Commerce And Production: Production: Intermediaries In A Supply Chain (Copy)
Cheat Sheet: 2.4 Intermediaries in a Supply Chain
| Intermediary | Trade Type | Role | Example |
|---|---|---|---|
| Wholesaler | Home trade | Buys in bulk from producers, sells in smaller quantities to retailers | Metro Cash & Carry selling goods to small shops |
| Retailer | Home trade | Sells goods/services directly to final consumers | Supermarkets, pharmacies, clothing stores |
| Agent | International trade | Acts on behalf of buyers/sellers to arrange deals, earns commission | Export agent arranging textile sales abroad |
| Factor | International trade | Buys goods from exporter, resells in foreign market (takes ownership) | A factor buying Pakistani carpets to sell in Europe |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Feature | Wholesaler | Retailer | Agent | Factor |
|---|---|---|---|---|
| Ownership of Goods | Yes | Yes | No (just arranges) | Yes (takes ownership) |
| Customer | Retailers | Final consumers | Exporters/importers | Foreign market buyers |
| Income Source | Profit margin | Profit margin | Commission | Resale profit |
| Role in Supply Chain | Links producers to retailers | Links retailers to consumers | Facilitates deals in global trade | Introduces goods into foreign markets |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Advantages | Wholesaler | Retailer | Agent | Factor |
|---|---|---|---|---|
| For Producers | Reduces storage needs | Increases sales to consumers | Expands export opportunities | Secures direct foreign market |
| For Consumers | Greater availability via retailers | Easy access, wide choice | More variety of imported goods | Competitive prices in foreign markets |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Example Supply Chain | Flow |
|---|---|
| Local goods | Producer → Wholesaler → Retailer → Consumer |
| Export goods | Producer → Agent/Factor → Overseas buyer |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course