Wholesale trade is one of the important links in the distribution of goods. Wholesale trade is a catalyst for ongoing changes in production and consumption in the face of constantly changing market needs.
Wholesale trade, as a field of activity, is a form of relations between enterprises and organizations in which economic ties for the supply of products are formed by the parties independently. It influences the system of economic relations between regions and industries, determines the routes for the movement of goods in the country, thereby improving the territorial division of labor and achieving proportionality in the development of regions. To rationally distribute the trading environment, wholesale trade must have specific data on the current state and future changes in situations in regional and industry markets.
Based on the scale and nature of their activities, wholesale enterprises at the federal and regional levels are distinguished.
Based on product specialization, wholesale enterprises are divided into specialized and universal.
Based on their location and role in wholesale trade, these enterprises are divided into:
1. enterprises specializing in wholesale trade and acquiring ownership of goods;
2. enterprises that perform the functions of wholesale intermediaries and do not acquire ownership of goods (enterprises - agents, brokerage houses, commodity auctions);
3. enterprises that organize wholesale turnover (commodity exchanges, wholesale food markets, etc.). They themselves are not subjects of wholesale trade activities.
0main tasks wholesale trade are:
· marketing research of the market, supply and demand for goods consumer consumption;
· placement of production of goods in the range, quantity and quality required by the consumer;
· timely, complete and rhythmic provision of goods in a wide range of intermediary, retail enterprises and consumers;
· organization of storage of inventory;
· organization of systematic and rhythmic import and export of goods;
· ensuring consumer priority, increasing its economic impact on the supplier depending on reliability economic ties, quality of supplied products;
· ensuring the stability of partnerships in economic relations, interconnection in all temporary categories (long-term, medium-term, current, operational);
· organizing the systematic delivery of goods from production regions to consumption areas;
· widespread use of economic methods for regulating the entire system of relationships between suppliers, intermediaries, and consumers; reduction of total costs associated with the promotion of goods from manufacturers to consumers.
The reasons for failure to complete the listed tasks are varied and include:
Limited scope commercial activities wholesale enterprises;
Significant reduction in production volumes of domestic goods,
Poorly developed information network,
Absence close ties between commodity producers and trade,
Financial problems of enterprises,
Unstable economic situation in the country, consequences of the crisis.
When locating wholesale enterprises, the shortest routes and the minimum level of product distribution are provided, ensuring maximum speed promotion of goods to the retail trade network, minimal costs for bringing goods to the consumer. When placing, a number of economic and geographical transport factors are taken into account (density of the trading network, location of manufacturing enterprises, use of the most convenient routes of communication).
Wholesale purchases and wholesale sales of goods are the basis of the commercial activities of wholesale firms. The correct and precise organization of the wholesale purchasing process largely determines the timeliness and rhythm of the supply of goods to the retail network and, accordingly, the efficiency of the activities of the wholesale enterprise itself.
The wholesale procurement process consists of the following operations: studying the sources of purchases of goods, studying demand, submitting and coordinating orders for the supply of goods, concluding contracts for the supply of goods, operational planning of wholesale purchases, operational accounting of the fulfillment of supply contracts by suppliers. The main sources of purchases from wholesale enterprises can be: 1) manufacturing enterprises - industrial, agricultural enterprises, farms, local industry, etc.; 2) large wholesale intermediaries; 3) foreign suppliers.
The technological process in warehouses includes: acceptance of goods in terms of quantity and quality, organization of storage, packaging, sub-sorting, repackaging, document processing and release of goods from warehouses. The general diagram of the warehouse technological process is shown in Figure 9.
| Moving to the loading area |
| Loading goods onto a vehicle |
Figure 9. General diagram of the warehouse technological process
Goods are delivered to the warehouses of wholesale enterprises by rail or road transport. The technology of operations for unloading vehicles and the features of acceptance depend on the physical and chemical properties of the unloaded goods, the type of transport packaging, and the type of vehicle.
Acceptance of goods is carried out in accordance with GOSTs, specifications, instructions on the acceptance procedure for quantity and quality, concluded contracts, etc.
Storing goods is one of the most important functions of warehouses. Its implementation is ensured by a system of measures, including: the creation of a storage regime taking into account the physical and chemical properties and characteristics of each product, the development of an optimal layout of goods, the determination of methods for storing individual goods, and ensuring constant monitoring of the quality of goods. Experts in the field of wholesale trade believe that the cost of storing goods is 18-25% annually. Goods stored in a warehouse can become ballast. The greater the volume of goods and the level of their circulation, the greater the opportunities for the success and growth of the enterprise, the stability of its financial position.
When organizing the storage of goods, the following principles should be taken into account:
1. storage of goods depending on their size and weight;
2. storage of goods according to the principle of homogeneity;
3. storage of goods of high consumer demand in active zones; low demand – in reserve zones;
4. separate storage of goods for specific purposes;
5. the principle of commodity neighborhood;
6. FIFO principle (first in, first out).
Important when organizing the storage of goods, it assigns permanent storage places to certain goods and indexes them.
Wholesale sales can be organized by supplying goods from the warehouses of wholesale enterprises or directly from manufacturers with whom the wholesale enterprise has economic relations. In the first case, the turnover is called warehouse turnover, and in the second - transit. Wholesale enterprises can carry out mutual purchases in which goods do not leave the scope of wholesale trade. This type of turnover is called intrasystem turnover.
The choice of the form of wholesale sales is determined by comparison of costs.
Methods of selling goods from a warehouse are: sale on the basis of personal selection, by written and telephone orders, by parcel operations, through traveling sales agents.
When selling on the basis of personal selection, the buyer selects goods from the warehouse. The client first gets acquainted with the assortment and samples of goods available in the warehouse, in assortment rooms and showrooms.
The showroom is the commercial center of a modern wholesale enterprise. It concentrates the main work related to organizing the sale of goods: familiarizing buyers with samples of goods, preparing the relevant documentation for the sale and operational accounting of goods.
The system of personal selection of goods makes the relationship between employees of the wholesale enterprise and representatives of the retail trade more specific and efficient. It allows you to quickly identify the attitude of buyers to the range of goods, their quality and external design, determine trends in changes in demand, take into account their comments and wishes when drawing up orders and when purchasing goods from manufacturers.
For wholesale sales by telephone and written orders, a department for receiving orders is created in a wholesale trading enterprise. This method is used if personal acquaintance with product samples is not required.
Pre-orders by phone, fax, or modem help save customers time and improve their execution. When placing orders by telephone, it is possible to clarify customer requirements regarding the quantity and quality of goods supplied, agree on the replacement of goods, and provide advice on storage and advertising. The sale of goods using this method is carried out for goods of a simple assortment or well-known goods of a complex assortment.
The sales method by parcel operations is used for the supply of small quantities of goods in the shortest possible time. Customers can familiarize themselves with the offered range of goods in catalogs and brochures, which provide characteristics of goods sent by parcels, as well as the terms of payment and ordering procedure. The catalogs include goods that are not subject to storage in the warehouse of the wholesale enterprise. Brochures inform the buyer about the properties, technical characteristics, design features, warranty repairs, methods of use and care of the product.
In wholesale trade, the method of selling goods through traveling sales agents who regularly visit retail outlets in order to familiarize them with the assortment and form orders for the supply of goods is becoming increasingly widespread. Sales agents are provided with albums, catalogs, and brochures for goods in stock. Their activities help generate consumer demand, contribute to changes in consumption patterns, expansion of sales markets, and growth in the profitability of a trading enterprise.
Organization of wholesale sales through traveling sales agents involves the following activities: implementation of the planned sales plan, assigning a certain service territory to each sales agent, monitoring the high-quality and timely fulfillment of orders from their clients, holding promotional events, training and retraining of personnel. The size of the service territory depends on the number of retail trade enterprises, the scale of their activities and the volume of goods purchased.
Wholesale trade enterprises specialize in commercial intermediation in establishing economic relations between manufacturing enterprises and various trading enterprises, as well as in the purchase and sale of goods from warehouses and the provision of related services.
Services have a significant impact on the effectiveness of the process of selling goods in a wholesale trading enterprise.
Wholesale trade services can be used not only by retailers, but also by manufacturers, providers of various services, as well as small wholesalers.
The main services in wholesale trade include:
Production services: sorting of products, packaging in small containers, packaging;
Responsible storage of products;
Transport and forwarding services: delivery of goods from warehouses of wholesale trade enterprises, forwarding services;
Intermediary services: assistance in establishing economic relations, placing orders at enterprises, selling excess, substandard inventory, waste, secondary raw materials; selling products on a commission basis, concluding contracts with transport companies, etc.
Information Services: information about the purpose of the product; information about the method of transportation and storage rules that ensure safety consumer properties; information on product prices, possible discounts, surcharges and conditions under which they may be applied;
Reception and replacement of defective products;
Certification services for purchased and sold products;
Weighing and metrological services.
Analyzing the current state of wholesale trade, the following points can be highlighted:
Large shopping complexes are being created, competition is increasing, profits are decreasing;
Inflation causes an increase in fixed costs /overheads/;
Buyers have a wide range of product choices;
Consumer requirements are changing rapidly and significantly;
Shortage of cash causes a reduction in inventories;
Computer technologies for processing statistical data are used (the profitability of goods is easily determined, costs are analyzed).
All of these difficulties necessitate the need to improve the qualifications of enterprise personnel and comprehensively research and analyze the market situation.
Control questions:
1. Name the essence of the commercial activities of wholesale trading enterprises.
2. List the main tasks of wholesale trade in market conditions.
3. Explain the procedure for making bulk purchases.
4. Name the sources of supply of goods to wholesale trade enterprises.
5. What operations does the warehouse technological process include?
6. Explain the content of the basic principles of storing goods in a warehouse.
7. Describe the methods of selling goods from the warehouses of wholesale trade enterprises.
Wholesale trade as a sub-sector of trade is a large network of enterprises different forms property and departmental affiliation. The long-term goal of the policy for the development of wholesale trade in Ukraine is to ensure market diversity of wholesale structures, which will make it possible to fill the consumer market with goods, create conditions for their unhindered promotion through distribution channels, and the activation of Ukrainian commodity producers.
The classification of wholesale trade enterprises can be based on the scale of their activities, taking into account which it is worth distinguishing wholesale trade enterprises at the national and regional (regional) levels.
Enterprises at the national level are called upon to become the core of the entire intra-industry structure of wholesale trade. They must guarantee its resilience and strategic stability. Their most important task is to create necessary structure tovarukhu channels, designed to serve large Ukrainian commodity producers, as well as foreign manufacturers and suppliers of goods.
Wholesale trade enterprises at the national level sell goods throughout Ukraine. These include enterprises that provide state needs, as well as enterprises of an interregional nature that serve the historical centers of production of metal products, chemicals, goods, light industry, vehicles, agricultural products, winemaking and the like. Taking this into account, the trade range of wholesale trade enterprises of a national scale and interregional nature should be developed.
The process of wholesale sales of goods is completed by wholesale trade enterprises at the regional (regional) level. They purchase goods directly from commodity producers and nationwide wholesalers and distribute them to wholesale buyers in their area of operation. The main task of their functioning is to provide goods to regional commodity markets.
Depending on the form of ownership, wholesale enterprises are divided into:
government;
utilities;
collective;
*enterprises of international organizations and legal entities of other states.
State and municipal enterprises make up less than 1% of the total number of wholesale trade enterprises in Ukraine. The vast majority (98%) are enterprises of collective and private ownership.
Based on territorial characteristics and the nature of their activities, wholesale trade enterprises are divided into:
enterprises located in production areas (source bases);
enterprises located in consumption areas (trade bases).
Source databases are created for the purpose of:
liberation of manufacturing enterprises from connections with numerous wholesale buyers and from forwarding operations from sending goods to areas of consumption;
monitoring the quality of goods supplied from manufacturers;
transformation of the production assortment into a commercial one;
filling, packing and performing other operations, assembling product lots.
Initial bases, as a rule, have railside trains. Trading bases are located in regional centers and other places where consumers are concentrated. They source goods from different production areas, purchase products from local manufacturing plants, and supply goods to retailers.
IN last years the phrase “wholesale base” has almost disappeared from trade terminology. He was replaced a foreign word"distributor", "trading house" or simply "wholesaler". However, there is hope that this word will return to our vocabulary, since it has a very specific and understandable content. At all times, a wholesale base was considered a wholesale trade enterprise that carries out wholesale purchase and sale of goods and has one or more trains for this purpose. Such depots are also called full-service wholesalers.
Based on their specialization, wholesale trade enterprises that sell consumer goods are divided into:
mixed;
universal;
specialized;
highly specialized.
Mixed wholesale trade enterprises sell both food and non-food consumer goods. Universal - a wide range of food or non-food products. Specialized enterprises carry out wholesale trade in one or more product groups that complement each other (for example, televisions and VCRs). Highly specialized - only one product subgroup, for example, ceramic tiles.
Depending on the functions that wholesale trade enterprises perform, they are divided into two types:
full-service enterprises;
enterprises with a limited service cycle.
The full service cycle includes a full range of services that a wholesale trade enterprise provides to its customers, namely: packaging, packaging of goods and other warehouse operations, provision of commodity credit to customers (deferred payment), centralized delivery by its own transport or ATP transport, unloading using mechanized means , removal of containers, containers and pallets, provision of technical information, provision of advertising materials, participation in compatible promotional events, consulting and provision of marketing research results, etc. A limited-service wholesaler provides only some of the listed services to its customers.
In both cases, these enterprises have ownership of the goods because they purchase them with their own or borrowed funds.
Full service businesses
The types of full-service wholesalers are independent wholesaler, distributor, export wholesaler and trading house.
An independent wholesaler is a wholesale business that trades on its own behalf and has ownership of the goods.
He specializes in purchasing goods from manufacturers (wholesalers) at his own expense and independently sells them to customers and clients. According to his specialization, such a reseller may act as:
a) a seller of goods for industrial and technical purposes who serves manufacturers;
b) a seller who sells consumer goods to other wholesalers, retailers and entrepreneurs.
The main functions of an independent wholesaler:
market research, clientele formation;
concluding agreements with both wholesale sellers and wholesale buyers;
storage of goods on own or leased trains;
independent setting of prices for goods, organization of wholesale sales;
An independent wholesaler, in addition to the main activity of purchasing and selling goods, can provide subjects of the commodity market with a full range of services, namely:
Commercial services (intermediary in finding necessary goods, suppliers, wholesale buyers, marketing research, assistance in advertising goods, etc.).
Technological services (packing, sorting, packing, measuring, slicing, cutting; manufacturing of containers, non-standard products; composition of complex equipment and furniture; installation of equipment; setting up, running in, regulation of machines, mechanisms, equipment).
Information and consulting services (providing producers and buyers with scientific, technical, economic, legal, advertising information, as well as product information regarding assortment, quality, operating rules, methods of use; scientific, technical, organizational and legal consulting).
Financial, settlement and credit services (participation in settlements, issuing commercial cash loans to producers and buyers of goods, investing in the production of the most scarce and promising goods).
Rental and rental services (leasing of warehouse, production, office and other space, machinery, equipment; rental of equipment, instruments, tools, containers, containers, lifting and transport machines, mechanisms, vehicles, etc.).
Transport and forwarding services (centralized delivery of goods to the retail trade network and delivery of large-sized goods home to consumers, organization of delivery of individual materials, products, products by special vehicles, receipt of goods from points of departure or destination on behalf of customers, parcel shipping of artificial and small consignments of goods and etc.).
A distributor is a full-service wholesale trade enterprise that trades on its own behalf, has ownership of the goods, but unlike an independent wholesaler, sells goods only in a certain territory agreed upon in an agreement with the supplier.
The relationship between partners is determined by two types of contracts. First, they enter into an agreement granting the right to sell goods of a certain range in a certain territory. Then the supplier and distributor enter into separate purchase and sale agreements, which agree on the quantity, quality of goods, their price, delivery conditions, operating and quality guarantee conditions, forms of payment and settlement, delivery times, claims handling procedures, etc.
A distributor may have the following responsibilities:
organization of a separate structure for storing supplier goods;
delivery of goods to wholesale customers, including to the retail network, is centralized;
demonstration of goods on the train or in the hall of commodity cuts;
participation in the organization of the supplier’s merchandising network;
holding presentations, scientific and technical conferences, etc.
Thus, the distributor is a permanent link in the sales network of the supplier, including the manufacturer. Therefore, he is obliged to adhere to the interests of the supplier and act within the limits of authority in accordance with the agreement on granting the right to sell.
Suppliers (manufacturers) also call distributors independent wholesalers, whose range partly consists of their goods and with whom they have agreements on granting the right to sell.
The consignor wholesaler delivers goods to the consignee and they must be sold within a specified period. By the time goods are sold to third parties, they are the property of the consignor. After the goods are sold from the warehouse, funds for them are transferred to the exporter, and unsold goods are returned to the owner.
This form of relationship with the buyer forces the exporter to carefully formulate its assortment, maintain inventory at an optimal level, and set prices that would not slow down the subsequent promotion of goods to the final consumer.
Wholesale sales through consignment trains are most often used for the purpose of entering new markets, introducing new or little-known products to the market. The consignor wholesaler clearly defines the territory within which the consignor must sell goods. This is done so that other consignors of the same type do not compete with each other and keep prices at the same level.
Since the goods on the train remain the property of the exporter, he has the right to monitor the progress of sales, visit the train, showrooms and other places where goods are stored.
Upon receipt of payment for goods sold, the consignor wholesaler pays the consignor a fee. For the most part, it is defined as a percentage of the cost of the product. In addition to this basic remuneration, additional remuneration may be paid for the number of goods sold in excess of the stipulated norm or at a higher price.
Wholesalers-exporters also successfully sell a wide range of goods using the retail trade network (sale of toys, books, perfumes and cosmetics, etc.). In this case, the consignor is a retail trade enterprise that ensures the storage of the consignor's goods in warehouses and their placement on the sales floor. The wholesaler-exporter, at his own expense, installs commercial equipment for storing goods, provides the retail enterprise with advertising materials, organizes presentation of goods and tastings, and also maintains an optimal level of inventory and variety of assortment.
Trading house. In most Western countries, trading houses specialize in foreign trade operations, financing and lending for the export of goods and services. They have a wide network of foreign branches, representative offices, and subsidiaries.
The largest number of trading houses are in the USA, Canada, Sweden, Switzerland, India, Singapore, Brazil, and Japan. However, their role in each of these countries is different. Yes, according to experts, in Japan the share of trading houses in the total number of trade intermediaries engaged in foreign economic activity is 65-70%, and in the USA it is only 8-10%. Japanese trading houses attract customers with a wide range of goods (20-30 thousand items). Thanks to the versatility and versatility of their product range, they have the ability to quickly move from one product group to another, carry out the most profitable types of operations and select promising markets. High level services, a powerful information base and a global communications network also contribute to the activities of trading houses and their subsequent development.
The purpose of trading houses that operate in countries around the world is foreign trade activities and wholesale trade of imported goods in the domestic market of their country. They purchase goods from manufacturers or wholesalers in their own country and export to other countries; purchase goods abroad and sell them to manufacturers, wholesalers and retailers.
However, trading houses, unlike an ordinary wholesale trade enterprise with a full service cycle, penetrate into the sphere of production and often carry out operations of a production, financial, credit and investment nature. They have not only warehouse and transport facilities, but also production facilities and their own retail network.
The main, most typical functions of trading houses include:
intermediary activities in the field of foreign economic activity;
export - import of goods (on one’s own behalf and at one’s own expense);
research of commodity market conditions and information services;
wholesale and retail trade in the domestic market of the country;
organization of production and marketing of competitive goods;
association of medium and small producers, financing their sales activities;
investing in production, acquiring full ownership of enterprises;
transfer of equipment for rent or leasing;
providing loans;
investment cooperation with foreign partners in the construction of facilities;
provision of other services (in the field of insurance, transportation, warehousing, equipment repair and maintenance, engineering).
A trading house, as a type of large reseller, can be closer to producers, or, on the contrary, to consumers. In the first case, it resembles a trading and manufacturing enterprise, and in the second, a wholesale and retail enterprise.
Enterprises with a limited service cycle
Wholesale trade enterprises with a limited service cycle include:
wholesalers-organizers;
wholesalers and traders;
wholesalers-traveling salesmen;
small wholesale stores “Cash & Carry”.
A wholesale organizer, as a rule, does not have warehouses and works in industries where there is transportation, storage and sale of goods in transport containers (containers, wagons, tanks, etc.). Upon receiving an order from a buyer, such a wholesaler will arrange for the product to be delivered from the manufacturer directly to the buyer. He is the owner of the goods and assumes all risks from the moment he accepts the order until the completion of delivery. Often wholesale organizers have their own or rented vehicles. The wholesaler-organizer can be a forwarding company, but only if this company purchased goods with its own or borrowed funds and entered into a transportation agreement with a transport organization.
A wholesaler-posilmerchant is a wholesale trade enterprise that is engaged in the wholesale sale of goods, sending catalogs and other promotional materials to enterprises - potential buyers.
To perform its functions, a wholesaler-cum-merchant must have a warehouse and choose an effective type of delivery of goods.
Using catalogues, a wholesaler-posiltrader provides manufacturers, wholesalers and retailers with information about their assortment. Upon receiving an order from the buyer, he sends a complete batch of goods using the services of a post office or courier delivery service. Now such services operate on road, rail and aviation modes of transport.
A wholesaler-traveling salesman is a small enterprise or entrepreneur who purchases goods at his own expense and delivers them to the procurement center, manufacturing enterprise or retailer.
Traveling wholesalers resell primarily agricultural products and consumer goods. Having their own transport, they purchase products in rural areas and sell them to procurement organizations, kitchen factories, and retail enterprises. Purchasing perishable food products from manufacturers that quickly deteriorate (dairy products, bread and bakery products, confectionery, culinary products), traveling salesmen deliver them to small retail outlets, catering establishments, hotels, sanatoriums, and the like.
Entrepreneurs, who are called “shuttle traders,” can also be considered wholesalers-traveling salesmen. Abroad or in other regions of Ukraine they purchase at their own expense small batches goods, deliver and resell them to retailers, receive new orders and go back to buy goods. Often such entrepreneurs have their own retail outlets where they sell part of the purchased goods.
The small-scale wholesale store “Cash & Carry” (English: fees and delivery) sells goods to owners of small stores and small retail trading networks in cash or by bank transfer, but without delivery.
This store is like a compound: here goods are not only sold, but also stored. The trading floor has wide aisles, warehouse-type shelving, and minimal interior decoration.
Selling goods in a small wholesale store has the following features:
wide range of goods;
free access for the buyer to goods, the opportunity to independently familiarize themselves with and select goods;
low prices compared to prices in retail stores;
providing discounts;
payments for cash are carried out through a payment center, as in a self-service store;
The buyer carries out the removal of goods from the store.
Most often, small wholesale Cash & Carry stores specialize in the sale of food products, perfumes and cosmetics, household chemicals, haberdashery, and computer equipment.
2.2. Wholesale trading enterprises, their types and types
Before going to market relations Wholesale enterprises in Russia were divided into two groups:
1) state wholesale enterprises of the Ministry of Trade of the RSFSR;
2) cooperative wholesale enterprises of the Central Union of the RSFSR.
During the years of perestroika, a structural policy for the development of wholesale trade was carried out. The long-term goal of this policy is to ensure market diversity among entities engaged in wholesale activities. The implementation of structural policy in wholesale made it possible to fill the consumer market with goods, created conditions for accelerating the promotion of goods through distribution channels, and activated domestic producers.
Wholesale trade in market conditions should be more flexible, quickly responding to any changes in the economy. The peculiarities of the development of domestic trade and meeting the market's needs for goods have caused a typical and specific diversity of wholesale structures. Currently, a network of wholesale trading enterprises has been created in the country various forms property and departmental affiliation.
Wholesale enterprise is a reseller who acquires ownership of large quantities of goods for wholesale trade. Today, the rights of wholesale enterprises are significantly expanded. They independently determine their specialization, sphere and area of activity, and functional orientation.
In the Russian consumer market, depending on the scale of activity, there are two types of wholesale enterprises:
■ first-level wholesale enterprises;
■ second-level wholesale enterprises.
Types of wholesale trading enterprises
Wholesale enterprises of the first level- large wholesale structures of national (federal) and interregional scale. These enterprises should be the core of the entire wholesale trade structure. They must guarantee the sustainability and strategic stability of the entire wholesale trade. Based on the activities of these enterprises, commodity distribution channels are formed for large Russian commodity producers, foreign manufacturers and suppliers of goods. Favorable conditions are being created for manufacturers and suppliers of domestic goods to enter foreign markets. First level enterprises include:
■ enterprises meeting federal needs;
■ interregional enterprises carrying out accelerated delivery of goods to remote regions of the country (regions of the Far North, Far East etc.) - to organize an uninterrupted supply of goods to the population;
■ wholesale structures concentrated in historically established centers of production of such goods as furniture, ceramics, crystal, textile goods, etc. Here, the development of production occurs unevenly and wholesale structures are designed to ensure the rhythm of the process of goods distribution.
Basic organizational and legal forms of first-level enterprises:
■ open joint-stock companies (OJSC) with a large share of state participation in their authorized capitals;
■ state concerns.
In the future, these national-level enterprises will be the basis for the formation of trade, financial and industrial groups, trade and financial groups, trading corporations, transnational companies, unitary state enterprises of strategic purpose.
Wholesale enterprises at the federal level sell goods throughout the country. Buyers can be:
■ independent second-level wholesale organizations;
■ large retail structures and their associations;
■ industrial enterprises.
The product range of wholesale federal enterprises should be formed taking into account the list of goods purchased for federal needs, supplying special groups of consumers.
Second-level wholesale enterprises- wholesale enterprises at the regional (intraregional) level.
This is the main link in wholesale trade. These wholesale organizations purchase goods from federal-scale wholesale structures and directly from commodity producers both in the region of location and in the rest of the country. The main task is to bring goods to retailers and other consumers in the area of their activity. They provide goods to regional commodity markets.
Second-level enterprises include:
■ independent wholesale structures of the country's regions - independent, autonomous wholesale bases, warehouses;
■ dependent regional wholesale structures:
■ sales divisions of local industrial enterprises;
■ wholesale enterprises of consumer cooperation;
■ wholesale structures of local large retail organizations.
These enterprises operate in the form of business partnerships (LLC) and joint stock companies (OJSC, CJSC).
At the regional level, various associations should become widespread. They can be formed in the form of valuable wholesale trading companies and voluntary wholesale-retail chains.
Each type of wholesale enterprise can exist in different forms.
Types of wholesale trading enterprises
There is a certain classification of wholesale enterprises and wholesale intermediaries according to various criteria.
I. By functions performed
1. Universal intermediaries- These are wholesale merchants or wholesale traders, or wholesale enterprises or distributors. They carry out the entire range of organizational and commercial activities. They buy goods at their own expense. Carry out transportation of goods and storage. Transform the industrial assortment of goods into commercial ones. They provide loans to consumers and advances to suppliers. They are engaged in advertising and advisory and information services. They act as independent economic entities carrying out full cycle procurement and sales operations with the transfer of ownership of goods.
2. Distributors- companies that carry out sales on the basis of wholesale purchases from large industrial firms producing finished products. They also provide marketing and intermediary services. These are relatively large companies that have their own warehouses and establish long-term contractual relationships with industrialists.
3. Specialized intermediaries concentrate their activities on individual functions:
■ information intermediaries;
■ information and contact intermediaries;
■ search intermediaries;
■ trusted intermediaries.
4. Information intermediaries(pure), brokers, do not have goods at their disposal, fulfill the terms of sale dictated by the manufacturer.
Brokers specialize in a narrow range of products.
Brokerage firm- an enterprise that provides intermediary services to government and commercial structures, joint ventures, Russian and foreign citizens in the acquisition, sale and exchange of goods.
Broker- an individual - a trading intermediary when concluding transactions between buyers and sellers on a commodity exchange. Acts on behalf of and at the expense of clients, receiving remuneration from them. Brokers search for interested sellers and buyers, bring them together, but do not participate in the transaction either with their name or their capital. The main function of a broker is to bring the buyer and seller together and help them come to an agreement. The broker does not hold inventory, does not participate in financing, and is limited in taking on risk.
Brokers have information about market conditions, purchasing and sales opportunities. They maintain high profit margins in their operations.
5. Information and trading intermediaries promote the establishment of economic ties between suppliers and consumers.
Thus, commission agents look for partners and sign contracts on their own behalf, but fulfill them at the expense of the seller or buyer.
6. Search intermediaries- these are agents of industrial companies who search for potential buyers of goods in certain regions. They are often called sales agents. This is a company or persons who act on the basis of contracts of agency or simple intermediation. They are designed to facilitate the conclusion of supply contracts on behalf of the manufacturer.
7. Trusted intermediaries- a company or persons acting on the basis of an agency agreement. Sellers or buyers engage intermediaries to carry out transactions on behalf and at the expense of the principal. The terms of reference of the attorney regarding commercial transactions are specified. The manufacturer must reimburse all attorneys' expenses and pay remuneration.
II. By subordination
1. Independent intermediaries- act as buyers, that is, they purchase goods on the basis of a purchase and sale agreement. They become the owners of the product and can sell it at their discretion in any market and at any price. The relationship between such intermediaries and manufacturers terminates after the parties have fulfilled the supply agreement. These intermediaries different countries are called differently - wholesalers-merchants, wholesale enterprises, distributors, contract traders, concessionaires, etc.
They play a leading role in wholesale trade. For example, in the US wholesale trade over the past 15 years, they account for 78% of the total number of wholesalers and over 50% of the volume of wholesale turnover. They take on a high share of business risk. Independent wholesalers are wholesalers with a full range of trade and intermediary services.
It is advisable to use independent intermediaries:
■ when a manufacturer enters new markets;
■ when working in the main market to create competition with the manufacturer’s sales divisions;
■ to oust competing firms from the market;
■ -if the manufacturer cannot independently provide* a range of trade and intermediary services. Traders specializing in wholesale trade
enterprises in Russia should form the basis of a system of wholesale structures in the consumer market. Their main task is to create conditions in the middle level of commodity distribution for large commodity producers and retailers to enter the market. It can be:
■ wholesalers specialized in certain goods;
■ universal wholesalers. Independent wholesale enterprises specialized in wholesale trading activities should become the main ones in the Russian consumer market. They can sell both separate groups of goods and goods of a universal range. These wholesale structures account for 50-60% of the wholesale turnover of consumer goods.
2. Formally independent intermediaries. They appeared in connection with the desire of manufacturers to include these enterprises in their production and sales cycle through a system of contracts.
The following types of contracts are used:
■ contract of assignment - concluded with trusted or sales agents;
■ commission agreement - determines the powers of commission agents;
■ simple mediation agreements. Let's take a closer look at the agents.
Agents do not take ownership of the goods and perform only a limited number of functions in facilitating purchases and sales.
Types of agents:
■ production agents;
■ sales agents;
■ purchasing agents;
■ trade (commercial) agents. Producer agents represent two or more producers. They enter into an assignment agreement regarding pricing policy, activity boundaries, delivery services, and remuneration amounts.
Trade (commercial) agents are individuals or legal entities acting on behalf of an intermediary as a proxy. They are authorized to carry out business, financial, trade, commercial, economic transactions, and carry out orders in the interests of the company.
Commercial agents study market conditions for goods and consumer demand, facilitate wholesale purchases and sales of goods, and are involved in the sale of goods and promotion of sales on the market. They can negotiate prices, assortment, and delivery methods. They do not have ownership rights to goods. Payment -■ commission.
Authorized sales agents are intermediary wholesale structures that do not transfer ownership of the goods to them. They are dependent intermediaries. They work on the basis of fixed-term and open-ended employment agreements. Activities are not limited to territorial boundaries. They significantly influence the pricing policy, terms and conditions of sale of goods.
Dependent intermediaries - sales agents - include consignors and brokers.
Consignees are intermediaries who have their own warehouses and work by agreement.
The seller delivers the goods to the consignor's warehouse, and he is obliged to sell the goods from the warehouse on his own behalf, but at the expense of the seller by a certain date. Thus, the seller credits the consignee for the period of sale of the goods.
Brokers - firms or individuals who search for interested sellers and buyers, bring them together, but do not participate in the transaction either with their name or their capital. Brokers are well informed about market conditions. Brokers do not hold inventory, do not participate in the financing of transactions, and are limited in taking on risk.
Brokers typically represent the buyer, who pays them a commission. Working with a broker is important where buyers want to buy a product during a period of surplus of this product at a low price or need urgent deliveries.
III. Organizers of wholesale turnover
They are an important element of the market infrastructure. The main task is to create conditions for organizing wholesale trade.
Organizers of wholesale turnover include wholesale fairs, commodity exchanges, wholesale food markets, trade and industrial exhibitions, commodity auctions, and trades.
Wholesale fairs- This is a progressive form of wholesale purchases of goods. There are wholesale fairs of international and national scale, and regional (local) wholesale fairs. They are not independent subjects of wholesale trade activities. At wholesale fairs, transactions for the purchase and sale of goods of a complex assortment are made. Wholesale buyers make purchases for retail chains on the basis of individual selection. Fairs are a periodically operating market that meets regularly in the same place, at a certain time of the year, for a certain period.
Commodity exchanges- a special type of permanent markets where purchase and sale transactions are made for mass raw materials and food products. Moreover, these goods are qualitatively homogeneous and interchangeable. Products are sold based on samples, without presentation or inspection.
Wholesale food markets occupy an intermediate position between a wholesale fair and a commodity exchange. These are commercial economic structures that organize the purchase and sale of agricultural raw materials and food products in certain places and according to established rules. The system of wholesale food markets is designed to provide year-round uninterrupted supply to the population quality products nutrition and form specific economic structures. Markets provide standardization, certification, sanitary and veterinary control over the quality of sold agricultural products and livestock.
Trade and industrial exhibitions- a periodically operating market aimed at demonstrating scientific and technical achievements. Here it is allowed to carry out commercial transactions based on the displayed samples. Types of trade and industrial exhibitions:
■ short-term;
■ mobile;
■ permanent exhibitions of samples.
Commodity auctions- specially organized, periodically operating markets in certain systems, where goods are sold through public auction at a predetermined time and in a specially designated place. Moreover, these goods become the property of the buyer who offers the most high price. Goods must have individual properties. Buyers can preview them. The sale of goods can be carried out either by the owner or by an intermediary. Auction trade can be wholesale and retail.
Auction stages:
■ preparation;
■ inspection of the goods;
■ registration and execution of an auction transaction. Lot - consignments of goods sorted based on uniformity of quality and intended for auction sale.
Bidding is a way of purchasing goods, placing orders and issuing contracts. Here, proposals from several suppliers are attracted to a certain, predetermined deadline. The contract is concluded with the one whose offer is most beneficial to the auction organizers.
Types of trades:
■ open - all interested companies participate in the auction;
■ closed - only certain companies are invited to participate in the auction.
Bidding stages:
■ preparation;
■ submission of proposals;
■ selection of supplier;
■ signing a contract.
Tender - a notice of upcoming tenders, or a set of tender documentation, or an invitation to participate in tenders.
The long-term goal of the structural policy for the development of wholesale trade is to ensure market diversity of structures carrying out intermediary activities.
Structure of wholesale intermediaries
I. Wholesale and intermediary companies:
■ wholesale and wholesale-retail trade chains;
■ independent distributors;
■ agent firms;
■ brokerage houses;
■ trading houses;
■ dealerships;
■ commission houses;
■ purchasing cooperatives.
II. Organizational commodity markets:
■ fairs;
■ commodity exchanges;
■ auctions;
■ wholesale markets for agricultural products.
III. Trade and service companies:
■ warehouses common use;
■ companies providing transport and forwarding services.
IV. Leasing companies.
V. Information and reference organizations:
■ marketing research centers;
■ information and commercial telecommunication networks;
■ credit reference companies.
VI. Organizations providing purchase and storage of goods for government needs:
■ state reserve warehouses;
■ government contract corporations.
The production of goods and the restoration of the entire variety of economic ties in the country depend on how wholesale trade develops.
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Organization wholesale trade (3)
Abstract >> Management... . Wholesale trade turnover by implementation includes the sale of goods organizations And enterprises retail trade located in the area of activity wholesale enterprises. In-system wholesale ...
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Abstract >> Economics... System organizations wholesale trade Main forms of implementation wholesale trade are: trade on wholesale markets; wholesale shopping centers; wholesale warehouses (bases). Enterprises...to decide on implementation products; "voluntary" regime
Accounting, analysis and audit of commodity transactions in wholesale trade using the example of PKF UNI LLC
Abstract >> Accounting and Auditing... wholesale trade Wholesale trade sells goods, products enterprises, institutions, supply and sales, intermediary and others organizations... transportation, storage and implementation, shelf life and implementation as a percentage of the cost...
We all know that it is wholesale structures that help provide the wide range of goods that we see today on the shelves of retail stores. If you are thinking about organizing a profitable business in the field of wholesale trade, then our article will tell you where to start and how to avoid the difficulties that await you along the way.
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Business in wholesale trade: what are the advantages?
Wholesale trade is the purchase of goods in large quantities from a manufacturer or supplier for further resale in small quantities. In other words, the product is purchased not by the end consumer, but by business representatives for the purpose of resale or use for production needs.
Of course, the wholesale business plays a significant role in the system of economic relations between regions of the country, industries, product manufacturers and retail organizations.
Often, ambitious beginning entrepreneurs are faced with the problem of choosing between such forms of trading activity as wholesale and retail. Both of them have a number of advantages and disadvantages. By comparing them, you can make one or another choice.
For example, to organize a retail business you need:
- find a commercial premises located in a suitable location so that the store is “competitive”;
- have enough money to buy the premises or rent them monthly and to purchase goods;
- pledge funds to pay store staff;
- provide for the costs of advertising the store and its promotion.
In order to organize a business in wholesale trade, you will need to think through the following components:
- selection of a reliable supplier (one or more);
- selection of stores to sell goods (their number may vary);
- methods of transporting goods (renting or buying trucks. Their number will depend on the scale of your business);
- personnel selection.
Experts note a number of advantages of a wholesale business:
- in the field of wholesale trade, there is no need to “advertise” your enterprise after a customer base in the retail field has been formed;
- there is no need to pay much attention to location, as this would be necessary for a retail chain of stores;
- the size of wholesale purchases and transactions is larger than retail ones;
- the trading area of the wholesale company is wider;
- large producers, including regional ones, are more willing to use the services of wholesale organizations;
- Wholesale organizations have the opportunity to choose the most profitable type of goods for trade, for example, alcohol, tobacco, semi-finished products or household chemicals. Stores try to create the widest possible range, satisfying all the wishes of customers;
- when purchasing goods in bulk, significant savings occur, which means that when organizing wholesale trade, the entrepreneur can set his own retail price for the product;
- All conditions for the purchase/sale of goods between wholesale trade organizations and retail stores are regulated by the contract. This eliminates possible conflicts, misunderstandings and disagreements. Payment for delivered products often occurs immediately - when trading in bulk, there is no need to wait for their sale by end consumers;
In addition, the legislation of our country provides different rules taxation for wholesale and retail trade. Thus, retail trade enterprises are subject to the Unified Tax on imputed income, and wholesale trade organizations pay contributions under the General or Simplified Taxation System (OSN or STS). These schemes are simpler.
Retail trade also has a number of advantages:
- retail trade involves a greater number of transactions and retail outlets for the sale of goods;
- there are also no costs for maintaining large warehouses;
- The retail price can be an order of magnitude higher than the wholesale price, which means you can earn more on “retail” with a competent approach and trade margins.
But in general, the advantages of wholesale trade in reality modern economy obvious.
You need to keep records of goods regardless of whether you trade wholesale or retail. The automation program Business.Ru will help you with this. Combine all the company's operations into one scheme - from an order to a supplier to shipment to a client. Organize the smooth operation of several departments in a single database.
Types of wholesale trade
First, decide on the type and forms of wholesale trade that will suit your business. The two main forms of wholesale trade are transit and warehouse:
In the first case, products are delivered to the retail network directly from the manufacturer or wholesale organization, without delivering goods to warehouses. Its advantage is that the safety of goods is higher and trade turnover occurs faster.
In the warehouse form, goods are sold directly from warehouses. This type of wholesale trade is the most common today, since it is possible to pre-sale goods and supply retail stores with small quantities of goods of the required range.
Wholesale trade enterprises are also distinguished by the breadth of the range of goods - from 1 to 100 thousand items is “considered” a wide assortment, less than a thousand items of goods are a “limited” assortment of a company in the field of wholesale trade, and less than two hundred items are already a “narrow” assortment, or "specialized". Based on the size of turnover, large, medium and small wholesalers are distinguished.
Also, organizations in the field of wholesale trade may differ in the method of delivery - when goods are delivered by employees of a wholesale company and on company vehicles, or when goods are issued to retail stores directly from the warehouse.
Also, organizing wholesale trade implies various systems for selling goods on which your wholesale business will be based - “exclusive”, “selective” or “intensive”:
In the first case, the manufacturer issues a license to trade in accordance with the terms of franchising. The number of intermediaries here will be limited.
“Selective” sales implies the conclusion of dealer or distribution agreements between the manufacturer and wholesale trade organizations. As a rule, this system operates as a market for the sale of technically complex products.
With an “intensive” sales system work in progress at the same time with big amount intermediaries and wholesale trade organizations.
How to organize a wholesale business from scratch
How to start a wholesale business?
First, you need to decide on the types of goods and the industry in which you plan to conduct your wholesale business. Carefully study this area and the experience of other wholesalers, analyze the specifics of the activities of the main players - large enterprises.
First of all, pay attention to goods or products that are produced in your region. What is it famous for? For wholesale trade, choose goods that are in high demand, regardless of the season, but at the same time, try to choose niches that are “unoccupied” by competitors and those areas where you can “play” with prices.
A lot of controversy arises among novice entrepreneurs: which goods are more profitable to trade in wholesale and which in retail? The main law of business in wholesale trade is the competent selection of assortment. You can independently choose the most profitable products for wholesale trading.
First, ask yourself: what products will always be in demand among customers? For example, alcohol, tobacco, and food products are the most popular among retail store customers.
But here special attention should be paid to the fact that food products have a limited and short shelf life or special storage conditions in the warehouse. Household chemicals and cosmetics are also in great demand among consumers - these goods are in demand at any time of the year and regardless of the economic situation in the country.
Organizing the sale of agricultural products in bulk directly from the manufacturer is also likely to be successful - the demand for goods such as milk, potatoes, flour, cereals, sugar, vegetables and fruits is consistently high all year round.
When organizing wholesale trade, pay attention to the ease and specificity of transporting goods. Obviously, delivering furniture is much easier and safer than delivering drinks in glass containers to stores.
The Business.Ru program will help you effectively manage your assortment, control receivables and payables, and place orders based on sales data.
The next stage is the selection of storage space. Before starting a wholesale business, pay attention to this aspect: finding a warehouse can be a big problem.
Today, many entrepreneurs note an insufficient amount of warehouse space in major cities and small populated areas. Their rental can be expensive, depending on the size of the warehouse and its location.
Important! You need to rent or buy warehouse space immediately after you have decided on the type of product you will resell.
Think about whether it would be more profitable for you to build your own warehouse than to rent a ready-made space on a monthly basis? Now there are a large number of opportunities for building prefabricated warehouses - they are built in a short time and are suitable for specific types of goods for wholesale trade.
Also consider options for purchasing or renting warehouse equipment, refrigeration chambers, and shelving.
Set the target turnover value for your wholesale trade enterprise. This can be done based on an analysis of the number and volume of orders from wholesale buyers and their direct survey; you can also evaluate statistical data on the sale of goods and market conditions.
Today, organizing wholesale trade is unthinkable without such an important condition as the presence of a reliable supplier. Finding a supplier is the main stage of organizing a business.
The best option is to find a manufacturer in your area to work with directly. That is, to find those who directly produce goods or products and are interested in their speedy sale on the market.
It could be a dairy plant or a furniture factory. This, a priori, means lower prices, and you won’t have any problems with delivery when organizing wholesale trade.
Often manufacturers, especially large federal ones, deal with a large number of different wholesalers or dealers in the regions, so the “chain” of resales can be long and “pass” through several wholesalers and resellers at once.
It depends on the demand for products, the volume of the retail market in your region and the number of competing enterprises in the wholesale trade sector. In any case, products reach retail stores through the wholesale business, where they are purchased by end consumers.
When starting a wholesale business, think about the fact that the wider the range of goods for resale in your wholesale organization, the higher the profit will be. It is obvious that the “increase” in volumes and contracts with suppliers will occur gradually.
It is really difficult to find a large manufacturer who does not already have a company that carries out wholesale purchases of goods in your region. But large suppliers and manufacturers are interested in cooperation with the wholesale business, which means you will be offered a system of discounts and bonuses.
Of course, by working directly with manufacturers, you can save a lot.
