266 CHAPTER 10 CHANNELCONCEPTS:DISTRIBUTINGTHEPRODUCT

TABLE10.1 TvpesofModernWholesalers

Typa

Full-servicemerchandise

wholesaler

Limited-servicemerchant

wholesalers

Agentsandbrokers

Manufacturer'ssales

Facilitator

Definition

Taketitletothemerchandise andassume

theriskinvolvedinanindependent

operation;buyandresellproducts;offera

completerangeofservices.

Taketitletoth e merchandiseandassume

theriskinvolvedinanindependent

operation;buyandresellproducts;offera

limitedrangeofservices.

Donottaketitletothemerchandise;b ring

buyersandsellerstogetherandnegotiate

thetermsofthetransaction:agents

merchantsrepresenteitherthebuyeror

seller,usuallyonapermanentbasis;

brokersbringpartiestogetherona

temporarybasis,

Owneddirectlybythemanufacturers;

performswholesalingfunctionsforthe

manufacturer,

Performsomespecializedfunctionssuch

asfinanceorwarehousing;tofa cilitatethe

wholesaletransactions;maybe

independentorownedbyproduceror

buyer.

Subcategories

• General


• Limited-line


• Cash andcar,y


• Rackjobbers


• Dropsr.i ppers


• Mai lorde,-s

Agents

• Buyingagents


• Selling agents


• Commissionmerchants

  
  

  'Manufacturers'age"lts
  Brokers

  
  

  
  


• Realestate


• Fooe


• Otherproducts


• Warehouses


• Financecor:lpanies


• Transportationcompanies
  . Trademarts

:!1puts Management PhysicalDistribution Output

Activities Activities

Materialhandling

)

Procurement

Land

r

oot09

)

Packaging

{nm,'lmty

) r

pPt

''' )

Facilities Traffic&transportation

Equipment Coordination Warehousing/storage Placeutility For Vendors

Personnel Orderprocessing

Technology Control Inventorycontrol Possessionutility Customers

Finance Parts&servicesupport

Retumgoodshandling

Plant&warehousesiteselection

Products

Rawmaterials

In-process

Finished

Replacements

FIGURE10.5 Thephysicaldistributionmanagementprocess