National Buying Consortium (NBC) has launched a new member planning service to help its members prepare for the financial impact of the Deposit Return Scheme (DRS)
The service includes a practical calculator that estimates deposit throughput, working-capital requirements and potential financing costs using each individual businesses volumes, supplier terms, stockholding and customer payment periods. It also models seasonal demands and shows how changes to payment terms or sales volumes could affect funding needs.
David Lunt – Group Managing Director – states:
“DRS will create a significant new flow of money through the supply chain. Although deposits should ultimately be recoverable, differences between paying suppliers and receiving payment from customers could place additional pressure on working capital. Planning early gives wholesalers time to quantify that exposure, discuss terms with suppliers and customers, and arrange appropriate funding before the scheme takes effect”.
The calculator enables NBC members to:
- Estimate the value of deposits passing through their business
- Identify peak working-capital requirements
- Assess the effect of seasonality and payment terms
- Model alternative volume and timing scenarios
- Support informed discussions with suppliers, customers and finance providers
The tool forms part of NBC’s wider commitment and engagement to helping independent wholesalers and cash and carries understand upcoming industry changes and prepare their business effectively.
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