Page 23 - HW FEBRUARY 2022

Bunnings’ new trade outlet in Invercargill:
Derek, Isaac and Belinda van der Vossen your local home improvement experts when managing inventory.
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TOUGH TIMES
Call for experts in
When times get tough, canny suppliers and retailers look for ways to maximise product availability and nuanced distribution expertise.
With Covid having an increasingly debilitating effect on the distribution chain, human resources are becoming a premium. One way to counter this, make resources go further and free up staff is to employ contractual expertise.
Managing inventory in the New Zealand home improvement sector is the domain of the one true specialist operator, VRM.
Having a specialist that you can count on in these difficult times can be gold says VRM Managing Director, Derek van der Vossen. “While we are always looking for light at the end of the tunnel, we now know the state of flux and the constant change will continue into 2022.
“This continuing uncertainty is leading to increased stress for us all meaning a great recruitment drift and record low unemployment. We are proud of our team of 28 highly skilled members across the country who continue to learn and adapt to this challenging and changing environment.
“Yet, with the market the way it is, the biggest limitation on VRM continues to be finding great people who want some flexibility in their lives but don’t mind hard work.”
From his unique perspective on the front line, Derek can confirm that our supply chain continues to be under massive strain
from lack of raw materials for manufacturers, importation timing uncertainties for many suppliers, together with merchant stock shortages because of these pressure points.
“The logistics of distribution throughout New Zealand is being
hindered by a lack of qualified drivers and massive increases in volumes. Prior to Christmas 2021 NZ Post said their volume was up 65 percent on the record the year previous.
“We can see the cost of goods increasing as availability world- wide becomes constrained with larger manufactures, particularly in China, buying up as many resources as they can at whatever price to keep their plants running. Raw radiata log exports causing an associated shortage in this country is a good example.
“We are seeing those price rises in raw materials and goods at
a far higher percentage than in the recent past and it is becoming more difficult for the manufacturer and the supplier to pass this cost on to the merchant and the end user.”
All of these factors, and others – closed borders, lack of skilled tradespeople and apprentices, a much lower consent conversion- to-construction rate, property values and rising interest rates – are impacting the local home improvement market, says Derek.
In amongst the mayhem, retail networks are continuing many of their development plans. The announced focus on the trade sector by Bunnings has seen a large outlet opening late December in Invercargill with another soon in south Auckland and others on the drawing board for later this year. Bunnings is also planning a major refresh of an Auckland warehouse store.
As well as catering to an extended client base across the country, these new store projects are integral to the wide range of inventory management services VRM is offering this market.
A chin-wag with Derek will always reveal valuable information and could well be the most productive call a home improvement market operator makes this year. ■
Intelligent Hardware Inventory Solutions
SUPPLIERS AND MANUFACTURERS!
Speak to us for solutions to your vendor refill and merchandising needs
“If you are looking for a dedicated team who understand merchandising and replenishment in the New Zealand hardware industry, Derek and VRM are the obvious choice. Hume Pine has been associated with Derek and his team for a number of years and they have assisted us to achieve and exceed our customer’s expectations with regard to service delivery and range maintenance. Communication from the team at VRM is excellent and the team are always available to assist and adapt to our requirements with any new projects or initiatives.” PAUL MUGGLETON, SALES MANAGER, HUME PINE
Ph: 0508 876 876 • Email: sales@vrm.net.nz • www.vrm.net.nz
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FEBRUARY 2022 | NZHJ 21
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