The market being located of a very strategic place and effective distribution of goods and services both on the side of manufactures and the ultimate users of goods through numerous middlemen exist but few sample size chosen in order to obtain an accurate result of the research. As every research project demands statement of the problem this project shall of ours be focusing attention on the role of middlemen from the claim of distribution disrupts, the production and distribution of goods in Nigerian Economy especially in Umbra New Market.
Complain from the manufacturers that wholesalers do not longer discharge their duties effectively. For example, that they do not supply day to day market and competitive information and that they do not carry enough inventories and therefore fail to fulfill customer’s order fast enough, they do not attract high caliber mangers and binging down their own cost and that they charge too much for the service rendered which create to economy.
This is true, purposely because they perform some essential activities or roles in the chain of distribution. The purpose of this project therefore, is to highlight the various activities of the middlemen in ensuring smooth distribution of goods to the consumers, consumer at a time or the other may require certain goods which would have not been available in their vicinity if not for the presence of these intermediaries in the chain of distribution.
Generally, nobody will be able to do or make use of whatever he/she likes at any time, if what he/she requires is not readily available in his/her vicinity to eliminate these problems. The scope of the study will center on the role of middlemen in Nigerian Economy. Y case study. This research also gives suggestion solution to problem based on the findings and the benefit organization desires from the role of middlemen in Nigerian economy to achieve their primary objectives. 5.
This chapter will look at the contributions of various author s with respect to the roles the wholesalers and the retailers play as an the wholesalers and the middlemen buys goods in bulk from the producers and sell them to retailer according requirements, while retailers is defined as those that carry out the last stage of the production for it is the retailers who put the goods in the hands of the final consumers. From my own point of view wholesalers at times are able to sell to consumers directly without the interference of retailers.
To Galore Anymore (1970) A wholesaler is a trader who buy in a large quantities from the manufacturer and sell in a small quantity to the retailers. According to him also, retailer buy goods in a small quantity from the producer and sell to the consumers and sell to the consumers in small quantities (bits) as well. His definition of retailers says that retailers buy in small quantities and sell in a small from manufacturers and sell to consumers. This is not always true because manufacturers are not always willing to sell in small quantities.
It is agued or criticized by (Awe Dud and G. A. Gag 1989 as well as Lealer Anymore 1970) that middlemen take large share of the selling price and that if they were eliminated from the chain oft distribution by the manufacturers, life would seemed better for consumers. They equally stated that middlemen generally like to make excessive gains or abnormal project by placing much value to good or products on a very high and less affordable price to consumers They concluded that the profit margin of middlemen is often very wide.
They added that they also hoard goods: middlemen in an attempt to influence price hoard always these goods there by creating artificial, which automatically pushes up the prices of these goods. Middlemen are always profit conscious. As result of this, they are always geared towards adulterating goods by adding various items in order to increase volume as to et increased sales volume which means more profit to them.
Middlemen are equally be liked to cause inflation into the economy, despite these criticisms of middlemen, some people still believe that they should not be eliminated from the chain of middlemen as intermediaries between the manufacturers and the users of product perform the following functions: A) They break-up commodities in bulk and package them in smaller quantity to meet the need of consumers. This is mostly done by the retailers who know that consumers do not have enough money to acquire needed materials or goods in bulk.
Therefore bulk breaking is done and sales are made in pieces. B) Making goods available to consumers at times and places convenience to them. Middlemen acquire goods manufacturers or produced and display them where consumer can easily reach them at any time they want. C) Stabilization of the prices middlemen stabilizes prices through stock piling in warehouse, middlemen especially wholesaler stock goods in warehouses for sometimes which means supply later, then prices will be stabilized as supply will in most case meet up the demand D) Provision of credit facilities to their customers.
Middlemen help in providing facilities to their customers-wholesalers to provide for retailers to customers. E) They help to convey information regarding the product from consumers to the manufacturers. Middlemen pass information as regards to consumers reacting in the efficient and effective production of goods. F) Provision of after sales to the consumers. Middlemen provide after sales services to their castors like advising them on the usage of the materials, made of conveyance of the goods sold to them in their various residence and also advising them on the right quantity products.
In actual facts, production and distribution of goods can not be efficient without the interference of the middlemen. Some manufacturers over the years and in recent times establish their own retails outlets and shop to ensure that the activities are carried out them selves. It is important at this Junction to stress that the retailing and wholesaling functions whether embarked upon by manufactures or not can not be eliminated from perform in the chain in essence, on society is growing consciously and so, manufacturers will not have every enough time and money to establish retail shops in every hooks and crannies of the society. 3 Middlemen as intermediaries between the manufacturers and the consumers are encountered with various problems in the chain of distribution. These problems occur in the process of caring or performing their functions as regard to distribution of goods in the Nigerian economy such problems include: A) Inadequate transport facilities: Transport system has been a problem in the distribution of goods in the Nigerian economy.
Most goods directly from the field which in there primary condition are perishable it is however important that the transportation system be improve to facilitate quick and efficient distribution B) Inadequate storage facilities: lack of enough storage facilities is another problem relating to the above which is encountered by the middlemen in carrying out their functions.
Some productions (primarily product) like farm products such as cereals, tubers etc. Can not be stored and preserved properly and there for result to wasted during harvest season which make them marble to reach consumers all year round, as in other part of the world where their product are properly processed and stored eventual distribution. C)