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Producer-Agent-Wholesaler-Retailer-Consumer



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Producer-Agent-Wholesaler-Retailer-Consumer
: In this method, the 
producer hands over his entire output to the sole selling agent, who sells 
his goods to the wholesalers who in turn sells them to the retailers and 
who in turn sells them to the consumers.
Producer 
Agent 
Wholesaler Retailer Consumer 
This type of channel is very popular in agricultural marketing and it is 
the longest route of distribution.


111
5.4
I
MPORTANCE OF 
W
AREHOUSING 
-
 
T
YPES
 
The commercial system of any country depends on three major systems, 
viz. trade, transport and warehousing. Storage of goods is usually done at a 
place is called “Warehousing”. It adds time utility to the goods by making them 
available at a time they are required. There is always a time gap between 
production and consumption. 
For example : The supply of food grains is high during harvesting 
season, and the total output cannot be consumed immediately. 
So, substantial part of output is kept aside for future demand. It is 
similar in the case of companies products too. The process of manufacture of 
goods is continuous but they are not consumed immediately. Therefore, there is 
every need to preserve the goods till the period of consumption. 
The term warehousing is a combination of two terms, i.e., “ware” and 
“housing”. The word “ware” refers to goods. Therefore warehouse can be 
defined as the “Place suitable for preserving the goods and warehousing is the 
activity involving storage of goods”. 
Importance of warehousing : 
1)
To assure steady supply
: Warehousing enables stock of agricultural 
produce and industrial goods to be kept at safer places so that a steady 
supply of goods is assured to consumers. Natural scarcity and shortages 
can be avoided if storage facilities are available to the farmers and 
industrialists. 
2)

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