OAA’s ProVision wants to play role in distribution – without much financial risk

ProVision has been approaching manufacturers and wholesalers to agree to use its ProVision Distribution Centre (PVDC) in Sydney in an attpt to cut distribution costs; however there has been a mixed response from companies, ranging from enthusiastic support, through wait-and-see to downright rejection.
The PVDC will be operated by Sunshades Eyewear at its Alexandria warehouse in Sydney, as a third-party.
ProVision has invested in a computer syst, while manufacturers and wholesalers will largely pay for the operating costs of the PVDC. And they will be expected to offer an additional discount to those they already give ProVision mbers.
The main idea of the PVDC is to reduce the cost of freight for practices by reducing the number of movents of frame stock between manufacturers and wholesalers, practices (and clients) and prescription laboratories, and then back to practices and ultimately clients by means of the suppliers shipping bulk quantities of stock of certain best-selling lines to the PVDC for storage and progressively delivering to laboratories.
However, that could well be one of the most-costly and difficult-to-control aspects of the whole sche, particularly the need for participating suppliers to have stock at the PVDC as well as on their own shelves.