What role does a wholesaler typically play in the supply chain?

A wholesaler plays a crucial role in the supply chain by purchasing large quantities of products directly from manufacturers and selling them to retailers. This function is essential as it helps to bridge the gap between manufacturers and retailers, facilitating the distribution process. Wholesalers often buy in bulk at discounted prices, which allows retailers to purchase smaller quantities without needing to engage directly with manufacturers for every individual product they need.

By concentrating on this transactional role, wholesalers allow retailers to manage their inventory more effectively and reduce the risks associated with overstocking or understocking products. This capability promotes efficiency in the supply chain and contributes to smoother operations for both manufacturers and retailers.

In contrast, selling directly to consumers, creating marketing strategies, and managing customer relationships represent functions typically associated with retailers or marketing departments rather than wholesalers. These roles focus on the end-user market and direct consumer engagement, which differs from the wholesale function of facilitating retailer supply.