A lot of distributors who say they don’t have inventory actually do.
Everyone except for the pure 100% dropship distributor holds inventory. Even distributors who hold inventory for just a moment before they send it on to the end buyer are holding inventory.
Whether you own it or someone else does. Whether you hold it or someone else does. It’s inventory. And it needs to be managed. Find software solutions capable of handling the full inventory spectrum.
Inventory needs to be controlled and the warehouse needs to be managed.
Some distributors have a warehouse full of inventory but don’t consider it inventory because someone else owns it (the distributor may be holding it on consignment, for example). Just because someone else owns it doesn’t make it something other than inventory.
Some distributors do own their own inventory but don’t consider it inventory because they don’t physically hold it themselves. A third-party fulfillment house or warehouse may hold it. Just because someone else holds it, however, doesn’t make it something other than inventory that needs to be controlled and managed.
Even for those distributors who truly are 100% dropship, there’s still the matter of product availability and how to track or manage the items that are being prepared and sold. That’s not "holding inventory,” per se, but it still calls for inventory management.
The bottom line is that all distributors sell products that are stored somewhere, and are owned by someone, and go through various stages of preparedness between the point of sale and final delivery.
Admit it -- you have inventory. The inventory needs to be controlled, and the warehouse needs to be managed.
Find news, webinars, technology, trends, and more in the Essent Connect email newsletter.
Essent is the leading provider of fully-integrated business management software solutions and services for process-intensive industries and the largest trading network for the promotional products industry. The Essent family of fully-integrated products and services combines best practices, business processes, software automation, and network communications to deliver unparalleled, unified business management solutions. Since 1980, Essent has offered the systems, service, software, and support critical to success in today's highly-competitive marketplace.