Question

Briefly explain the following:

Business Intermediaries

Answer 1

1. Business intermediaries are individuals or organizations that act as middlemen between producers and consumers, facilitating the exchange of goods and services.
2. They play a crucial role in the distribution channel by helping move products from manufacturers to end users. Intermediaries add value to the supply chain through various functions, including marketing, logistics, and customer service.
3. Business intermediaries can be individuals (such as agents or brokers) or organizations (such as wholesalers, distributors, or retailers). They perform various functions like purchasing, selling, and promoting products to bridge the gap between producers and consumers.
4. Intermediaries serve as the connecting link between manufacturers and consumers or between other intermediaries in the supply chain. For example, wholesalers buy products in bulk from manufacturers and sell them in smaller quantities to retailers, who then sell them to consumers.