Advantages and Disadvantages of Working with Suppliers

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Numerous retail outlets do not always reflect the situation on the wholesale market. A number of brands allow their products to be sold only to one company in the region. Therefore, the issue of finding key contractors should be resolved even during the planning of opening your business. There is a conditional division of suppliers into: Manufacturers and distributors. Intermediaries who cooperate directly with the manufacturer. Each category has its own advantages and disadvantages.


Benefits of cooperation with manufacturers: Lower cost of goods than when gambling data hong kong working with intermediaries. However, when choosing this type of work, you cannot rely only on this indicator. Since it can be offset by an inconvenient shipping schedule, complex logistics, etc. High quality products, working directly with the manufacturer guarantees that the purchased goods will not be counterfeit. Disadvantages of working with manufacturers: The supply volumes are calculated for large companies and are not always suitable for small and medium businesses.


Entrepreneurs planning to work directly with the manufacturer should clarify the minimum volumes of the supplied lots in advance. Strict requirements for cooperation, deadlines and payment are due to the high cost of loading production capacities. Read also How to name a clothing store: main rules and common naming mistakes Read more Advantages of working with intermediaries: Possibility to purchase small quantities of goods. A wider selection of products, as intermediaries often work with several manufacturers.