The wholesaling industry is part of the logistics sector, represented by the Skills for Logistics Sector Skills Council, which also includes: air freight; road haulage; storage and warehousing; freight forwarding; postal services; and couriers. Logistics is the movement and supply of all goods (or freight) from raw materials, through all stages of the manufacturing process to the delivery of the finished product to companies and consumers. This is known as the ‘supply chain.’ Nearly 2,320,000 people work in the logistics sector, which accounts to 8% of the UK workforce. It has been estimated that the logistics sector is worth £86.54 billion to the UK economy.
The role of wholesaling is to supply goods to trade and business customers for whom dealing directly with suppliers is not feasible or practical. Wholesalers enable small traders to buy as much, or little, as their businesses need by buying in bulk and selling on by case loads. There are three main types of wholesale company:
- Wholesale merchants – who buy and sell merchandise on their own account, they generally operate from warehouse or office locations and distribute from their warehoused stocks or arrange for the shipment of goods directly from the supplier to the client.
- Wholesale agents, brokers and commission agents – who buy and sell merchandise owned by others on a fee or commission basis, they generally operate from an office location. This group includes business‐to‐business electronic markets that use the internet or electronic data exchange to facilitate wholesale trade.
- Manufacturers’ sales branches and sales offices – which market and sell manufacturer’s products mainly to retailers and industrial users, usually coordinating distribution without handling stock themselves.
Key facts:
- There are approximately 700,100 people employed in the UK wholesale industry, in 124,700 workplaces.
- 41% of the logistics sector workforce is employed within the wholesale industry.
- Over 80% of wholesaling workplaces employ only 1 ‐10 people.
- 23% of all wholesalers specialise in the sales of household goods.
- Wholesale employs a much greater proportion of women than the other logistics industries.
- A large proportion of the industry workforce is self‐employed.
Jobs in the industry range from: sales manager, sales assistants, marketing manager, warehouse assistants, branch manager, van driver, forklift truck driver, LGV driver, buyer, stock control clerk, transport and distribution clerks, transport and distribution managers.
National and regional data
East Midlands – 156,600 employees work in the logistics sector in this region. Of these 62,800 people work in wholesaling, which equates to 40% of the logistics workforce in the region.
East of England – 186,700 workers are employed by the logistics sector in the East of England. 75,600 of these individuals work in wholesaling. This is 40% of the logistics workforce in the region.
London – 178,800 employees work in logistics in London, of which 75,200 work in wholesaling. This accounts for 42% of the logistics workforce in the region.
North East – The logistics sector employs 55,000 workers in the North East, of which 24,100 are employed in wholesaling. This is 44% of the logistics workforce in the region.
North West – 193,400 are employed in the logistics sector in the region, of which 73,600 are employed in wholesaling. Wholesaling employment accounts for 34% of the logistics workforce in the region
South East – 256,300 employees work in logistics in the region. Wholesaling companies in the region employ more people than in any of the other English region. The wholesaling industry employs 98,300 employees, this equates to 38% of the logistics workforce in the South East.
South West – 135,100 employees work in the logistics sector in the region. Of these 61,500 people work in wholesaling, which equates to 46% of the logistics workforce in the South West.
West Midlands – The logistics sector employs 187,500 workers in the West Midland. Of these, 79,100 people are employed in wholesaling. This is 42% of the logistics workforce in the region.
Yorkshire and the Humber – 158,100 workers are employed by the logistics sector in the region. 66,600 of these individuals work in wholesaling. This is 42% of the logistics workforce in the region.
Northern Ireland – There is an estimated 16,000 employees in wholesaling, accounting for 52% of the logistics sector, in around 3,635 workplaces.
Scotland – There is an estimated 45,600 employees in the wholesaling industry, accounting for 41% of the logistics sector, in around 7,700 workplaces.
Wales – There is an estimated 23,900 employees in wholesaling, accounting for 40% of the logistics sector, in around 4,500 workplaces.
[N.B. Data derived from Annual Population Survey, 2008, Annual Business Inquiry, 2007 and Inter‐Departmental Business Register, 2007.]
