A distribution mannequin provides merchandise in bulk portions, sometimes to retailers or different companies, at costs decrease than these provided to particular person customers. This enables these entities to amass items for resale, additional processing, or inside use. Examples embody a clothes distributor offering attire to boutiques or a meals provider promoting produce to eating places.
This method is important for financial effectivity, enabling economies of scale that cut back per-unit prices and streamline provide chains. Its historic roots could be traced again to early buying and selling techniques, and it has advanced with developments in manufacturing and logistics. The benefits embody price financial savings, elevated market attain, and the potential for greater revenue margins for each the provider and the customer.
