2.1.2.3.1 Wholesaler Efficiency
Completion requirements
Now, let's reconsider the previous example, and add one wholesaler (intermediary), who is providing goods to three different customers. (Note: When intermediaries are part of the channel of distribution, the customer isn't always the end consumer.)

If you imagine this exchange process in hundreds of thousands of wholesaler transactions, you can see the process efficiency that would result.

Image Source: ADLC created
Each of the three companies produce a narrow range of goods in large numbers. Each of the three customers wants to choose a small number of goods from a broad range. To meet the supply and demand with one wholesaler requires SIX contacts.

Image Source: ADLC created
With an intermediary, six contacts are required for three sales.
Without an intermediary, nine contacts are required for three sales.
Image Source: ADLC created
If you imagine this exchange process in hundreds of thousands of wholesaler transactions, you can see the process efficiency that would result.