Please provide actual difference between Distributor & wholesaler in Pharma Sector.
Distributor and Wholesaler are two corresponded words. we use both word for each other. There is very difficult to differentiate between these two. Distributors and wholesalers are an important part of Distribution Channel. Both are not in direct contact with consumers. There is same procedure for set-up wholesale and distribution in India But still we can differentiate between these two.
Distributors are upper part of distribution Channel. Where as Wholesalers are Lower parts of Distribution Channel. A distributor deals directly with company or CnF and purchased goods directly from them. Distributors stock the goods in its Godown. Whereas wholesaler deals with Distributors. They purchase goods from Distributors and sell to the retailers.
Distributors don’t supply directly to retailers i.e. Chemist/Druggist/Pharmacies. Distributors will supply medicines to wholesaler or stockists. Wholesaler will supply products to retailers. Both deals in distributing, stocking and supplying of goods, only customer type is changed. We can say if a wholesaler is supplying to wholesalers then he is a distributor but if a wholesaler is supplying to retailers then he is a simple wholesaler. but there is no restriction of work they can do. They can do opposite work at many circumstances.
Distributors deals in large quantity whereas wholesaler deals in small quantity. Area covered by distributors are large whereas area covered by wholesalers are small. For small cities we can’t differentiate much in both distributor and wholesaler. Distributor do the wholesaler work and wholesaler do the distributor work.
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