The stockless dealer model

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Despite various government initiatives to help free up working capital and support investment in new technologies, it still remains to be seen how far funds are helping companies introduce profitable business processes to replace outdated legacy equipment and systems.

As resellers look for ways to streamline business practices and improve cashflow, stockless dealing can help you stay afloat in the challenging marketplace and keep up with larger competitors. Stockless dealing can also help broaden your geographical reach and customer base by removing the constraints of traditional delivery systems.

Removing stock holding will have an immediate effect on balance sheets, quite simply by increasing profitability through the reduction of costs. Stock that sits unsold in the storeroom costs resellers across the country millions of pounds in operational costs from lighting and electricity to rent and in some cases transport fees.

By making logistical processes as efficient and cost-effective as possible, stockless trading simplifies your business model. Stock is held at the source with the supplier, rather than being delivered to you and held in a storeroom, until it is ready to be shipped back out to the customer. All stock is held in distribution centres, meaning your stock levels can be reduced to an absolute minimum.

Delivery is a key area which costs time and money, both on operations and packaging costs. The delivery process for stockless dealing is very efficient as products can either be delivered to you in your normal delivery, already packed for onward distribution to your customer or can be sent directly to your customers via an independent national delivery service. No stock is sent out unless it has been ordered by your customer so there is no stock which has not been accounted for.

This will allow you to extend your geographical reach further than you are normally able to and compete with larger organisations. Stockless dealers can deliver nationwide, broadening your customer base beyond your traditional reach.

The stockless model means the space restraints of a stockroom are no longer an issue. Instead it provides a low risk way to diversify and broaden your product range without the worry of stock sitting in the storeroom unsold.

Any savings can then be reinvested into your business as well as passed back to customers. At Spicers alone, 35 percent of our sales now come from stockless dealers, demonstrating how the model is become a viable alternative to traditional stock rooms. Stockless dealing is simple to implement and can dramatically reduce your operational costs. It provides an alternative to outdated logistical systems and can help you free up more money to support other areas of your business and help secure its future.

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