2.1.2.3 Improve Exchange Efficiency
Completion requirements
Producers supply narrow assortments of goods in large quantities. Consumers demand broad assortments of goods in small quantities.
Consider this example using three Canadian jean manufacturers.
Each of the three companies produce a narrow range of goods in large numbers. Each of the three consumers wants to choose a small number of goods from a broad range. To meet the supply and demand without wholesalers requires NINE contacts. (Note: Without intermediaries, the customer and end consumer are the same).
Consider this example using three Canadian jean manufacturers.
Image Source: ADLC created
Each of the three companies produce a narrow range of goods in large numbers. Each of the three consumers wants to choose a small number of goods from a broad range. To meet the supply and demand without wholesalers requires NINE contacts. (Note: Without intermediaries, the customer and end consumer are the same).