 Gee, we are going to discuss now retailer's role in the sorting process. So first of all, we all need to understand that why there is a need of sorting process. So as we all know, that with the liberalization, privatization and globalization, as well as borderless economies, we all know we need to understand that there is a gap between manufacturer and the consumer is increasing. And gradually you will see that gap is increasing day by day. And because of the fact, if you will see that one reason is that, that producer is sitting in one country and on the other side, the consumer is sitting on the other side of the country. This is one part. In our case, you can well understand that in many cases, in many situations, the products you receive are from different countries, which means a product has been made in Europe. You will get that particular product in Pakistan or maybe the product is produced or manufactured in Pakistan, but you will get that product into Europe or any other country. So this is one of the major reasons. Second part is that majority of the manufacturers also prefer that they do not have directly contact in terms of sales with the customers, that they try to have someone in between the whole transaction. So if you see who can be in between the whole transactions, so there can be the intermediaries. Who can be the intermediary? You all know that, that one kind of intermediary is the wholesaler and then it can be a retailer. It can be, in some cases, a broker, a commission agent. So these are different kinds of intermediaries which normally a manufacturer is looking for, that he can contact through them to the end consumer. And then you will see that that is the core objective of to give the products to supply the products to the end consumer. Now we know to understand what is the sorting process. Sorting process, if you will see that, that manufacturer is normally dealing in a variety of goods and then what he is looking for, that from these variety of goods, he need to sell these goods to the intermediaries, more than one intermediary, normally more than one wholesaler. And once we say more than one wholesaler, then retailer would do is that they buy from the wholesalers and then these retailers sell to the end consumer. So in this case, retailers buys from multiple wholesalers and these wholesalers normally buy from multiple manufacturers. So actually there is not even a single manufacturer, there is not even a single wholesaler. There are multiple wholesalers, there are multiple manufacturers. And they all normally contact the retailer or what the retailers do in this case, they sell these products to the end consumer. So this whole phenomena where the product is reaching to the end consumer with this channel is called sorting process in the world of retailing. Let me explain you in this diagram, which will really help you in understanding the whole process. So for example, there is manufacturer brand A and then is a manufacturer of brand B. So for example, manufacturer of brand A is selling its product to the wholesaler X and that wholesaler is selling its product to the retailer and retailer is selling to the end consumer. Let's say an example of manufacturer B. So manufacturer B is contacting of course to the again to the wholesaler X to the same wholesaler which means now that particular wholesaler is having the products of two manufacturer and then these wholesaler is selling to the retailer and that retailer is selling these products to the end consumer because the consumer can be of the brand A or of the brand B. Let me give you some other example also. So we have in the list manufacturer brand C also manufacturer brand D also E and F you can also see which means there can be multiple manufacturers and they can be for example, one manufacturer can be for example of beverages, one manufacturer can be for example of juices, one manufacturer can be of maybe grocery, one manufacturer can be of oil. So maybe the different customer needs have been met accordingly for by these manufacturers. So these manufacturers normally will deliver to the wholesalers wholesalers X, Y and G to the different wholesalers and these different wholesalers will provide these products will sell these products to the retailers and then these retailers will sell to the end consumer as per the need of the consumer if the consumer is looking for let's say brand A he will get that brand A from that particular retailer if another consumer let's say he is looking for brand B or maybe the same customer is looking for brand B then in this case you can get that particular product also from that retailer. So we have here example if you can see all customers here. So different customers different needs of different brands but their needs have been fulfilled normally by this particular retailer which we have here mentioned and you can see that particular retailer. So this is the whole sorting process in which the product is moved from manufacturers to the wholesalers or different wholesalers move to the retailer or then from that retailer move to different customers. Let me take you now to the benefits of this sorting process. So first of all we have the benefit for the manufacturer because manufacturer in this case it will be most effective for him if it goes through this whole process because if for example he is going to contact directly to the customers then in this case it is less effective for him with respect to time or resources in both the cases. So the most effective thing for a manufacturer is that he follow this sorting process same as the case it is also beneficial for the end consumer also because customer is looking for one window solution. Customer is looking for everything under one roof. Customer is looking for not particular a product or a brand he is looking for a solution. So once he will visit the retailer he will get all his products from there. So it is the easiest thing it is the one of the core benefit of the sorting process to the end consumer that these customer will get everything from that particular retailer. Let me give you one example for it so that you can understand the whole concept as we have discussed for the sorting process. So for example any any retailer I am giving you an example here for the US we can talk about any example in Pakistan also that an average retailer is normally selling 15,000 SKUs. The retailers big retailers in Pakistan is selling almost 15,000 to 20,000 SKUs. And these SKUs if a customer are from normally if I am talking about for the US is normally 500 suppliers to 800 suppliers. In Pakistan is also because is normally unorganized market so you will find average 700 suppliers to 900 suppliers. So imagine if 700 manufacturers or 700 to 900 manufacturers are approaching one single customer. So normally in this case because retailer knows retailer has his importance here because a big retailer is giving 15,000 SKUs or 20,000 SKUs to a particular customer he is giving him a choice to choose between different brands between different products between it is all set of needs should be sure fulfilled because of this. So we need to all understand with this example that the sorting process is actually helping both is helping also the consumer and is also helping the manufacturer because manufacturer cannot go and directly contact all these customers which are available in the country or in the other countries. However if the retailer is available that retailer can really approach these customers and can really sell manufacturers all manufacturers products all supplier products at its one place which is the retailer place. So this concept will really help you in understanding and this example in front of you will really help you in understanding the whole concept.