Can you hold safety stock or run a buffer inventory programme for us?

Can you hold safety stock or run a buffer inventory programme for us?

A:Yes, for items you order repeatedly. Holding stock works well when demand is predictable and the specification is frozen; it works badly when the design still changes, because obsolete stock is the most expensive inventory there is.

Factory or 3PLTwo holding options
Call-offReleased in batches
Frozen specRequired for stock holding

How stock holding is usually structured

  • A frozen specification and a documented replenishment trigger — a minimum level and a reorder point, not a verbal arrangement.
  • A call-off schedule: we hold the volume, you release it in agreed batches so your cash is not tied up in full stock.
  • An aging and obsolescence rule agreed in advance — how long stock may be held and who carries it beyond that date.
  • Periodic stock reporting so you can see available quantity before you place the next release.

Where stock holding adds cost

Holding stock is not free. Expect a storage component in the price, minimum holding periods, and a limit on how much of a range we will carry. The break-even is usually reached only when you order the same specification at least two or three times a year.

Tell us your annual volume and call-off pattern and we will price stock holding.

Discuss Stock Holding