Cash is king

The gardening season is looming but this season, for many,supplier’s cash flow may be causing some headaches.

The issue lies in the fact that the pre-season model of businessprovides retailers with the opportunity to takestock early and pay on extended credit terms. However, retailers choosing to delay pre-season orders can makebalancing the books tricky. Coupled with some lateoreven non-paying retailers (rarebut can obviously leavea very bad tastefor those that arevictims) this may even push some suppliers to breaking point.

Admittedly,excessivestock holding in retailers is causing the delay and as stock slowly begins to shift this pressureshould ease as, for many retailers, paying on time is of the utmost importance. But for those whereextended payment terms seemingly come with an element of ‘grey area’, this issue needs to be rectified to ensuresuppliers can move intothe newseason full of confidence.

Additionally for suppliers it’sadouble whammy: stock on shop floors not yethaving yielded payment, and newseason stock sitting in warehouses yettoturn intocash. Forthem the adage of ‘turnoverisvanity,profit is sanity, but cash is reality’has neverfelt moreapt.

One of the other reasons we havethe pre-season model, is to smooth out the ridiculously high peaks in demand come Easter time. So,when moreand more retailers delay deliveries, this could potentially cause bottlenecks. Retailers requesting ‘just in time’ stock deliveries may all arriveatthe same time, resulting in suppliers being placed under immense pressure as theyrally to fulfil orders. These pressures could so easily be minimised if forecasting and pre-season deliveries arestrategically planned, rather than delayed and then subject to last-minuteurgency

Many GIMA members pride themselves on shortlead times so optimise this with top-up orders or ordering nowtodemonstrateyour commitment and supportofyour supply network. As always, communication will be key. Talk to your suppliers. Book your deliveryslots and allowthem to offer adviceonhow to fillgaps and createacurated product offering that makes easing intothe new season as painless, and as profitable, as possible. Wrinkles in the system always happen and recent supply chain challenges haveobviously impacted the garden retail sector morethan most in recent years. But we’veshown we can makeit happen. Let’snot makeitany moredifficult that it has to be by working through this together Looking ahead, despitethese pressures, the season is looking positive. Gardening remains a popular pastime and consumer confidenceshould improve as the weather starts to warm up and biodiversity,ethical consumerism and value continues to influencebuying decisions. Our industryisin abetter position than most to respond to these demands, so let’sensurethese pressures aren’tthe legacy of what could be another thriving year

Find out more

Forfurther information about GIMA and its wide range of member benefits, please contact the GIMA Press Officeon01959 564947 or info@gima.org.uk

• Garden Press Event, 21st February, BusinessDesignCentre, Islington, London

• Developing Sales Skills Workshop, 22nd February, virtual eventhosted by CedarAssociates

• GIMADay Conference, 14th March, Wyboston Lakes, Bedfordshire

• KeyAccount Management Workshop, 9th March, virtual event hosted by CedarAssociates

• Influencing Skills Workshop, 15th March, virtual event hosted by CedarAssociates

• GIMAAGM, 12th May,virtual event

• GIMA Golf Day, 8thJune, Belton Woods, Grantham,

• GIMAatGLEE, 27th –29th, NEC, Birmingham

• GIMAAwardsJudging, 11th -12thJuly, WarwickRacecourse

• GIMAAwardsGala Dinner, 19th October,Celtic Manor Resort

Plus look out for moreskills-based workshops, market data, Buyer Connect sessions, and various webinars on ahost of different topics.