IS IMPORTING Batteries GETTING YOU & YOUR BUSINESS DOWN?
Is importing batteries getting you and your business down? Importing can be very tedious and time-consuming work. It’s a role of a single talented employee in most small businesses around Australia. Although the uttermost care may be taken in procuring the correct stock, there are so many factors that can change the stock received, especially in a growing business.
In this blog Valen explore the difference direct Importing Batteries can have on a business, opposed to a ‘Forward Order Stock’ arrangement with an Australian company.
So, when it comes to importing what do you need to be aware of? Valen briefly explores some of the pitfalls of importing batteries and components.
As we all know in a growing, or any business for that matter, Cash is King!
With importing, often suppliers will expect Cash upfront for orders meaning business cashflow can run tight until the product has landed, been sold, and paid for by the customer.
This could be a 6month turnaround period. Suppliers will often be reluctant to offer any Credit terms until a long-term profitable relationship has been formed with the business
Lead times and Import delays
Are a nightmare in themselves. Especially in today’s world amid a global pandemic caused by Covid19, where factory production remains volatile.
Dock strikes, natural disasters, and port congestion are some of the other factors that can again play havoc with import supply lines. It is essential to always remain vigilant to avoid product lines being badly impacted by situations such as these.
With importing, while it is essential to have adequate stocks so your team is not hampered in the selling, the coin can be flipped leaving you with too much stock.
This is the case of batteries, which have a shelf life and will claim essential warehouse floor space. This can lead to a loss been written off in the company’s books for stock unable to be sold. Stock Ratios are important as well. Balanced amounts of each product line following sales and market demand can be tricky and frustrating.
Warranties and Product Support
Can be very difficult to receive from overseas battery manufacturers for a number of reasons. Timezones, Language Barriers, and the fact that most of their ‘sales’ type personnel are only taught how to hard sell rather than look after and support customers throughout the length of the relationship.
Another thing to watch with importing… is the exchange rate. This can greatly vary the landed cost of your products meaning lost profits, or annoying and unnecessary price increases, for your customers.
FORWARD ORDER STOCK
Is there an alternative to importing my own batteries and accessories? Positively (and thankfully) YES! 😊
Some companies, including Valen, offer a ‘Forward Order Stock’ arrangement which will alleviate most of the issues outlined above.
How does this work?
A forward order stock arrangement is placed by the customer with an importing supplier, outlining when they require products delivered over a set period. For example, this could be an order for 3000x 12V100Ah Batteries, delivered at 500 per month for the next 6 months.
This allows the customer to get the best possible price from the supplier while keeping the customer’s warehouse uncluttered and their production humming!
Companies offering these types of services are often specialists in the product area. So they are aware of the pitfalls of ordering the product line and dealing with overseas suppliers for that particular product, meaning that the communication is better, they are better supported by the supplier, and will be able to access the stock in a more timely manner.
Being regular importers, they are able to secure the best quality at the best price enabling the company to pass these benefits onto their customers. This means customers can lock in their purchase price making for easy estimation and cost projection. It also assists the customer’s production ensuring projects do not run behind on delivery dates or key milestones.
Cash been king, as mentioned earlier in the blog, is freed up for use to grow the company, while all stock ordered on the ‘Forward Stock Order’ arrangement is paid for on an approved 30day trading account with the supplier.
Warranties and technical support are all given to the customer by the local supplier. As these suppliers are specialists in their product lines, this in-depth knowledge is then passed onto the customer.
Another huge advantage of purchasing locally via the ‘Forward Stock Order’ arrangement is that the companies team has more time to focus on what makes the company money, without all the import headaches!
Sounds too good to be true?
Reach out to Valen Team today to elevate your Battery importing headaches! Contact the team today to discuss your next project
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