Reply No. 205
savings he makes are then passed directly to customers, who benefit from lower prices. This leads to much higher volumes of trade as well as many returning customers who know that they will get the best deal around. Having a trade counter means that customers can come and collect their purchases as well as look at potential purchases “in the flesh” as it were. The other key person in PVR is Simon Taylor who ensures the smooth running of the day to day tasks and also deals with the 90% of the purchasing that is simply repeat purchasing. But again, each purchase is subject to rigorous price and deal checking.
Much of PVR Direct’s business is in fixings & tools, and here Paul uses direct contacts in China to buy in bulk in order to save money. This purchasing needs to be very sophisticated since it is based on what customers may need in the future. By working closely with customers, many are industrial manufacturers, PVR Direct is able to understand and monitor needs and adjust purchasing as necessary. Once again, using sophisticated IT systems that monitor stock levels and enable day-by-day management of stock levels ensures that customers are kept happy and stock levels are realistic.
PVR Direct is very good at talking to customers to find out what they want. An example of this is the service PVR provides to local manufacturers that use a lot of components and fixings. The PVR team monitors the usage of items – and these can include consumables like wipes and rubber gloves – and ensures that stock levels are maintained on a “just in time” basis so that the customers always have enough to get on with their job. Paul cites this as a classic example of how, even when times are hard, a business can flourish by being innovative and original and providing good, useful services.
PVR Direct has a stocking list of over 80,00 products. The management of this vast amount of stuff is made possible by canny and informed use of up-to- date computer systems, and in which Paul and his team are expert. This “Kan Ban” system is flexible and integrated so can manage a number of related key tasks at the same time, for example stocking and restocking, purchasing and recording stock levels.
At the PVR Direct headquarters in Bristol, there is a trade counter that stocks
a smaller selection of tools and other equipment. The company tends to favour branded good quality tools that reflect well on themselves. This reduces the problems of returns and replacements and increases general customer satisfaction.
The warehouse and dispatch facility in Bristol doesn’t hold a lot of unnecessary stock, but efficiency in dispatching orders on time is vital. There is a system in place which does not accommodate inefficiency should orders pile up. PVR’s internet and account business is growing year on year and Paul has a strong view that although the internet has resulted in slimmer margins, there is no point complaining. PVR remains competitive by getting the turnover up, finding the best deals on prices and being very efficient in all aspects of the business. In
Paul’s view, the internet business provides a good cashflow (no reluctant-to-pay account customers) which helps mitigate the lower margins. The other side to this is that the website has to be updated and maintained
regularly, with regular innovations and added value features like video demos. In Paul’s view, THS is “brilliant at the marketing stuff” and is a firm supporter of the new ideas that THS has been working on this year. Like many other THS member companies he makes full use of the online flyers service and promotions, as well as taking advantage of special offers from companies like Sealey, Draper & Toolbank. A couple of other innovations also have his support, for example the target to increase turnover and the idea of group tendering for major contracts by THS members. He always attends THS meetings, although he admits that most productive business is done in the regional meetings rather than the THS AGM, which is more like a party and a grand networking opportunity. He also attends the THS Tool Show to gain insider knowledge of new products and get good deals. (Paul and his staff attend few other tool shows and product launches since all the information they are likely to need is usually available online.) The overwhelming impression of PVR Direct that emerges is of a young but growing and successful company. Through Paul and his philosophy of business, it has a straightforward and energetic approach that all staff understand and they work towards success. The use of modern IT systems and an understanding of the needs of customers large, medium and small has allowed the company to be very efficient and operate with a minimum of overhead cost. I am sure that many businesses would love to have the opportunity to start afresh in the way that PVR did ten years ago, but as we know most businesses evolve and change simply because they have to. Keeping your eye on the changes and spotting trends are the big challenges and these seem to be the things that Paul and PVR Direct have done very successfully and will no doubt continue to do.
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ToolBUSINESS+HIRE 13
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