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The term supply chain management and supply chain are quite common. So much so they are now offering complete degrees on supply chain management. Candidates are willingly opting this option to survive in the market, moreover this supply chain or management of supply chain applies on every business. Be it normal FMCG Company or any other manufacturing entity, the basic rule of supply and demand apply here as well. Anyways before getting into economics terms and jargons, we would like to shed some light on demand and supply not as a concept but two physical entities. Two most important positions in any business are wholesaler and retailer; so consider retailer as a demand and wholesaler as a supplier. Here we will consider the example of cloth wholesaling and retailing.
To understand things better, we must know who is a wholesaler and who is a retailer? A fashion wholesalers Adelaide is somebody who has the stuff in bulk, means he/she has enough material which can be supplied ahead for further work in progress thing, wholesaler is somebody who is actually the supplier of the readymade stuff and the raw material too (raw material includes: raw cloth, threads, buttons and everything else necessary to make an apparel), whereas it depends on the setup if the retailer wants to get the readymade clothing or raw material. Usually in marketing term the relationship between a retailer and a wholesaler is known as B2B (business to business), because no direct consumer is involved in this regard. Whereas on the retailer side things are B2C (business to consumer), as the consumer involvement is there… ok so this brings us to the other side of the business i.e. retailers we all have seen that fancy apparel outlet; all those clothes outlet can be labelled as retailers (from where the actual demand process initiated, by consumer and by the retailer itself).
Functions are also defined and segregated among both sections, wholesaler usually doesn’t look after the packaging and after sales issues these functions are under the domain of a retailer. The retailer deals usually with the distribution, promotion and distribution channels (since it has already been mentioned that retailer is a B2C thing) business to consumer relations are handled solely by the retailers and not by the wholesalers. Whereas all the supplies details are done single handedly by wholesalers. There can be more than one wholesaler of a retailer and there can be more than one retailer for a wholesaler. The truth is as compared to the wholesaler, retailers have to take good care of their physical appearances in order to make the stores attractive and catchy as it really impacts the brand image. Although there are now online stores, still the role of a wholesaler is necessary as they must be getting the clothes supply from somewhere and that somewhere is the “Wholesaler”.