McKesson, which traces its business roots to 1833, is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. The company delivers prescription and generic drugs, as well as health and beauty care products, to retail and institutional pharmacies worldwide. The company is also a major medical supplies wholesaler, providing medical and surgical supplies to alternate healthcare sites such as physician offices, surgery centers, nursing homes, hospital reference labs, and home healthcare agencies. In addition to distribution, McKesson offers management, consulting, technological, outsourcing, and other services that help customers navigate supply chain, clinical, administrative, and financial operations.
Services
What is Wholesale Trade?
Wholesale trade, also known as wholesaling, is a commercial activity carried out within the distribution of goods and services.
A wholesaler company purchases products in large quantities directly from the manufacturer and then sold them in smaller proportions to retailers.
The main characteristic of wholesale trade is that the wholesaler does not come into contact with the final consumer public.
It is the point that distinguishes it from the retailer, the commercial agent who is in charge of the items’ retail sale.
Importance of Wholesale Trade
The importance of wholesaling can find by looking at the role that wholesalers play in the distribution chain.
These companies are responsible for liaising when moving and distributing finished products from manufacturers to the retail market or intermediate products between manufacturers.
It means that the wholesaler, in its commercial exercise, manages to streamline the distribution process between companies, whether they are producers or marketers, so that they eventually reach the final consumer.
Their specialization in the distribution of products makes them an essential part of the distribution chain, lowering costs in the transport and delivery of products.
Consequently, it has a beneficial effect since it reduces the possible accumulation of merchandise for the manufacturer and the potential shortage of these items in the retailers’ stores.
Likewise, wholesale trade increases profitability for manufacturers and retailers in terms of costs associated with particular goods’ distribution and storage.
Types of Wholesale Trade
In concrete terms, there is no classification into types of wholesalers that is standardized. It means that we can find different interpretations in the variety of these wholesale trade agents.
In this sense, we can establish categories such as:
1. Wholesale Agents by Sales Volume
Small Wholesaler
Although they have relatively low sales volumes, these are wholesalers who are in charge of distributing goods to retailers.
They usually find in sectors where access is difficult or that they do not have the financial capacity to assume high transport, storage, and distribution.
Big Wholesaler
These are companies that have a financial and operational structure large enough to handle huge volumes of merchandise.
It allows you to obtain special prices from the manufacturers, which generates succulent benefits for the marketing, storage, and transfer of the products.
2. Wholesale Trade Agents According to the Producer
Intermediary Wholesale Agents
It is a company that is generally in charge of storing and distributing the merchandise, but it does not acquire ownership over it in this process.
Generally, this type of wholesaler receives its earnings in the form of commissions.
Commercial Wholesalers
It is the most classic type of wholesaler. In this case, the company acquires large volumes of products that pass into its property and then sell.
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