Independent merchants are often squeezed by cashflow pressure, rising operating costs and tough competition. As an antidote to these sector challenges, National Buying Group says its Partner network bolsters supply chains and ensures “no merchant is left to manage potential risks alone.”
Here, Neil Tidmarsh, Director at Kingsley Bathroom Plumbing & Heating Centre, explains the stock sharing benefits he’s had access to thanks to being an NBG Partner.
Operating an independent merchant can be difficult because of the pressure to compete with larger retailers on price and buying power. But what I’ve found as an NBG Partner is that having fellow Partners who are willing to help out when times get tough makes such a difference.
One of the main ways Partners help each other is through stock sharing. Say a Supplier has run out of the products I need to complete a job, or stock is on allocation and delivery times are too long, I can drop a message into the NBG channels asking if anyone has what I’m looking for.
And when it comes to the actual process of sharing stock, it couldn’t be simpler. We have access to NBG’s WhatsApp channels as well as a Daily Digest email and NBG Hub which keeps us all in the loop.
One example I have of this is when my team and I were supplying a project in Central London that needed seven basins. The Supplier had run out of stock and the job was at risk of being delayed so I sent a message to the NBG network. Another NBG Partner, Chris Norden at Norden Group, replied straight away to say he had stock and was already doing daily deliveries to central London. Instead of me getting in the middle, Norden’s took the basins directly to site.
The job was completed on time and avoided me making costly trips. Kingsley benefitted as the job ran smoothly and Norden’s made a sale that wouldn’t have otherwise come their way.
Down to details
I think one of the first questions people have about internal stock-sharing is why another merchant wouldn’t poach your business from you. There’s nothing really stopping them, but the reality is that — to my knowledge at least — it’s never happened.
The answer is, I believe, that the NBG Partners care about each other and wouldn’t dream of undermining the values that this buying group is built on. Our regional meetings and regular social events mean we have created something that is much more than just business — it’s a tight-knit group that has each other’s backs. Yes, on one level I suppose we are competitors but we’re also friends, which might sound cliché but it’s true.
“The objective here isn’t profit maximisation; it’s customer retention and good service.”
Nobody gets rich through the internal stock-sharing process. The supplying merchant will usually add a small handling charge which covers their costs, but the buying merchant will generally sacrifice some of its margin too. That’s because we want to get projects done on time and keep our customers happy rather than risk reputational damage by not fulfilling our promises.
The objective here isn’t profit maximisation; it’s customer retention and good service. We all like to help each other out because we understand how hard the market can be to operate in at the best of times.
More than just stock
While the NBG network is the first port of call for stock sharing queries, it’s also a valuable resource that keeps everyone in the know about market activity and the latest updates. It’s like having access to a few hundred consultants dotted around the country who are all experts in something. That is truly priceless.
Partners discuss opportunities and product trends in these groups as well as customer challenges and we all help each other with answers or solutions where we can. It’s really nice because this job can be quite lonely when you’re sitting in your office, but with the other Partners, I feel connected to people all over the country, and your problems don’t feel like they’re unique to you.
If the chips are down and cashflow pressures and market competition are causing bottlenecks in product availability, there will always be someone in the group who is willing to help you and even though Kingsley has two branches, with the help of NBG’s Partners, we can operate in the same way as a national business.
As a result, our customers benefit from greater product availability, faster solutions, better service and greater confidence. As a merchant, I’m confident that no matter the question, I’ll be able to find an answer.
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