About nine months ago we took back the distribution of Orca in New Zealand. We'd outsourced distribution a couple of years ago, with a view to focussing on product manufacturing and marketing. But it became evident to me that controlling the distribution of Orca in our home country was too
important to leave in someone else's hands.
For any business good distribution is critical, and it's interesting to see other companies taking back distribution in key markets. Orca handles distribution in New Zealand and also the UK, while a third party handles the rest of our global distribution. It took me over 10 years to find a partner for global distribution, but it's critical to get it right. Initially I picked up different distributors in each country, but dealing with over 30 different companies can be a logistical nightmare.
One of the big challenges having taken back the market in New Zealand is rebuilding our relationships with retailers, and working within the current conditions. At the moment cashflow for everyone is tight, evidenced by the research showing debtor payments are averaging around 45 days. On top of that a lot of stores are closing their doors, which puts our stock at risk.
One benefit of being privately owned is that Orca has its fate in its own hands. In the past we've had our own stores, but much like distribution, we thought we'd leave retail to retailers. However, with the economy as it is, and for us to make sure Orca has a strong presence in our own backyard in Auckland, we've opened a new store.
We've combined the retail space with our offices and warehousing for our existing distribution and marketing teams, which gives us good efficiencies. Funding this sort of thing is always a bit of a juggle, but as most businesses will attest, it's no point producing products if there's no where to sell them. I love seeing our logo emblazoned on the outside of a building and while two years ago I didn't think distribution and retail in New Zealand should be our thing, I know we've made the right decision.
Scott Unsworth
