So you’re thinking about how to best manage your inventory. To bring in a third party or not to? What if owning inventory ourselves turns out to be a waste of money? Are stock and inventory the same thing? What if we over-purchase? What if I mess it all up and get uninvited to the holiday party?
You’re not going to mess anything up by investing in inventory as long as you have a partner who knows what they’re doing and wants what’s best for you. Unlike stock, which entails the goods readily available for sale, inventory includes both finished goods and unfinished components that you’ve purchased for future sales. And unlike what’s widely advertised, many distributors will hold you responsible for unused inventory should you change your branding or program timeline, even if they “front” the cost. Owning your inventory gives you insights that would otherwise be lost if you relied on a lot of those big distributors to handle your products for you.
Let’s dive deeper into the 6 major advantages of owning your inventory and placing it in the hands of a trustworthy partner.
Control and Flexibility
Owning your inventory gives you ultimate flexibility to respond to changing market conditions, plus you have control over damn near everything, like pricing, promotions, bundles, and channel distribution. With total control, you can easily pivot your strategy without needing to negotiate with a distributor.
By owning inventory, you save money. It’s that simple. You keep the full margin on products sold rather than paying needless distributor fees. That additional margin can help offset the capital outlay needed to pull off a successful commerce program.
A huge perk of inventory ownership is clear visibility into exact unit costs upfront. There are no surprises or hidden fees. You’re never left wondering, Am I being screwed? You can accurately manage inventory budgets and forecasts, plus your ‘numbers guy’ will thank you. Finance teams prefer this model because it provides predictable accounting treatment.
When you own your inventory, you decide who stores it and ships it. We heavily invest in our staff and infrastructure to provide a white-glove service exclusively for your business. From key account managers to experienced fulfillment teams, we become an extension of your organization. We’re creative problem solvers eager to help you succeed and like any great team, we have aligned incentives — we only make money when you sell products profitably.
Demand Planning and Replenishment
With direct control and visibility into your inventory, you can fine-tune demand forecasts and optimize future purchase orders. Not only does this reduce waste (‘cause, you know, sustainability is important to us), it also prevents unanticipated shortages. You buy what you need, when you need it.
Compliance and Risk Management
The best part about this setup? We do the dirty work! We handle all the regulatory, compliance, and risk management complexities associated with moving physical products around the world. You avoid liabilities related to loss, damage, or tax collection, and as always, we optimize logistics and shipping to lower your landed costs.
To sum it up, owning your inventory allows you to maintain control over your brand while outsourcing the complex stuff to an expert partner you can trust. Let us handle the heavy lifting so you can focus on what matters most: delighting your customers. Oh, and securing that invite to your holiday party.