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Discuss five effects of eliminating a wholesaler from the chain of Distribution.

Discuss five effects of eliminating a wholesaler from the chain of Distribution.

Answers

gideon
i. Cost of distribution may reduce and the benefits passed over to the consumers.
ii. Cost of distribution may increase due to transport and the burden may be passed to the
consumers.
iii. The consumers may fail to receive the goods into place of their conveniences due to lack of
breaking the bulk.
iv. Manufacturer may fail to get the information of market trend.
v. Manufacturer may be forced to store the goods by themselves passing the burden to
consumers.
vi. Manufacturer may be faced with finance deficit as there will be no traders purchasing goods in
bulk.
vii. Consumers may be unable to get credit facilities which are offered by intermediaries .
viii. Manufacturer may be forced to advice the consumer on the usage of goods.
gideon1 answered the question on November 2, 2017 at 06:18

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