Explain needs, advantages and limitations of assembling.

Assembling starts after purchase of goods. Assembling means bringing together goods of the
same type from various sources of supply to a particular place.

Assembling and buying do not mean one and the same. Assembling indicates concentration of
goods of the same type scattered in small lots. But buying involves a variety of products. Further,
buying involves transfer of ownership of the goods while assembling involves creating and
maintaining of stock of goods.

Need for assembling

Assembling assumes importance in marketing. The need for assembling arises out of the
following factors.

(i) Goods are produced by numerous small manufacturers scattered over a wide area.

(ii) Goods are non-standardised in nature and they vary greatly in quality.

(iii) Supply of goods is seasonal.

(iv) It is necessary for a trader to collect and store goods for the convenience of his customers.

(v) Assembling of different goods offers customers a wide choice of goods.

(vi) Collection in large quantities makes further processing and handlinger of goods economical.

Advantages of assembling

(i) Assembling ensures a steady supply of goods to customers.

(ii) When goods are collected in bulk, standardisation and grading of good become economical.

(iii) Assembling results in saving in transportation costs and handling charges are considerably
reduced.

(iv) Assembling of raw material overcomes the problem of stoppage of production for want of
materials.

(v) Market for goods assembled is widened.

(vi) Assembling helps in getting a variety of goods in the market a reasonable prices.

Problems of assembling

Assembling of goods suffers from the following problems:

(i) The process of assembling is not simple as it may appear. It requires specialised knowledge
about the sources of supply scattered over wide area.

(ii) Where the products are seasonal or irregular, holding of stocks is difficult.