Why Does the Wholesale Distribution Industry Grow Faster than the Rest?

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According to the National Association of Wholesale Distributors, the wholesale distribution industry continues to grow faster than the overall U.S. economy during the recent economic expansion. In 2007, revenues of wholesaler-distributors increased 3.7 percentage points more than U.S. Gross Domestic Product (GDP).

The industry seems to retain its precedence because wholesaler-distributors perform supply chain functions more effectively and efficiently than either manufacturers or customers. Manufacturers often rely on distributors to communicate with their customers because wholesaler-distributors offer flexibility, fast response to customer needs, consistency of service, and local presence. Thus, wholesale distribution remains the most significant channel to market for manufacturers and the most important supply chain for customers, particularly when there are many small customers and a wide variety of manufacturers.

Wholesaler-distributors are leaders in using technology to reduce low value-added labor activities such as order processing, billing, inventory control, delivery-route scheduling, and warehouse management. This may have a large impact on why productivity growth in wholesale distribution has consistently exceeded the overall business sector.

AbeTech architects and integrates track-and-trace solutions that exploit the cutting-edge potential of bar code, RFID, and enterprise mobility technology. AbeTech offerings span industrial wireless infrastructure-building, enterprise mobility computing, advanced data collection, closed-loop RFID systems, and automated labeling capabilities.

By Jennifer Toepper with AbeTech, a leading Hardware Provider Microsoft Dynamics ISV Partner

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