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Shortage of resources- a challenge to wholesale distributors

Shortage of resources- a challenge to wholesale distributors

Shortage of resources- a challenge to wholesale distributors


By the early 1990s, a report characterized that business environment will become a roller coaster ride for wholesale distributors. Now in the present the wholesale distribution industry finds itself in that future, the roller coaster ride that began in late 1900s has continued at an ever-accelerating pace. Use of the internet for business transactions is gaining momentum, which opened distribution channels unimaginable in just a few years. But still there are lots of problems that create hurdles in the way of wholesale distributors. One of the main problems is the shortage of resources and it is quite a big challenge for a wholesaler. Only few sharp and intelligent people overcome the hurdle of shortage of resources.

Shortage of resources is due to some specific reasons. The first main reason is shortage of capital money. Doing business is not an easy task. One needs to have at least an equal amount of money that is invested in business. Keeping in view the current economic condition of the world, it is very difficult for small businessmen to survive because money is accumulated and the consumer hesitates before spending the money which ultimately results in very less profits for businessmen. Under these circumstances, wholesale distributor should play the game very sharply because he needs to balance his accounts receivables and accounts payables efficiently.

Besides a wholesaler should also devise a backup plan in case he is unable to make payments to the manufacturer, or the retailer is facing difficulty to forward him payment quickly. This will simply damages relationship between them. So, the wholesale distributor needs to manage all of these things without damaging his relationship because a damaged relation cannot last long and soon the wholesaler will lose all of his clients. One must not outrun and fear all these challenges. He should take them all positively because to attain big profits, one needs to work hard and sharply. Besides there are huge opportunities in the wholesale distribution business and it will never shrink but will always expand.
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Shortage of resources- a challenge to wholesale distributors