HELP ME, I don't get how this manufacturing and Dsitributing works (read details)?

Okay so like manufacturers make the stuff distributors get it from the manufacturers and then distribute it wholesale correct? THE THING I DON'T GET is like I know this friend of mine who owns a store and he gets his products from WESTERN FAMILY however western family doesn't manufacture they distribute. WHAT I don't GET IS IT SEEMS LIKE SOME BIG COMPANIES LIKE WAL-MART AND ALBERTSONS ARE ACTING AS THEIR OWN DISTRIBUTORS IS THAT RIGHT? In other words they get the products FROM THE MANUFACTURERS AND THEN STORE THEM IN THEIR WAREHOUSE I.E. The same thing western damily does only they take the products out of their warehouses is that correct?HELP ME, I don't get how this manufacturing and Dsitributing works (read details)?
There are manufacturers who make the product. One way to sell their product is through distribution. Which obviously they do, who warehouses product and turns around and sells it to Retailers who then in turn sell it to the public. Places like Walmart have their own distribution centers so they save money by cutting out the middle man. It costs a lot of money to warehouse and market product, and distributors incur this cost, but they make their profits from the retailers who pay them. The distributor gets a good price because they buy in bulk. The retailer doesn't have to stock a lot of product on their shelves and have quicker turnover, thus giving them higher profit.HELP ME, I don't get how this manufacturing and Dsitributing works (read details)?
manufactures make the stuff in bulk. They dont have the time or the money to market it. Wholesale ditributors purchase the material at a base cost and sell it to retail stores at a marked up cost. this benefits the store because they dont pay to store all the material they need. They use the dist. like their personal warehouse. some stores like walmart have enough money to own their own dist. center. their taking some of the cost they send to dist., and put it back in their pockets.
You are correct. Big companies act as their own distributor to make more money.





Years ago I worked for a big restaurant company. We acted as our own distributor. We would do things like buy seasonal stuff that could be frozen (like shrimp) a year ahead. The motive was we made 7% at the retail level and 7% more at the wholesale level.





The trick is you have to be big enough to have your own trucks, warehouses, future buying capability, etc.