WHOLESALECOMPUTERHARDWARE

DONE BY: SANDHANALAKSHMY .R

I YEAR MBA,

VIT BUSINESS SCHOOL,

CHENNAI CAMPUS.

CONTENTS

Wholesaling

Wholesaler types

Need for Wholesalers

Wholesale computer hardware

Example of ARROW ELECTRONICs

WHOLESALING

Activities in selling goods /services to those who buy or resale

Wholesalers mostly deal with business customers (rarely final

consumers)

Involves larger trade and larger transactions

Mere distributors, hence does not pay much attention to

promotion

Government’s legal regulations and taxes for wholesalers

differ from the retailers

WHOLESALER TYPES

Merchant wholesalers

Independently owned businessess that take title to the

merchandise they handle.

Full-service wholesalers

wholesalers who carry stock, maintain a sales force, offer

credit, make deliveries, provide management assistance (may carry

more than on merchandise lines).

Limited-service wholesalers

Does wholesaling for a focused set

Cash and carry wholesalers: sell limited line of fast moving goods

Truck wholesalers: sell a limited line of semiperishable goods

Drop shippers: serve bulk industries such as coal, lumber, and heavy

equipment.

Mail-order wholesalers: orders are filled and sent by mail, rail, or

plane

Brokers and agents: facilitate buying and selling, on commision

Brokers: brinng buyers and sellers together and assist in

negotiation

Agents: represent buyers or sellers on trade

Manufacturers’ and retailers’ branches and offices:

wholesaling operations conducted by sellers or

buyers themselves by means of dedicated branches and offices.

Specialized wholesalers:

Agricultural assemblers (buy agricultural output of

many farms), petroleum bulk plants and terminals (consolidate

the output of many wells) , and auction companies.

NEED FOR WHOLESALERS

To reach many small business customers at a relatively

low cost.

To hold inventories and thereby reducing inventory cost to

the manufacturer

To select items and assort according to their customers

need

Facillty for financing customers by granting credit

To supply information to suppliers and customers

WHOLESALE COMPUTER HARDWARE

Buys and sells computer hardwares like pc case, motherboard,

hard disk drive, monitor, keyboard mouse, etc.,

EXAMPLES

Merchant wholesalers: SOFTWARES DIGITAL (vendor for

Microsoft products)

Full-service wholesalers: EVERTECH, EMBEDO

TECHNOLOGIES Pvt. Ltd. (does overall distribution, repair &

service for many lines like Apple, Toshiba, lenovo, sony, Acer, etc.,

Brokers and agents: falcon trading systems ( trade computers)

Manufacturers’ and retailers’ branches and offices: Dedicated brand

stores like sony center, Apple store, etc.,

ARROW ELECTRONICS – Case Discussion

Global provider of products, services , and solutions to the

electronic components.

Serves as a supply chain partner for more than 900 suppliers

and 125000 original equipment manufacturers, contract

manufacturers, and commercial customers

It has a global network of 310 locations in 51 countries

They provide financing, on-site inventory management, parts-

tracking software, and chip programming

These services helped quadruple Arrow’s share price in five

years