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How Excellent Distributor Stockholding Can Make Your Business More Profitable

13th Mar 2020

The role of the distributor consists of many strands and can benefit businesses in a number of ways. For suppliers, it brings with it a wider and more knowledgeable route to market than is often possible by themselves. For installers, distribution is key to ensuring they can meet their customers’ needs and simultaneously increase profits and maximising efficiency. And a key area to this involves the stockholding of the chosen distributor.

Multiple or single distributor hubs – What does this mean for efficiency?

Distributors can hold stock in different ways, but is it more efficient to have all products in a central location, or spread across a network of smaller distribution hubs? In the security industry both options are available from different providers. Many installers choose to buy from a hub local to them or their job and collect products as and when they need them. But is this really the most efficient way? Having all stock in a single, central location – with excellent transport links and reliable couriers – really can simplify the delivery process and make it work in a more efficient manner than most would realise.

Consider a scenario – you want to order a range of different products for an upcoming job. In a multiple branch network, these products could be held across several locations depending on availability. This can result in different delivery or collection times, multiple invoices from each of the branches, and a whole lot of unnecessary packaging that will have to be handled and responsibly disposed of.

With the nature of the security industry being a largely reactive one, especially in the intruder detection market, it is also important that an installer can get all the necessary products they need quickly and simply. By using a distributor with a single, highly stocked warehouse, real efficiencies can be made. No more multiple invoices or split deliveries to deal with. No more disposing of unnecessary packaging or wasting time and fuel driving between multiple collection points. Instead, one delivery at a specified time with everything you need for your installation.

Split deliveries and multiple collections – What are they costing you?

It’s worth understanding what a scattered distribution system can do to your business from a financial point of view. It is estimated that the cost of receiving a single delivery is around £25. This may not seem like a great deal, but it quickly adds up.

For example, if you were to place 200 orders a year and all were received as split deliveries – at least two per order – then the cost to you rapidly goes from £5,000 to at least £10,000 per year.

However, ensuring deliveries arrive promptly and completely can do more than just save you money. Through deliveries arriving as ordered, you can also minimise the time taken to process the delivery of goods and re-allocate this time to more profitable ventures to help grow your business. This offers the potential for increased profits and greater business efficiency, or at the very least a happier workforce.

You can also save your business even more time by using a distributor that offers delivery services to any agreed location, not just to your premises. Through taking advantage of such services you gain the ability for engineers to take in deliveries on site allowing them to start work immediately, therefore improving efficiency and having the potential to improve profits.

How does great stockholding help you achieve your goals?

Distributors that invest heavily in large amounts of stock do this to ensure you can keep your promises to customers whilst maintaining business growth and positive cash flow. Getting the products where and when you need them allows engineers to productively spend their time on site, ensuring the job’s completed on time and to budget. In this way it can also reduce installation times and allow you to operate more efficiently. A reliable supply-chain makes you more dependable as a partner to your clients, and this in turn creates loyalty, encourages repeat business and a great base on which to attract new customers.

The Norbain Advantage

Norbain has the largest stockholding of Intruder, Video and Access Control products in the UK & Ireland. So, we’re ideally positioned to help you make your business as effective, reliable and profitable as it can be.

With our next day delivery guarantee to any agreed location and dedicated sales representatives to help you organise the details, you can reply on us for all your security needs.

Whether you’re a small-scale fitter or a giant in the industry, save yourself and your business any delivery-related hassle with our industry-leading distribution strategy. You’ll reap the rewards in no time at all.