Problems of Distribution of Commodities in West Africa and Types of Warehouse

The Middlemen

The middlemen are wholesalers and retailers who are in-between the manufacturer and the consumers in the production and distribution of goods.  These middlemen do encounter lots of problems in the course of the distribution of commodities in West Africa

Reasons or Circumstances that May Warrant the Elimination or By-passing or Omission of the Middlemen in the Channel of Distribution

1. The establishment of warehouse by the manufacturer
2. Employment of commercial travelers or salesmen.
3. When perishable goods are involved.
4. When goods with low rate of turnover are involved.
5. When there is wide demand.
6. When goods are branded.
7. When consumers combine their order and buy in bulk

Types of Warehouses

1. Ordinary Warehouse

Ordinary warehouse is the kind of warehouse that belongs to the wholesaler or rented by him. It is where the wholesaler stores his goods until they are needed and sold to the retailers.

2. Bonded Warehouse

It is a place where government keeps goods whose owners have not paid their required duties. It is the warehouse where imported goods are kept before custom duties are paid on them.

3. State Warehouse

This is a place where goods that are not allowed to enter a country also known as contraband, seized by the Board of Customs and Excise are kept until they are sold on auction to members of the public.

Problems of Distribution and Marketing of Commodities in West Africa

1. Inadequate infrastructural facilities
2. Inadequate storage
3. Hoarding and speculation.
4. Packaging problem.
5. Inadequate transport system.
6. Long chain of distribution.
7. Insecurity on the roads.
8. Inadequate information.
9. Administrative bottlenecks in the collection and handling of goods
10. Construction of good road.
11. Improving the communication system
12. Provision of adequate storage facilities
13. Establishment of more market
14. Reduction in number of middlemen
15. Offering credit facilities
16. Formation of consumer co-operative societies

EVALUATION (POST YOUR ANSWER IN THE COMMENT BOX BELOW FOR EVALUATION AND DISCUSSION)

1. State five (5) roles of government agencies in product distribution.
2. What are the reasons that may warrant the omission of middlemen in the channel of distribution?
3. State five problems of distribution and marketing of commodities in West Africa.