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Sanskar
Keen Learner and Exp... • 1y
Characters - a company - A a textile industry - B and some SMEs Suppose A talked to 10 small shops which sells clothes in its city and takes their wholesale order let's say 5 clothes for each and then it takes a small amount of advance money from them for their goods and goes to B which is based in let's say Jaipur and have the capacity to produce say 100 clothes and then A gives the collective order (which is 50 clothes)[5*10 = 50] to B. And because the order amount is large and also A pays B in advance (from the money it had taken from shopkeeper) there is a chance that A receives a discount on it's purchase. Then A distributes the order to the 10 shops it talked in its city at a lower price than wholesalers, (because of the discount it gets while purchasing them from B). And after delivery A gets the remaining amount from the shopkeepers and after taking its small commission pays it to B thus connecting shopowners with B directly Do you guys think this model can work in India?
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