By Wade Lewis
It can be so frustrating when items you need are out of stock. Maybe you need them urgently, or you can’t get the kit you need from your other supplier? If you’ve ever tried to order your PPE a little bit late only to find that what you need is out of stock, then you’re not alone. More importantly, you’re in the right place!
Did you know that at Lion Safety we can offer you services such as stock management forecasting and stock holding?
Well, you do now! We can even offer this for your company’s branded clothing.
As a provider of the kits that will keep your employees safe, we believe that no project should be held up by delays in the supply of safety workwear. That’s why we recommend that you look into stock holding and if it is right for you.
You want PPE ordering to be hassle-free so that you can focus on the job that you’re doing. We want that for you too!
In this article, you will learn:
This is an agreement between you and us as your supplier, where we agree on a stock level we will hold in our stores to cover a period of time.
This period is generally the lead time it takes for us to order new stock so that you never run out of the PPE you need.
Stock agreements reduce lead times to as little as 1 day and ensure you don’t have to stockpile PPE or experience delays from the point of order.
If any of the above sounds familiar, stock holding probably isn’t a service that will benefit you.
Stock holding is a great solution for clients with a large workforce (more than 150 operatives), who also works on busy and demanding infrastructure projects that have strict deadlines. This is because:
In the end, a stock holding agreement reduces time lost working on projects because your operatives are not waiting for their clothing.
Open disclaimer; we are advocates of stock holding, BUT it doesn’t suit everyone.
Here are some of the reasons we’ve found people don’t want to have a stock holding agreement:
While this isn’t the case with Lion Safety, many people we speak with are reluctant to enter into a stock agreement having had this happen at other suppliers. Again, Lion Safety does not include exclusivity in our stock holding agreements.
We know we can’t be everything to everyone; we specialise in technical workwear, Hi-Visibility clothing, footwear and outdoor worker PPE (helmets, gloves, etc.). Because of this, we would never ask you for exclusivity. We understand that we will not be the best supplier for your needs if you require items we do not carry, such as office clothing and janitorial products.
We forecast usage to determine stock holding requirements with a lot of care and attention, ensuring that you won’t need to take a bulk of stock at the end of that contract. We will only hold the amount of stock we have agreed you will require. However, if you do not use the stock, you are required to take any stock remaining (especially when in the contract).
Both client and supplier need to work together to make a stock holding agreement work. This can even involve process changes in your business, such as the way you order and plan for forecasts.
You’ll need to be open-minded. When putting in place a technical workwear or safety clothing agreement, the best suppliers understand that everything starts with education around the best and most up-to-date practices.
This is why we work with you as often as you need to answer all of your questions and find a solution that works for you and your company.
Scared of commitment? We understand that contracts can be scary, especially when trying out a new supplier. Get in touch with our Business Development Team today to discuss your fears and drawbacks.
It’s always important to involve stores and yard supervisors/managers. Health and Safety should be involved from a technical standpoint and procurement from a contract management standpoint. Involving the above parties helps to guard against surprise barriers (like budget restrictions and internal approval/procurement processes).
Last but certainly not least, if the stock holding agreement is going to involve company-wide change, we find that having a director, team lead, and/or company leader on board from the very beginning of your journey ensures that the implementation of the process is seamless and successful.
If employees don’t have the correct kit or the right amount of kit, they can’t fulfil their job. This can lead to delays in project start times and risks potential for a bad company reputation.
By being able to control your PPE stores through forecasted stock holding, you can get more accurate management reports on what PPE you’ve used. You can also track spending and waste. This information will help you to better forecast future stock holding. It will also enable your Business Management to accurately identify any wasted costs, such as employees not looking after their equipment, or buying more than is needed. From here you can identify if there is a product that could be replaced with either a higher or lower quality product due to incorrect use.
First, you need to have the data available of what you’ve ordered and the quantity (ideally annually) for all the products you use. This must be shared with your consultant.
Then, you need to address any factors that affect those quantities. This could be:
To hold stock, a signed agreement must be in place that ensures you will take the stock you have worked with us to forecast for you. We will only hold as much stock as your agreed credit limit will allow.
If you require regular orders of PPE that will arrive fast, you’re probably going to want to set up a stock holding agreement.
Your next steps are:
If you aren’t an existing customer but would like to know more about what Lion Safety can do for you, book a discovery call.