OAA’S Provision wants to play a much bigger role in distribution

Provision has been approaching frame suppliers to agree to use its ProVision Distribution Centre (PVDC) being established in Sydney in an attpt to cut distribution costs for its mbers, however to date there has been a mixed response from companies, ranging from enthusiastic support, through wait-and-see to downright rejection.ProVision itself is located at Mulgrave in Victoria.There is also concern that its selected must be fast-movers and will likely be roved if there is no movent in six months … and that the ultimate decision will rest with ProVision in regard to stock held in the PVDC .The proposed sche concentrates on best sellers, talking in terms of the 80/20 rule, which raises the question of slow-selling products – no mention of th is made by the PVDC, indicating it is not interested in full-service wholesaling, rather simply skimming the top and leaving the suppliers to carry the slower-selling but essential products in their own warehouses.A further concern is how sales representatives’ commissions will be affected by the PVDC’s operations.The target date for suppliers to sign up is sometime in mid-May, with July targeted for commencent of the sche.