Investigating Key Issues Affecting Food Retailers and Wholesalers

This report delves into the critical issues impacting food retailers and wholesalers. It identifies and analyzes two primary challenges: increasing demands from manufacturers and retailers, and the impact of high overhead costs. The report examines how these issues affect business operations, including the pressures faced by wholesalers to meet deadlines and the financial burdens of rent, supplies, utilities, and other expenses. The PESTLE analysis is used to assess the external factors influencing the sector, including political, economic, social, technological, ecological, and legal considerations. The report argues that the increasing demands from manufacturers and the overhead costs significantly affect business profitability. The reflection section discusses the lessons learned and suggests strategies for mitigating these challenges, such as improving coordination with manufacturers and controlling overhead expenses. The report concludes by summarizing the key findings and emphasizing the importance of addressing these issues for the success of food retailers and wholesalers.

KEY ISSUES IN
FOOD RETAILER
AND WHOLESALER
Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key issue that affect food retailer and wholesaler..................................................................1
Pestle analysis and reason of choosing above issues..............................................................3
Two key issue impact the business and arguments................................................................4
Reflection ..............................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................4

INTRODUCTION
The wholesaler is defined as a group of people who collect material and distribute in
market. The main working style of wholesaler are that they connect with number of companies
with their manufacturing units. This help him to get the material in cheap cost. They directly
linked with various organisation and their responsibilities is to distribute the firm product and
services within the market with proper time. The whole selling is now useful for those who have
connection or they have maximum facility of transport (Aitken and et. al., 2016). The product
which is produced from manufacturing in which wholesaler play major role in distribution of that
product to market and various marketplace. Sometime, this task create many of hurdle while
distributing and handling the process. The standard operating procedure is least in number but
challenges are formulated in such a way which create issues in various mode. After time while
this issue create loss and uncertainty in various aspect which introduce new market issue. That is
originated by wholesaler. The two issue were discussed and what are the implication and
approach is drive top eradicate this.
MAIN BODY
Key issue that affect food retailer and wholesaler
Whole selling and retailing is very simple in common words that distribution of product
and services to various market. The market need or availability of any product that is being
fulfilled by number of wholesaler (Anwar and et. al., 2019). They coordinated with number
manufacturing units to gain product and deliver to market to fulfil the need and availability of
product. In this, there are many issue created and that affect the whole selling market and
wholesaler profit. In all two point or key issue are discussed below:
Increasing demands from manufacturer and retailers:
This is common issue now day. Due to increase number of wholesaler and retailer are in
market. A fear factor which is act in this with respect with manufacturer is that they want quick
and fast delivery of product in marketplace. Manufacturer need fast and quick logistic system
which help manufacturer to sell maximum of product and goods. Which is directly consumed by
end users. In this aspect, in many manufacturing sector they used to produced large manufacturer
with national distribution system. The key role which is played by wholesaler is to maintain the
product availability in market. By this customer never faced shortage of product or service in his
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respected market. In various mode of channel wholesaler directly deal with customer or retailer
to maintain the product and service flow in that particular region and gain maximum to
maximum profit from it. Thus, retailer also create issue in this like big- box retail chain which
have huge base of customer. When the competition heat up the demand of product and service
are raised by retailer. Many retailer are now enhancing their product offering to customer to
enhance their customer base and also demand from the customer side. Since higher volume must
be delivered at short time, retailer are have their deadline and giving hug order to wholesaler
distributors (Dissanayake and et. al., 2016). Late shipment cause loss and not meet the order
criteria and they pay penalty for that. The demand being placed over the wholesaler seem to be
enhancing.
Overhead costs:
The high overhead cost is also create the issue factor which affect retailer and wholesaler.
This overhead expenses are enhanced sometime and this introduce many of problems in
distributing of product to market field. Higher over head cost can have a detrimental effect which
affect the wholesaler business. The over cost are:
Rent: This is about the space which is acquire by wholesaler to store the product. This space is
on lease or rent.
Supplies and goods: This tend to take huge amount to purchase from manufacture and
transportation charges are high due to enhance fuel prices and due to other terms.
Utility bills: This bill include electricity bill and other expenses.
Insurance: The insurance cost is high while providing protection to firm and employee.
Interest: this include taxes and other cost which is mandatory to pay even in no profitable
durations.
Advertising: This is part of business strategies which help to promote product and service in
marketplace, this tactics help to give brief information about product and service which is
reachable to need and expectation of customer (Mechmech and et. al., 2019).
Legal fees: This fees include maximum number of law payments which comes under the section
and essential to pay. Like licensing, transporting toll prices and many more.
Labour burden: This impact the labour forces and other and affect organisation and their goals.
Repairs: Sometime, the equipment and other apparatus need maintenance and cost is high and
create over head cost to firm and wholesaler to manage it.
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Telephone bills: This is common expenses needed by company in aspect of bill like
communication and this need phones and others device which create cost value.
Travel expenditure: due to any tour which is happen in aspect with business even meeting. This
expenses is also pay by wholesaler. This extra cost create burden and minimize the profit.
Pestle analysis and reason of choosing above issues
Pestle analysis is defined as observation of any firm which is affected number of factor
and this factor reduce profit and revenue of firm. So as per this, the analysis is taken in
wholesaler market and revenue market to analyse the key factor with pestle which affect market
and create bad impact in firm (Mukherjee and et. al., 2016). This help to continue improvement
in business.
Political factor: The performance of many warehouses and stores is depend on political
influences in its remote or macro-environment. This analysis help to know the effect of
government action on external firms. In this store must need to clear their policies and strategies
to exceed expectation based on environment and policies. Usually this factor influence firm to
grow their business.
Economic factor: This analysis refer to cover the external factor which is connected with
economic situation of warehouses and stores. In this the major opportunity is enhancing the
international trade, rapid and instant growth of developing markets, and many more. This
supports firm to grow economically.
Social factor: The sociocultural issue also create bad impact in business of whole selling. This
dimension identifies the social or sociocultural external factor that could changes customer and
employee behaviour towards firm and given proposed work. This help to know the enhancement
demand for business social responsibility. And create the positive environment that help to
access firm. In which wholesale have opportunity to improve its corporate social regulation
which help to establish the brand image and consumer perception.
Technological factor: In wholesale environment this create effects of technologies. This
perspective help in such way which create factor on whole selling. To develop new base for
technology which need investment and training programme to handle. This expenses are very
huge and time taken so it create impact in learning.
Ecological factor: As a retailer or wholesaler, it is need to be consider that ecological concern on
its environment create an impact. This model helps to identify ecological condition that adhere
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performance of business. Such as supply chain performance or market growth. Climate changes
are works as threat in firm. In whole sale the climate changes threat because part of the business
sells produce, which is depend on optimal climate condition (Zio and et. al., 2020).
Legal factor: Legal system require to firms. The effect of laws or regulation are create impact on
firms. While sometime the change is employments laws and tax reform which impact the
business in positive way when it decrease other on enhancement it create negative impact on
business.
The main reason of choosing the above issues because these two issue is generally
happen with wholesaler and retailer. This issue are major and primary which is faced by number
of wholesaler and retailer while operating their firm. The first issue is about the increase demand
of manufacturer, this issue is short but many of times its create matter of loss. If any
manufacturer want to deliver product in respected market then it is an deadline provided by side
of manufacturer (Robinson 2020). Same as drive by the retailer in many of condition. So
wholesaler faced various problem and this two issue is generally faced by wholesaler and this is
affected by number of factor which is discussed above.
Two key issue impact the business and arguments
The above discussed two issue majorly create the bad impact in business. From the first
issue which mentioned about how the enhancement of demand from manufacturer affect
regulation of firm. In this demand of manufacturer is about to distribution of product and service
in particular market within given time. This deadline are vary region to region but it is
challenging for wholesaler to transport product and manage time which is appropriate. If due to
any of reason, wholesaler fail to deliver the product then they must refund some value of money
to manufacturer as a penalty (Singh Kaur and Singh 2018). Manufacturer seem to be enhance
their demands with each passing days which is normal to high. But there is major reason to quite
obvious. Highly engaged supply chain and logistic process allow manufacturer to see more
customer in shorter time periods. There is also enhancing consolidation, mergers, joint ventures
and similar strategies needed between market leader who manage team and others. This allow to
mean that wholesaler are facing ever-increasing rate of orders.
The second issue which is discussed about the overhead cost which increase expenses of
firm and total output by various cost forces. This cost are dimensional changes and create
negative impact in organisation. The cost forces are rent, travel expenditure which is usually
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drive by organisation. This factor is generally approach by firm. It is non negotiable cost it is
reduced by minimize the expenses but do not make it zero due to various factor.
Reflection
From this overall issue I learn and experience about those factor which affect wholesale
and retail firm. I gain experience about there are various factor and key issue which affect the
functioning of wholesaler and retailer. In this sometime political factor, environmental factor,
legal factor, technological factor and many more factor affect smooth functioning of firm. In
which wholesaler and retailer are faced problem (Vitry and et. al., 2020). This problem are
usually concern with manufacturer and business in such way which can create huge loss. The
overhead cost is defined as the extra expense which is not calculated in assets of organisation. In
term of wholesaler and retailer this expenses are pay by itself. So from this I experience these
problem in term of various approach. Overcome from these issue the demand from the
manufacturer side create some complication. So it is essential to coordinate and create good
relationship with the manufacturer to know route and other complication. To reduce overhead
cost (Wason and Wason 2016). It must identify the possible way to reduce these all cost and
create a budget pace overhead expenses.
CONCLUSION
As per the above discussion, issue which is generally arises by number of factor which
affect the wholesaler and retailer to run their business. There are various issue which is faced by
wholesaler and retailer in context with business. To analyse various threat pestle analysis is taken
place to know impact which is negative or positive as per approach of organisation. There are
some impact which affect business political, economical, technological, legal and environmental.
These are the factor which create impact on business of wholesaler and retailer. Thus, the overall
dimension show the impactful session in which experience and find the way to eradicate
situation.
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REFERENCES
Books and Journals
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ended?. Health Affairs, 35(9), pp.1595-1603.
Anwar and et. al., 2019. Integrated financing model in Islamic microfinance institutions for
agriculture and fisheries sector. Investment Management & Financial
Innovations, 16(4), p.303.
Dissanayake and et. al., 2016. Value Chain Analysis of the Sea Cucumber Fishing Industry in Sri
Lanka.
Mechmech and et. al., 2019. Optimal ordering and clearance strategies under demand
uncertainty. IFAC-PapersOnLine, 52(13), pp.583-588.
Mukherjee and et. al., 2016. Modern Trends, Challenges and Opportunity of E-Commerce in
India–An Overview. Challenges and Opportunity of E-Commerce in India–An
Overview (June 29, 2016).
Robinson, A.M., 2020. Exploring Transformational Leadership of the Supplemental Nutrition
Assistance Program: A Qualitative Phenomenological Study (Doctoral dissertation,
Northcentral University).
Singh, G., Kaur, H. and Singh, A., 2018, August. Dropshipping in E-Commerce: A Perspective.
In Proceedings of the 2018 9th International Conference on E-business, Management
and Economics (pp. 7-14).
Vitry and et. al., 2020. Access to Controlled Medicines in Low-Income Countries: Listening to
Stakeholders in the Field. International Journal of Health Services,
p.0020731420906748.
Wason, N. and Wason, S., 2016. Topsy turvy in changing scenarios: A case on chikankari
textile. South Asian Journal of Business and Management Cases, 5(1), pp.99-107.
Zio and et. al., 2020. Cottonseeds and Crude Peanuts Oils Production Technology and the Edible
Oils Sale Conditions in Ouagadougou and Bobo Dioulasso Markets. Journal of
Nutrition and Food Security.
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