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In the distribution world, success often hinges on efficient inventory management and securing the necessary funding to keep operations running smoothly. For distributors, managing inventory is not just about having products on hand but also about optimizing cash flow and ensuring timely customer deliveries. 

In this article, we will delve into the crucial aspects of inventory management and inventory funding, exploring how they can work together to set distributors up for success. We will also take a closer look at how services like SimplyDepo and Kickfurther can assist in achieving these goals.


Part 1: Securing Inventory Financing

Securing the necessary funding to maintain an optimal inventory level is a key challenge for many distributors. Whether you are a small business or a larger enterprise, access to capital is vital for purchasing, storing, and distributing goods. 

Here are some methods to consider:

Traditional Bank Loans: Many distributors rely on bank loans to finance their inventory. While this can be a viable option, it often comes with stringent eligibility criteria, lengthy approval processes, and interest rates that can strain profit margins.

Inventory Financing: Inventory financing, also known as inventory loans or asset-based lending, allows distributors to use their existing inventory as collateral to secure a loan. This can provide a quick and flexible funding source without a perfect credit history.

Alternative Financing Options: In recent years, alternative financing options like peer-to-peer lending and crowdfunding have gained popularity. These platforms can connect distributors with investors looking to support businesses in exchange for a return on their investment.


Part 2: Order & Inventory Management

Efficient order and inventory management are crucial for distributors looking to reduce costs, minimize stockouts, and improve customer satisfaction. 

Here are some best practices:

Real-Time Inventory Tracking: Implement a robust inventory management system that tracks inventory levels in real time. This enables you to make informed decisions about reordering and preventing overstock or stockouts.

Demand Forecasting: Use historical data and market trends to forecast demand accurately. By understanding which products are likely in high demand, you can optimize your inventory levels and reduce carrying costs.

Supplier Relationships: Cultivate strong relationships with your suppliers. Negotiate favorable terms, explore vendor-managed inventory (VMI) agreements, and work together to improve lead times and order accuracy.

Just-in-Time (JIT) Inventory: Consider implementing a JIT inventory system to reduce excess inventory and associated carrying costs. This approach helps you receive goods only when needed, improving cash flow.


Part 3: How Both Services Can Help – SimplyDepo and Kickfurther

SimplyDepo and Kickfurther are two innovative platforms that can assist distributors in achieving their inventory management and funding goals.

Kickfurther: This platform specializes in providing inventory funding for distributors. It offers quick and hassle-free financing for new and existing inventory. Kickfurther helps you bridge cash flow gaps by paying your suppliers upfront without taking on debt or giving up equity,

Kickfurther will fund up to 100% of your cost of goods, and you don’t make any payments on that inventory until after it’s sold. Taking advantage of their inventory funding platform enables you to purchase more inventory and possibly leverage an order volume discount or invest in other aspects of your business.

Why Kickfurther?

No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.

Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.

Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital or even lower your business’s valuation if you are looking at venture capital or a sale.

Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most distributors. By funding your largest expense (inventory), you can free up existing capital to grow your distribution business wherever you need – product development, advertising, adding headcount, etc.

Maintaining adequate inventory levels can ensure timely deliveries of products and avoid stockouts, helping to develop healthy relationships with retailers and distributors. Preserve your cash flow for business operations and continue to scale your business with inventory funding. 

SimplyDepo: SimplyDepo is dedicated to equipping distributors with top-notch tools to streamline wholesale operations, particularly inventory management. Its cutting-edge technology delivers significant time savings for both wholesalers and retailers, effectively eliminating the need for time-consuming order forms, catalogs, email, phone calls, and fax transmissions. With a comprehensive feature set integrated into a single platform, SimplyDepo fully caters to the needs of small and medium-sized wholesale enterprises.

The robust mobile applications designed for sales representatives and merchandisers offer unparalleled convenience, enabling them to place orders effortlessly, access catalogs, check inventory, review order histories, and plan routes while on the move. Meanwhile, delivery managers can efficiently coordinate fulfillment and delivery processes. Notably, SimplyDepo operates entirely on a Software as a Service (SaaS) model, rendering the traditional paperwork obsolete when joining the platform.

By utilizing these services, distributors can streamline their inventory financing and management processes, ensuring they have the right products at the right time while keeping their financial health in check.


Closing thoughts

In the highly competitive distribution world, effective inventory management and reliable inventory financing are the cornerstones of success. Distributors must balance having enough inventory to meet customer demand and avoiding excessive carrying costs. Services like SimplyDepo and Kickfurther offer valuable assistance, making it easier for distributors to secure funding and optimize inventory management strategies. By implementing these best practices and leveraging these platforms, distributors can position themselves for growth and prosperity in the dynamic distribution world.

About the Author


This blog was co-written with our trusted partner, SimplyDepo.

SimplyDepo’s platform makes it easier than ever for brands, wholesalers, and distributors to manage their operations. Learn more here.

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