Business Forum • 9 July, 2024 at 7:55 PM
The building materials trade is seeing a steady rise in logistics costs. After an increase of 22% in 2023, in the first six months of this year it has reached 25%. The increase is influencing the sales trend, which fell by 15% in the first quarter of 2024, and directly affects distributors and manufacturers of building materials, which are forced to reduce profit margins in order not to lose customers. The vindem-ieftin.ro platform comes to their support by launching the Virtual Warehouse concept, which allows to reduce logistics costs by up to 15%.
"With the launch of the innovative Virtual Warehouse concept - the only building materials franchise in Romania - the need for in-house stocks and logistics is eliminated. This model significantly reduces operational costs and provides a sustainable and efficient solution for all actors in the supply chain. The Virtual Warehouse works through direct integration with building material manufacturers and allows products to be shipped directly from the factory to the end customer. This eliminates the logistical costs associated with warehousing and material handling, which can represent up to 15% of the total cost of the products," said Cosmin Răileanu, founder of the vindem-ieftin.ro platform.
By eliminating middlemen and the costs associated with storing and handling products, the Virtual Warehouse can offer more competitive prices to end customers. At the same time, the model allows a significant part of the mark-up to be allocated directly to the sellers, up to around 50%. This not only results in increased revenues for the sellers, but also motivates them to provide a higher quality of service, leading to an improved customer experience.
In turn, manufacturers benefit from a professional sales force and the elimination of additional costs associated with traditional distribution through the Virtual Warehouse model. Manufacturers achieve a faster sales process, faster stock turns and increased adaptability to market demands.
"The innovative Virtual Warehouse model allows franchisees to benefit from a complete digital platform. It integrates suppliers and customers into a cohesive ecosystem and provides support for branding, marketing campaigns and customer relationship management. With 10 years of experience behind it, the platform has been optimized to ensure maximum efficiency and a high degree of transparency in commercial transactions," Cosmin Răileanu added.
In the first part of 2024, the vindem-ieftin.ro platform saw a 30% increase in the number of users, and forecasts for the following year indicate that this upward trend will continue. For 2025, the platform has ambitious plans that include expanding the Virtual Warehouse network and perfecting this innovative business model.
The platform vindem-ieftin.ro is the first market network in the construction materials sector in Romania, established in 2014. In 10 years, the platform has accumulated a portfolio of over 300 manufacturers and importers of construction materials and more than 100,000 customers. vindem-ieftin.ro launched in 2022 the innovative concept of Virtual Warehouse, the only construction materials franchise in Romania. To date, 48 virtual warehouses have been created and expansion continues.