Two-Step Distribution and the Shooting Sports Supply Chain

Posted by NASGW on 12/1/18 10:53 AM

Two-Step Distribution

Getting products in the hands of consumers is the goal of all manufacturers in our industry, but managing inventory, warehousing, and distribution can make that challenging for companies that are focused on developing and manufacturing great products. That is where shooting sports wholesalers come in. The model of two-step distribution has been the industry standard for decades and provides benefits to both manufacturers and retailers. As technology has improved over the years, other industries have moved away from two-step distribution, but this process has remained the method of choice within the shooting sports industry. We thought we'd break down the two-step distribution supply chain to help you understand the benefits at each level.

Innovation Meets Production

At NASGW we have a long list of great manufacturers of all sizes and product types. Each approaches their business a little different, but they are all focused on making the best products they can. Whether it's a handgun, a rifle scope, a magazine, a shotgun shell; a lot of time, effort and craftsmanship go into the production of the product. Once that product is finished, it gets packaged and either goes to a storage facility on-site or gets shipped out to a NASGW Wholesale business to be warehoused and sold to a retailer. Working with a wholesaler allows the manufacturer to sell large quantities of product and keep their focus on manufacturing, eliminating the need for a dedicated sales staff and logistics team. The wholesaler fills that role. 

Wholesale Makes Everyone's Live Easier

We already mentioned the logistical advantage that wholesalers provide to their manufacturer partners, but there is more. Wholesalers are uniquely positioned to understand precisely what is going on in the marketplace. Since they are the warehousing and sales force for the vast majority of sales within the industry, they see first hand where the demand is and what products are moving within the supply chain. That business intelligence moves up the channel and back to the manufacturers. Their partnership with the wholesaler is so much more than a place to sell their products. Manufacturers rely on their NASGW wholesale partners for sales and inventory data, and marketplace insight to help them create better products. 

On the retail side, wholesalers are the one-stop-shop. They provide a stocked warehouse where product orders can be placed and received on short notice. Many wholesalers also offer credit terms to help retailers maintain their cash flow. There's no need for retailers to purchase large quantities when they can have product in-hand in a relatively short amount of time, this helps retailers from getting overextended and puts the risk on the wholesalers. NASGW Wholesalers maintain a highly effective sales staff with dealer relationships throughout the country, helping products get where they need to go. Wholesalers also provide a long list of services, which include product education, training, marketing, and sales strategies to help retailers sell more. They indeed do make the lives of manufacturers and retailers easier. 

Where the Rubber Meets the Road

When it comes to the shooting sports distribution channel, the tens of thousands of retailers and dealers are the boots on the ground. They are the ones helping consumers find the right products and answering questions. NASGW wholesalers go to great lengths to support their retail partners to ensure they are equipped with the knowledge and resources to keep the rest of the supply chain moving. It truly is a team effort when it comes to putting products in the hands of the consumers. The partnerships at each level are paramount to keeping everyone profitable. Consumers rely on the retailers to guide them in their purchases. Retailers rely on the wholesalers to get them the products they need on time. Wholesalers rely on the manufacturers to keep their warehouses full, and the manufacturers rely on everyone to keep their products moving.

To learn more about the benefits to two-step distribution, we encourage you to contact and NASGW Wholesaler to understand how they can make your life easier.

Tags: Retailers, "2-step Distribution"

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