Wholesale can be an efficient sector

Sir, Steve Parfett raises some interesting points regarding the efficiency of the wholesale supply chain (Saturday Essay, 5 November). Wholesaling is considered, as Mr Parfett says, a simple, low-cost business – and thus at the mercy of thinlystretched supplier resources.

Simple and low-cost does not mean irrelevant, though. There are many positive aspects to such a state – as long as efficiency is also recognised. Logistics and supply planning are an intrinsic part of the multiple supply chain offering focused on consumer delivery; in wholesale, it is often just seen as trucks arriving at the back door.

Wholesalers and suppliers could do so much more with the insight at their fingertips. The data is there to help create an open framework of logistics, based on a common view of stock, insight surrounding product demand, marketing and promotional information.

It is not unfair to say the wholesale sector is generally an easy target and bears the brunt of poor supply. To change the perception of this sector as inefficient will not be an easy challenge, but it is without doubt achievable.

Mike McGee, director, Insight Offsite