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Monday 7 October 2013

Stainless Steel Distributor And Their Associated Gains


By Rhea Solomon


A market is the platform that allows buying and selling of goods and services to take place. The question however is, who makes the goods and services to be sold available in the market? These goods do not come from the moon since there are many stainless steel distributor parties involved in distributing them to the final user.

Producers are the origin of the goods so produced to be distributed. They are the ones that have the raw materials which they combine with other factors of production. Not all goods from the producers will need to go through the hands of the intermediaries. Goods like flowers and fruits are perishable hence need to be distributed directly to the final customer.

From the producers, the goods can undergo processing if they are raw materials for other business firm. If it is a case of further processing, manufacturers come in into the chain of distribution. Wholesalers therefore can receive goods from either the manufacturers or producers. Wholesalers are large businesses involved in delivery of goods to the final customer and they will receive these goods in economies of scale.

The chain is not complete yet as wholesalers are limited in number hence they will not manage to reach the entire market. They have to use the common retailers which are small businesses all over every economy. The wholesalers offer some services before they distribute the goods to the retailers. Some of the services include storage of the goods since they own large warehouses and they also break the bulk of the goods they buy in economies of scale.

The parties that are involved in the chain of distribution are majorly the wholesalers and the retailers. They act as the middlemen to avail goods and services to the final customer. Therefore the chain will have goods moving from the wholesalers to the retailers although it all starts from the producer of the goods. Where the producers make raw materials for processing industries, it will require the goods to pass through the manufacturers before going to the wholesalers.

Retailers take it from there. Retailers are the common businesses in the society. Examples include malls, supermarkets, departmental stores, kiosks, roadside traders, and also itinerant traders. All these take part in reaching the final consumer through the many services they offer. They are in contact with the final customer hence they are responsible for delivering goods and services to them and also at affordable prices.

They are link to retailers. They can therefore get response from the users regarding the product and the information is able to reach the producers or the manufacturers who are able to improve on their production. There is still more from retailers as they give extra services to the consumers. They offer some after sale services like transportation and installation free of charge. Some of the retailing businesses also extend credit facilities to the customers.

The problem however is that the longer the chain of stainless steel distributor and distribution the more the cost which will be a burden to the final user. Nevertheless, this activity is of more good than harm. This is not to forget that the economy also grows through the commercial activities that take place. We should therefore salute to the intermediaries who make everything possible.




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