Home and Building, Volume 37 Number 6 (1975)
Industry and commerce alike have traditionally regarded a storage problem as one to be solved as cheaply as possible. In the past, storage systems were utilitarian arrangements devoid of glamour — necessary but not necessarily nice. So it comes as a surprise to discover that this until now neglected utility, is currently being used as a vehicle with which to introduce a profound change into the way business is done in New Zealand.
Two large companies, one American owned, the other very much a New Zealand concern, have successfully introduced a vendor refill system of retailing, into over 70 outlets throughout both the north and south islands.
This process takes the necessity for replacing goods out of the hands of the retailer and makes it the responsibility of the supplier. It works this way; On gaining the consent of the retailer, the supplier or manufacturer, will put in a permanent display system which he undertakes to keep serviced. Stocks are regularly checked by the suppliers' travellers and are topped up automatically.
Customers are guaranteed a regular supply of goods. The retailer can forget the stocktaking and all the forward ordering required for that range of goods, and the manufacturer or supplier has in effect, sewn-up an outlet. He no longer has to worry about having to re -sell his company or its products at each call.