlay does not necessarily translate to profits, since as the "middleman" they are expected to help reduce supply chain costs"”not add to them. This is foundational.

Read Full Article


Keywords: transportation management, WSD market, wholesale distribution services, product distribution, logistics & supply chain, logistics services