Effectiveness of the Voluntary Chain in Regional Commerce and Distribution:

Abstract

This study examines the commerce and distribution between production and consumption, with a particular focus on medium- and small-scale wholesalers and retailers in the regional market. We suggest that wholesalers support declining regional retailers, develop, and activate regional commerce and distribution as a whole through a voluntary chain. Given the recent transition of both wholesaling and retailing sales, the condition that commerce and distribution fundamentally link production and consumption differs from the normal situation. While large-scale retailers and wholesalers aimed at the national market have reduced their number of establishments and sales, small-scale retailers and medium-scale wholesalers have tended to increase their establishments and sales. As a middleman in distribution, small-scale retailers and medium-scale wholesalers mainly have linkage relationships with each other and overall have an increasing trend in the declining commerce and distribution. Cosmos Berry’s activities are a typical case study that explains the role of Voluntary Chain Headquarter’s support to small-scale retailers in the regional market. In terms of activating distribution flow, Cosmos Berry’s has advantages of bundling, hub & spoke, and types of operation through different kinds of business, and these lead to Cosmos Berry’s activating the distribution flow optimally.

Keywords

• voluntary chain
• distribution flow
• wholesaling
• regional commerce
• linkage of trade between retailing and wholesaling