Why are retailers often considered the most important link in the supply chain?
A) They connect customer with vendors who supply merchandise
B) They set pricing strategies based on cost of goods sold
C) They receive discounts from suppliers
D) They can best gauge customers' wants and needs
E) They can engage in both horizontal and vertical integration

Question

Quizplus · Accepted Answer

Retailers are the link between the customers and the suppliers who provide merchandise. As such, they are able to understand what the customers want and need, and they can communicate this to the suppliers. This helps to ensure that the right products are produced, and that they meet the needs of the customers. Additionally, retailers have the ability to set pricing strategies based on the cost of goods sold, which can help to ensure that both the suppliers and the customers are satisfied with the price of the products.

Why Are Retailers Often Considered the Most Important Link in the Supply