After nearly 20 years of managing an extensive warehouse-based inventory to support our distribution business we are happy to report that we’ve recently completed a carefully planned strategic conversion to a largely stockless system. We’ve been looking at making this change for a number of years and have spent more than six months making the conversion.
Q: How does it work?
A: The “stockless” model works like this: We have negotiated agreements with our key suppliers to ship products directly from their distribution centers to our commercial customers – both locally and across the country. This arrangement includes utilizing air freight to ensure timely deliveries. In fact, we expect to be able to deliver orders faster using the direct ship model then the “old fashioned” way where we ordered products, received them into our local stock and then delivered them to our clients.
Additionally, the stockless approach is greener – as oil prices continue to rise we have successfully taken our delivery vehicles off the road, allowing the delivery companies (who are already on the road) to move goods more efficiently from point A to point B. For local deliveries, we have signed an agreement with Red Dog Courier, a Bellingham-based delivery company to facilitate the fast, free local delivery that we’ve always offered, including the “desktop” delivery service that is so important to many customers.
Q: What about emergencies? What if we need something NOW?
A: We are maintaining a “Crisis Management” stock (hence the “almost” stockless description) so that we can respond instantly to failed hard drives, dead RAM, toner cartridges, etc. In most cases emergency parts or supplies can be picked up at our Technology Solutions Center in downtown Bellingham with 10 minutes notice. We also of course maintain stock in the retail store and have a wide variety of parts and supplies on hand there at all times.
Q: Why change?
A: Over the years it has become obvious that the old model of a mid-size locally-based distributor was becoming something of an oxymoron in the world of global distribution and broadband automation. To put it simply; the large suppliers that we partner with have a distribution capability far beyond our own and economies of scale dictate that these large suppliers can offer superior deliverables more economically. Additionally as our business has changed in the last few years the opportunity to concentrate on service considerations and new products is welcome. We’ve experienced phenomenal growth in the network management space (especially remote management) and other professional services and our retail focus has really shifted as we’ve begun to really explore the relatively new partnership with Apple. With these divisions of Northwest Computer doing so well, we wanted to be able to bring more focus to them by discontinuing our warehouse with it’s attendant inventory, resource management requirements and infrastructure challenges.
Q: How does this change affect your customers?
A: Customers who have historically ordered products from us for delivery should see little, if any, change in lead times. In some cases, orders may take an extra day or two to be delivered, in other cases they will arrive more quickly than before. Documentation accompanying deliveries may look different. As always, if there are questions regarding shipments contact us and we will address them.
Q: Are you still recycling toner cartridges and e-waste?
A: Yes! We continue to partner with ReLectronics, a division of ReSources to recycle empty toner cartridges and computer gear. These items should be dropped off at our retail store at 1211 Cornwall. There are fees associated with the recycling of e-Waste. We are also exploring a relationship with Computers for Kidz, a local non-profit that rebuilds used computers and donates them to economically disadvantaged children in Whatcom County.
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