Why Last Mile Brands

The Promotional Products Industry Has Been Solving the Wrong Problem for Decades

For more than 30 years, we watched companies spend hundreds of thousands, sometimes millions, of dollars on branded merchandise months before anyone needed it.

As companies grew, getting branded merchandise to more employees, locations and events became increasingly complex.

Our industry responded the only way it knew how. We competed by building bigger warehouses, launching company stores, investing in inventory software and developing ever more sophisticated logistics. Over the past 15 years, we got very good at managing inventory.

But managing inventory was never the real problem. Paying for it months before you needed it was.

What that actually costs

Industry estimates put the annual cost of carrying inventory at 20–30% of its value: the cost of capital, storage, handling, insurance and shrinkage. Every $100,000 sitting on a shelf costs another $20,000–$30,000 a year to hold. That's before the wrong sizes, the old logos, the departed employees and the campaigns that ended early.

Every dollar sitting on a warehouse shelf is a dollar that isn't growing your business.

Inventory is a choice

The good news? Inventory doesn't have to be a cost of doing business anymore. It's a choice, and there's a better one: produce what's ordered, when it's ordered, and ship it in days.

Promotional product inventory isn't an asset. It's idle cash.

How much of your marketing budget is sitting on a shelf?

Move the sliders to match your program and see what your inventory is really costing.

Your numbers
Annual spend on promo, apparel and print$500,000
Everything branded your company buys in a year.
Share of that spend in inventory on a typical day40%
In your warehouse, closets or offices, or a vendor's warehouse you pay for.
Annual carrying cost25%
Capital, storage, handling, insurance and shrink. Estimates typically run 20–30%.
Inventory that never gets used10%
Wrong sizes, old logos, departed employees, dead campaigns.
What it's costing you
On the shelf right now
$200,000
Money already spent on merchandise nobody has ordered yet.
Annual cost to hold it
Inventory × carrying cost
$50,000
Inventory likely written off
Inventory × share never used
$20,000
Three-year holding cost
At today's inventory level
$150,000
With on-demand production, finished-goods inventory to finance, store or write off: $0.

Estimates only. Carrying-cost benchmarks often include some obsolescence, so the write-off figure is shown separately and not added to the holding cost.

Ready to stop tying up your marketing budget in inventory? Let's talk. We'll show you how to eliminate inventory, order only what you need when you need it, and put more of your marketing dollars to work growing your business.

Scott Morris
Founder, Last Mile Brands · 32 years in the promotional products and print industry
scott.morris@lastmilebrands.com
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Let's talk about your inventory

Tell us about your program and we'll show you what on-demand looks like for your company.

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