ITI Consignment Process
AboutIT
Through innovation and significant grow Australia's largest independent distributo building and construction industry, delive and globally. At ITI Australia, we have ma timber industry, and endeavour to provide our quality timber and building products in bulk for merchants everywhere.
Problem
For merchants, stocking products in their stores becomes a delicate balance when market demand shifts unexpectedly. Anticipating and adapting to these changes is crucial to avoid inventory issues such as overstocking or understocking.
When demand for certain products surges or declines, merchants face challenges in managing their inventory effectively to meet customer expectations while minimising costs and maximising sales opportunities.
The ability to quickly assess market trends, adjust procurement strategies, and maintain flexible supply chains are key factors in navigating these fluctuations is a difficult process and sometimes overwhelming.
Solution
ITI's consignment process allows merchants to stock products without upfront costs. This flexibility enables merchants to adjust their inventory levels based on real-time market demand trends. As their purchases are inline with sales each month, market flucuations wont place uneccesary financial strain on the business freeing up much needed capital.
Market
Market volatility in building materials can significantly impact pricing, availability, and project timelines, making strategic planning and flexible sourcing crucial for industry stakeholders. Consignment gives you access to the products needed in the right volume mitigating volatility in the market.
Agile
Being agile in the building materials sector is crucial to swiftly respond to evolving trends, customer demands, ensuring competitiveness and sustained growth.
Industry
The industry for building materials is in a constant state of change, adapting to new technologies, regulations, and market demands. Consignment gives you access to the products needed in the right volumes.
Consignment allows the merchant to quickly adjust product offerings and quantities based on emerging market insights.
EndUser
Trade and DIY retailing presents challenges due to the diverse needs and expectations of both professional contractors and individual consumers.
Whether it be tradies wanting stock last minute or considered purchases made by DIY customers consignment gives you the flexibility in your offering to service them both effectively.
Consignment Overview
Our top service offer.
Stock is held in packs at customers yard which is only charged for once the pack is opened. Stock is managed by ITI based on agreed usages and levels between ITI and customer. New consignment portal makes the process even easier.
CapitalPreservation& CashFlow
Consignment provides flexibility for customers to preserve capital and utilise it more effectively
Rather than capital tied up in stock, it can be used in other areas of the business such as marketing and sales initiatives
Cash flow benefit quite often the stock is sold and paid for before the merchant needs to pay the invoice to ITI improving business cash flow
The consignment model fosters a collaborative relationship between ITI and retailers
This collaboration promotes efficiency and strategic alignment between both parties, ultimately enhancing overall operational performance
CompetitiveAdvantage
Consignment empowers merchants with the flexibility, simplicity, and agility needed to effectively navigate the market, streamline operations, and capitalise on growth opportunities, thereby gaining a significant competitive advantage in the trade and DIY sectors.
Niche
Consignment offers a competitive advantage in niche markets by allowing merchants to carry specialised or new products without the upfront costs.
Easy
The ITI consignment model utilising its portal and processes make consignment easy for our customers
Agile
Consignment allows merchants to be more agile in regards to their stock holdings, they can increase stock on ground without the upfront expense
Market Validation
Consignment through ITI has demonstrated its effectiveness in meeting industry demands by providing flexibility, minimizing risk, and fostering collaborative partnerships between ITI and merchants for over 25 years.
ITI pioneered the consignment initiative and has continuously refined and perfected it, establishing the standard for seamless inventory management and customer satisfaction in the industry today.
The stock management system allows customers to focus on selling rather than buying, our history has shown that consignment customers have outgrown our non consignment customers as they are focused on selling and have better levels of inventory.
Consignment Stockholdings
ITI and prospective customer will agree on a minimum and maximum stock holdings that will be stored in their yard. Stock is supplied either ex wharf, direct or ex ITI’s yard. This volume can be adjusted throughout the year depending on the usages , and seasonal increase and decreases.
Consignment Pack Identification
All packs delivered to the customers yard on Consignment will be tagged with a Blue colour tag that identifies it from normal sales stock
This identifies:
Pack Number (including barcode)
Product
Customer Warehouse
Pack Tally
Date of stock transfer.
Consignment Stocktake
At the end of every month, an ITI representative will stock take in your yard using a wireless barcode scanner
At the end of the stock take an invoice will be created for the packs used. Stock can be replenished. Any unusual stock usages will be identified and discussed with the customer, to identify what has happened to the stock and if we need to adjust levels on that product.
anning of the nsignment stock the branch
ve committed to the latest technology to e the checking of the consignment stock urate and safe.
the latest in long range Wi Fi scanner
ment the ITI representative can scan all without the need to climb any packs or any risks that may cause injury to selves or others.
Summary report shown above will just advise how many packs and what length they are in the branch.
Consignment stock reports available
Several stock reports are available from ITI that will advise consignment stock available at each branch.
The pack detail report below shows the actual pack details by product, tally and pack number etc.
HOW IT WORKS
Customers have their own login to the portal.
Can be accessed on Laptop, Tablets and Mobile.
There are four different levels of security depending on the user.
Can see stock in their store, pieces in packs, price and more!!
Stock is live and updated by the press of a button.
Used stock can be sent to ITI in seconds.
STOCK SCREEN
Pack Number - Each pack has a unique ID
Date - Keep track of when packs arrived
Category - Easily filter by category
Price - Keep track of agreed prices.
Product NameIdentifies product
PROCESS
The consignment process implemented by ITI has proven to be exceptionally effective, leveraging specially designed technology developed specifically for the Consignment process.
Customer logs onto the Customer Portal
This updates the stock in the Portal system
The customer sends the list to ITI for replenishment and invoicing, which can be processed daily or weekly, depending on the customers preference.
The customer scans into the portal the pack label barcodes that have been removed from packs when opened using the scanner provided by ITI
Customer has the option of printing off the usage and entering it into there own system.
Customer has the choice of stock being replenished automatically or they have the option to reorder as needed.
SCANNER PROVIDED
Each customer is provided a scanner to help with streamlining inventory management and enhancing operational efficiency for merchants.
This advanced technology enables merchants and ITI to accurately track stock levels in real-time.
Stock return policy Pricing policy
Any product in the consignment stock that is not selling or is deemed as overstock can be returned to ITI. This is on the basis that stock is kept in good condition, is not damaged and is within the agreed timeframe.
Our account managers monitor the stock constantly and if we see any indication that stock is not moving this will be raised with the buyer and if required stock can be replaced with a more suitable line.
ITI commits to keeping their customer competitive at all times, pricing changes are advised as per normal terms and negotiated as they are currently. Price Structure does not change because a store moves to Consignment. Without the customer being competitive, consignment does not work.
Why use ITI's top level of service?
Better use of capital for the customer.
Stores have more time to focus on selling rather than buying.
ITI account managers will manage the stock and ordering process working with the stores ensuring that the store can always service the customer.
ITI can identify stock that has not been rotated and help keep stock fresh. Our monitoring of stock allows us to see trends and react quickly to changing purchasing patterns by the stores customer base, especially when supply gets tight.
Consignment stock allows the store to hold more stock in faster moving items which ensures stock is always available for customers but at the same time does not impact on the store stock levels.
Thank You
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