These distribution centres are centres where products are distributed from storage facilities to other businesses who would resell the products to retailers and consumers alike. Wholesale distributors resell their merchandise to businesses, industries, institutional, professional, and commercial business users and not to the final consumer.
Challenges faced by Wholesale Distribution
- Increasing Competition
Wholesale distributors are always faced with increasing competition. There is the fear of other competing distribution centres making more sales, the dread of producing products similar to their merchandise. If the product is of better quality or is sold at lower prices, it might have an adverse effect on the sales of their products.
- For distributors, competition from manufacturers is increasing daily, and this is because every day, manufacturers find more ways to sell directly to the consumers. If consumers can make purchases directly from manufacturers, there would be no need for distribution services.
- Wholesales distribution is dependent on transportation. Either by sea, road or air. An increase in the cost of gas would mean an increase in operating costs. The costs can sometimes be passed to suppliers. Still, small manufacturing companies may not be able to bear the fuel surcharges; thus the cost eventually falls on the distribution company.
Examples Of Wholesale Distribution Centres
- Thomas and Howards Co. Inc is one of the leading distributors for restaurants and convenience stores in Carolina and Georgia. The company was founded in 1897. The company distributes tobacco and tobacco-related customers.
- QFilchia Wholesale Distributing is a family-owned distribution company, located on the east side of Columbus, Ohio. The company offers competitive prices for items sold to schools, convenience stores, concessions, and tobacco shops. The company is concerned with helping their customers’ businesses run smoothly.
- J&J New York Distribution Corporation is one of the largest consumer markets in the United States. This is because it is the largest independent wholesale distributor in New Jersey, New York, and the metropolitan areas. They are located at Lafayette Avenue, Bronx, New York.
- Spicy World VI Inc. It is an ethnic food distributor that supplies African, Indian, and British food products and spices. The company was incorporated on the 6th of June, 2016.
- Tarantino wholesale food distributor located in Andrews Ave, Diego, California, and in Buffalo, New York. The distribution company is a significant supplier of sausages across the country.
- Brenham Wholesale Grocery Co. Inc is located in Brenham, Texas. Brenham Wholesale Grocery company is a wholesale distribution for restaurants, grocery stores, convenience stores, institutional customers, and food services. The company offers various services to its customer partners.
- Family food distributors were founded in 2002 and are located In Kearny, New Jersey. They offer quality products and excellent services. They also help employees and clients develop new opportunities with the latest technologies.