Cash flow · Inventory · Restocking
Restocking and cash flow: fulfilling from China
· 4 min read · SuperFulfill
Restock speed is usually discussed as a service question. For a growing brand it is also a finance question: stock that is bought, shipped and stored before it sells ties up money that could fund the next launch.
Where the time goes
With an overseas warehouse, each replenishment goes through production, bulk freight, receiving abroad and then shipping to customers. When stock is held in China near the manufacturers, new production goes into the warehouse without the bulk freight and overseas receiving steps. Actual lead times vary by product, supplier and route.
Where the money goes
- Overseas warehouse: buy stock in bulk, pay freight to move it abroad, pay to store it there, and keep that money tied up until it sells.
- Fulfilling from China: hold stock near the manufacturers, ship each order when it is placed, and decide how much to produce based on what is selling.
When it matters most
The difference matters most for brands that launch often, test new products, have changing volumes or sell into several regions. For a stable range sold mainly in one country, an overseas warehouse may still be the simpler choice.