LUBBOCK, TX – Efforts to “cut out the middleman” in cotton and apparel supply chains often increase risk rather than reduce costs, according to industry veteran Bob Antoshak. Removing wholesalers shifts inventory, financing, and execution burdens onto participants least equipped to absorb them.
Antoshak notes that wholesalers standardize thousands of smaller retail transactions, compliance requirements, and delivery schedules into manageable programs for mills and manufacturers. Without that function, brands face higher administrative costs or abandon smaller accounts altogether, narrowing market access.
For retailers, especially independents and regional chains, buying directly from factories often means longer lead times, larger minimum orders, and tighter payment terms. Those constraints reduce assortment flexibility and discourage replenishment, weakening overall cotton demand.
Factories face increased volatility when wholesalers disappear. Wholesalers smooth production cycles by aggregating demand across many buyers, helping keep lines running even when individual accounts pull back. Without that buffer, factories become more dependent on a handful of large customers, increasing downside risk across the supply chain.
Farm-Level Takeaway: Removing wholesalers often reduces cotton demand stability, not costs.