The success and efficiency of a wholeseller depends upon the organization of that business. Although the wholeseller doesn't have direct contacts with the consumers, even then he must organize the internal working of the business by careful pre-thought. On the internal organization of the wholesale trade, there is the impact of the form of business, its quantum or size, number of its customers and the nature of the products to be sold. While resorting to the internal organization of the business of the wholeseller, the general principles of organization must certainly be borne in mind. The internal organizations of different businessmen are different from each ether.
The internal organization of the wholeseller could be understood by dividing it into the following sections
Administration Department
The administration department is an important department of a wholeseller's organization. We may divide the administrative department into the following sub-departments or sections:
(1) Accounts and Finance Department. This section maintains the accounts of various activities of the organization. In various departments, maintaining .the balance from economic angle is also the function of this department.
(2) Correspondence Department. By this department, all the relevant activities pertaining to the correspondence are taken up.
(3) Personnel Department. By this department, all the necessary activities pertaining to the employee’s administration are undertaken. -
(4) Record Department. The function of this department is to maintain the record to various departments.
(5) Statistics Department. Its function is to undertake the market research and collect various data.
Operating Department
This department could be divided into the following seven sub-departments or section:
(1) Purchase Department. The purchase department is an important organ of the wholesale business-house. In, this department, all the activities are undertaken under the supervision of the purchases manager. The success of the business depends upon the efficiency of the purchase manager. He must be fully conversant with the total market so that it could easily be ascertained as to how much of the goods have to be purchased and from where. The following are some of the main activities or the functions of the purchase department:
i.) After ascertaining the demand of the commodity, the purchase manager should very carefully determine the quantity of the good to be purchased.
ii.) While prescribing the quality of the goods to be purchased, the manager of the purchase department must certainly keep in view the taste and the fashions of the consumers or purchasers.
iii.) The purchase manager is also required to assess the sources through which the products have to be obtained. While determining the sources f(r acquiring the goods, help must be sought from the advertisements, price-lists and catalogues, and business magazines.
iv.) The purchase department is also required to determine the conditions according to which the materials are to be purchased.
v.) The purchase department must try to procure the information from time-to-time regarding the changing conditions of the market. Sometimes, the prices so frequently change that with the slightest slackness, big loss might be sustained.
vi.) The purchase department must remain in frequent touch with the latest business agencies and manufacturers so that they could gather information regarding the new products.
vii.) The purchase department must also go on gathering information regarding consumers' tastes, from time-to-time.
viii.) The purchase manager maintains the printed order books with him for placing the orders. While putting up the orders, there must be mentioned in the letter of order, the order no., the quantity of goods required, the quality or brand, variety, the brand price, the conditions of payment, the method of delivery and time, etc.
ix.) After placing the order, the commodities are received. The goods received must be tallied or compared with the invoice.
(2) Sales Department. The sales department occupies great importance in a business organization. The reputed organizations separately set up sales department in their undertaking. The functioning of this department is looked after by a sales manager. For achieving the maximum profits, the sales manager must organize this department most scientifically. Really speaki-9, the profit-earning capacity of the wholesale business 4epends mainly upon the efficiency of the sales department. The following are some of the main, functions of the sales department :
i.) The main function of the sales department is mostly to procure the orders.
ii.) Appointing the sellers too is the function of this department.
iii.) The sales department also appoints the sales agents and representatives, The main activities of the sales agents are to create new customers, contacting the customers, and to satisfy them.
iv.) Some of the wholesellers separately maintain an advertisement and publicity section.
v.) The sales department also determines the sales policy. Within the sales policy, the main matters to be determined are the scope of the market, the packing arrangements existing at any time of the products being sold, conditions pertaining to the payment, the credit policy matters, etc. In the success of a wholeseller, the-sales policy occupies an important place. Hence, the sales policy must be very carefully determined.
vi.) The sales department also undertakes the functions of preparing the invoices of goods, getting the goods loaded, issuance of the forwarding note and its dispatch, etc.
(3) Storing Department. This department, on the one hand, undertakes the storing of the goods purchased after having compared them with the invoices, and on the other, it also meets the orders for the supply of the goods, as received by the sales department.
(4) Publicity Department. In the modern era, the publicity occupies much significance. For the successful conduct of his business, every businessman is required to resort to the advertisements. Some of the wholesellers don't maintain a separate publicity department but they rather combine it with the sales department. This department undertakes all the essential activities concerned with the advertisements.
(5) Packing Department. Some of the wholesellers, in case of riot much of the packing work, combine this department with the stores department itself. If the task of packing is excessive, a packing department too is maintained separately. All the packing activities are undertaken by this very department.
(6) Transportation Department. The businessmen who undertake the business of heavy or perishable commodities, also maintain a separate transport department in their business-house. By this department are undertaken all the necessary activities related to the transporting of products.
(7) Cash Department. By the cash department, all the functions pertaining to the receiving and paying of the cash or money, are undertaken.
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