Novak, Inc., is a wholesaler in business to sell engine parts for cars. It recently installed a website order system. The system allows a customer (such as a car repair shop) to order inventory parts from anywhere in the United States. Novak can ship directly to the customer.
Larry Novak, president of Novak, Inc., decided to sell more than car engine parts. His plan was to sell technical expertise to provide his customers who own repair shops with information pertaining to car engine parts. With recent technological changes and an increased number of imports entering the United States, repair shops must now handle many different car engine parts. Larry placed his company in a position to be more competitive in the industry by emphasizing information rather than price.
His website offers numerous product catalogs and handbooks that provide extensive, detailed descriptions and diagrams of every transmission, as well as specific parts needed to complete the repairs. With the staggering selection of transmissions in use today, shops cannot begin to keep all the essential parts.
To help alleviate this problem, Novak has organized a national computer network linking its regional offices around the country. It provides information on the status of in-stock inventory, orders expected to come in, and shipping schedules for parts expected to go out. With this information, salespeople can access data on the availability of a product anywhere in the United States and have it shipped to them directly
Questions
1. Is Novak a wholesaler or a retailer?
2. What is the advantage that Novak is now providing to its customers?
3. Is Novak considered an intermediary? How many levels do Novak's channels of distribution include?
4. Does Novak have a quick distribution process? If so, how?