Manufacturers’ sales branches and offices- wholesaling operations conducted by sellers or buyers themselves rather than through independent wholesalers. Separate branches and offices can be dedicated to either sales or purchasing.
“Manufacturers' sales branches and offices are owned and operated by manufacturers but are physically separated from manufacturing plants.”
Manufacturers’ sales branches and offices are the 2nd largest form of wholesaler in terms of total sales as well as the number of employees. This term’s abbreviation is MSBO. Merchant wholesalers own the goods, distribute, and perform other functions. MSBOs perform wholesale operations much like the merchant wholesalers, but they do so only for their owning manufacturer which operates them. The sales branches of the manufacturers hold stock of goods but sales offices do not.
Generally, MSBOs run the largest operations among merchant wholesalers, agents, and brokers. MSBOs had around 7 times the sales per establishment and 2.5 times the employees per establishment, on average as did merchant wholesalers in 1997. Agents and brokers have the fewest employees and the lowest sales of the three types. Wholesale agents and brokers initially act as intermediaries, making arrangements for sales between two parties.