The business
A mid-sized UK homeware retailer sells online and through two shops. It buys most of its kitchen range from a UK wholesaler. Margins have been squeezed, popular lines often go out of stock, and the team has no experience of buying overseas.
The challenge
- Improve margins on four core kitchen products
- Keep best-selling lines consistently in stock
- Buy direct from manufacturers without hiring an overseas buyer
- Avoid tying up cash in stock months before it can be sold
Stage 1: Research and a clear brief
The retailer’s account manager helped turn the product range into a written brief: materials, sizes, finishes, packaging, quantities and target delivery dates. Using market research and cost analysis, Legitech compared suitable manufacturers on landed cost, not just unit price.
Stage 2: Checked suppliers and approved samples
Shortlisted suppliers were checked for background, certifications, production capability and track record. The retailer approved samples against the specification, and Legitech negotiated prices and lead times for the retailer’s approval.
Stage 3: Production, inspection and delivery
During production Legitech kept in contact with the supplier. A pre-shipment inspection checked the goods, packaging and labelling before dispatch. Sea freight was coordinated through logistics partners, customs documents were prepared, and the stock was delivered to the retailer’s warehouse.
Stage 4: Repeat orders and trade aggregation
With suppliers and specifications in place, repeat orders became faster. As the retailer added more lines, Legitech used trade aggregation to coordinate several products and suppliers in one process, with shipments planned together where it made sense.
Stage 5: Deferred payment terms
After completing three orders, the retailer was approved for deferred payment. Each order now arrives first, and payment is due 90 days after the goods are received, within the 30 to 180 day range Legitech offers.
| Hypothetical repeat order | Before deferred terms | With deferred terms |
|---|---|---|
| Order value | £20,000 | £20,000 |
| When the retailer pays | Before the goods arrive | 90 days after the goods arrive |
| Stock available to sell before payment | None | 90 days of sales |
| Cash tied up while goods are in transit | £20,000 | £0 |
In this hypothetical example, the retailer no longer needs £20,000 of cash tied up while goods are made and shipped, and can sell stock for 90 days before payment is due.
What this kind of engagement is designed to achieve
- Direct-from-manufacturer buyingWithout building an in-house overseas team.
- Fewer quality surprisesGoods checked before they ship.
- More reliable stockRepeat orders planned around demand.
- Healthier cash flowDeferred terms once eligible.
Every business is different. Tell us about yours and we will explain how we would approach it.