Supplier Profile: Inventory Network
Our company started in 2005. We felt there was an opportunity to help safety distributors sell some of their inactive/dead stock and give other distributors deals on products below the regular cost. We get lists of a distributor’s inactive stock and market it to other distributors at a discount. This helps the selling distributor get rid of inactive stock to a target market of peers. We have four employees. We don’t have any manufacturing or warehouse facilities because we don’t stock/ship any product. We broker the sales and have the sellers ship direct to the buyers. The service is FREE to distributors. We make our money on the markup of the products.
What has been your company’s business strategy to gain market share?
We contact safety distributors to inform them of our service and we get many referrals from current customers. We also belong to SMG “Safety Marketing Group” and attend the National Safety Council’s Congress and Exposition.
Describe the products you promote most heavily.
The products we sell depend on what the distributors give us to sell out of their inactive stock. The best movers are the “Big Name Manufacturers” like 3M, Honeywell, Ansell, MCR, etc.
How do distributors contribute to your success in the marketplace?
We are dependent on distributors to provide us with products to sell. We form a mutually beneficial relationship in moving inactive stock on the buying & selling side.
Do you offer distributors value-added services?
In addition to discounted products, we also offer a Search Party Function to help distributors find items that are back-ordered or discontinued.
What business characteristics do you look for when selecting to work with a distributor?
We just look for honest distributors that want to move inactive stock. We trust that they sell the products advertised and ship them in a timely manner.
Describe your current financial picture.
We have maintained fairly steady growth over the past five years. We had a big spike back in 2010 and 2011 due to the BP oil spill, which caused a huge amount of overstock in the marketplace.
What should distributors know about your company’s future?
We will continue to seek out distributor partners to buy & sell inactive stock.