THE FASHION FUTURIST

Blog

Indent vs Stock Service - Which One’s Best And What Do They Even Mean?

The Fashion Futurist Indent vs Stock Service

If you haven’t come across the terms “indent" and "stock service” I highly recommend you get used to them. Why? Well, these are the two main ways of supplying stock to retailers.

Ok, so now you know what they mean, which one’s best?

Let’s look at “indent” first, a term you might recall me mentioning in part one of “How To Build Your Future Wholesale Business The Right Way”. Essentially indent (or the indent model) refers to the process of taking wholesale orders from retailers and then only producing the total quantity of those orders with your manufacturer. This prevents over-ordering although from time to time you may decide to add a little extra stock (or “fat” as I like to call it) which will enable your retailers to quickly re-stock on best selling items once they’ve sold out. 

"Stock service”, on the other hand, involves placing your production order based purely on forecasts of what you think you can sell rather than actual orders. While this model could save you time and money by producing larger quantities that are readily available to supply to retailers, this is clearly much riskier than the indent model as incorrect forecasting could leave you with the costly and rather unpleasant task of having to clear slow moving stock. 

So which one’s best? Well in my opinion the ideal model is a mix of both. Reduce the risk by manufacturing what your retail clients love, but add a little extra of the most popular styles from their orders which can be sold through your own online store or kept on standby to on-sell to your retailers in season.

Still puzzled and feel like you might need a voice of reason to guide you towards the right mix, then drop me an email over here.