NARRATOR: Getting products from manufacturers to customers requires an efficient supply chain. A supply chain is the system involved in moving a product or service from manufacturer to the customer. The supply chain consists of manufacturers, distributors, wholesalers, and the retailers. A functional supply chain helps manufacturers distribute their product efficiently to meet the customers' demand.

A distributor buys products or product lines from the manufacturers, warehouses them, and resells them to the wholesalers. A wholesaler is an intermediary entity that buys in bulk and sells to retailers, rather than to the customers directly. The retailers are the end of the channel in the supply chain. They sell goods or commodities directly to the customers.

Most retailers operate in locations close to the customers and sell products from several manufacturers. Distributors and wholesalers usually sell products from few manufacturers, with some selling from just one manufacturer.

Let's take the Indomie brand, for example. It is manufactured by Dufil Prima Foods PLC. Its distribution is managed by Multipro Enterprises Limited and its distribution partners to wholesalers. The wholesalers normally found in large markets only sell in cartons. These wholesalers sell to retailers, which are those shops and superstores like Shoprite which you walk in to purchase a pack or two of Indomie.

As a business owner, based on your capital or goals, identify which role you want to play in the supply chain and equip yourself with the resources to help you excel. This content was developed for the Lagos State Employment Trust Fund by DIYlaw.