Some may think this move was completely crazy and others will think that was a very smart one.
The annual fees for EU and UK students in the UK is £9,250 and in 2020 I invested the same amount as my annual tuition fees of medicine in Kitchen Packs. That’s right, pots, plates, bowls, cutlery and mugs. Hundred items of each category, to be precise over 5,000 individual items.
So why would a medical student (who is supposed to be focusing purely on his medical degree) spent that extraordinary amount (equivalent to 9,000 mayo & chicken burgers from McDonalds) on Kitchen packs?
There is one main reason why I took that initiative and generally why a business would invest in their own stock.
You are in control of the supply chain
According to the google search I just made (because, remember that I don’t have a business degree), supply chain is the “sequence of processes involved in the production and distribution of a commodity”. In this case the commodity is the kitchen packs where each pack consists of up to 70 different items. When you have your own stock, it means that the items have already been produced and packaged and are ready to be distributed the next day. When a customer orders a kitchen pack, they want it delivered soon, not in 6 months once the saucepan has been molded in and polished by the manufacturer.
When each pack consists of so many different items, there is a very high chance the supplier/manufacturer might run out of one or a few items. As a result, the kitchen pack will be incomplete, and I will have to find an alternative which costs your time trying to find it and may not be up to specs. It may also be different shape or color and the customer will likely complaint if the items they received are not like the picture.
Having your own stock means that you are in control of the supply chain. You are not relying on anyone for sourcing the goods (of course until you run out of kitchen packs and need to get more stock in). If you are in control, your logistics will become a lot easier and manageable. I have as of right now 150 kitchen packs in stock and I know that all I have to do in order to deliver it to the customer is notify our delivery company DPD which will deliver the pack the next day. Easy and simple.
So what are the key take away points? In order to grow your business, you invest back into it. Investment can be in the form of having your own stock, just like I did. This way we are in control of the supply chain which will ultimate translate in improved logistics and happy customers who receive their order as described and on time.
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