As mentioned before, the sōgō shōsha have two fundamental business models: Their traditional, core business model as trader, supplier, wholesaler and distributor of a vast array of goods and materials upstream and downstream in the supply or value chain, and as an organizer of large-scale infrastructure projects.
Integrating the supply chain
To better understand the sōgō shōsha's traditional, main business as a super supplier and distributor, one only has to think of the supply chain or value chain, or what some call the flow of trade. They all mean the same thing. Simply, every product has a supply chain, from the raw materials that are processed into intermediate materials and semi-finished goods upstream, which in turn are used to make a finished product midstream, then to the wholesaler and finally the retailer and consumer in the downstream distribution process.