The Value of A Wholesaler
The supply chain for lumber and building materials can be long and complex, and making sure a product finds a market can be daunting. By serving as the crucial link between the manufacturer and the retailer, wholesale lumber distributors add the value everyone needs to succeed.
Wholesalers can help ensure the right product meets the right market at the right time. And in today’s fast-moving economy, wholesalers can help lower procurement costs, broaden product selection, and add value to products.
Addressing industry and business trends
The last few decades have seen a significant shift to Just-In-Time delivery of products as the industry standard. Each company has to run lean to remain profitable. Wholesale distributors offer buyers the flexibility to purchase quantities that range from multiple rail cars to individual pieces. By working with a wholesaler, a buyer can turn over investory more quickly to lower costs and free up much-needed cash for further investment.
Streamlining lumber procurement
A major benefit of wholesale distribution is the wide product selection that a buyer would otherwise have to find multiple sources to receive. Instead, it can be done with one-stop shopping. Because wholesalers are buying from many different producers, buyers can tailor their products and species to the needs of their clients at a much lower cost.
In addition to offering wide range of products, wholesalers can also provide unique value-added services, such as packaging, remanufacturing and treatments. Buyers can often receive innovative product training and services to help sell products.
Supporting lumber producers
Wholesalers don’t just bring value to the buyer; they also can help a producer succeed. Manufacturers often have to spend years establishing new distribution networks or adapting existing ones. Wholesalers have a long history of knowing buyers and the markets. By working with a wholesale distributor, a producer can focus on its core business model.
As niche markets increase in importance and profitability, producers and suppliers need expertise and experience to create customization, branding, and marketing for products. Wholesalers can often remanufacture a product in response to market changes and also have experience in creating promotional campaigns.