Plumbing Africa Plumblink's first hundred stores | Page 21

40% cheaper) and pocket the difference.
They are robbing their clients,” says a
frustrated Nkosi.
What has done the business more good
than anything else in this scenario, he says,
was the introduction by Plumblink of its
own Plumline range of products. These
are both quality and more affordable, he
says, and are consistent best sellers. “For
instance, in say 2013, I maybe sold two or
three brass taps – with our Plumline range
today they sell like hotcakes. They move
fast. They’re good looking and affordable,
and whereas in the past we only sold to
hospitals and other institutions, now they
are bought by retail customers. Mrs Jones
buys a lot,” explains Nkosi.
He grows the business through spending
time on the phone. “The day is busy – but
when it is quiet, we phone customers.”
He gets deliveries from the distribution
centre in Midrand every Tuesday and
Thursday, through the group’s automated
ordering system which maintains minimum
and maximum stock levels. Even if its stock
of Plumline runs out – there’s seldom long
to wait for a new delivery.
The company’s IT system is the backbone
of the operation, providing Nkosi with
all the information he needs at any time,
he says, and enabling him to effectively
manage his store. Without a daily stock
report, for instance, shrinkage might easily
spiral out of control. High value stock –
like geysers, the shop’s biggest seller by
value; copper piping; valves; and vacuum
www.plumblink.co.za
breakers – is counted every morning.
When advised of losses he is enabled to
initiate an immediate investigation to find
out what happened. “There is access to
every detail of the operation in Plumblink
and it’s easy to get to.”
When stock arrives from the Plumblink
distribution centre it typically involves
five to seven pallets, and Nkosi explains
these cannot be immediately checked as
the driver has a tight delivery schedule
to stick to. They are accepted as ‘not
checked’ and only later broken down
and counted. Any anomalies are then
reported to the DC for investigation. What
can go wrong is damaged, incorrect
items or shortfalls. The Midrand head
office maintains a risk department which
investigates any losses, and performs a
whistleblower function for identified fraud.
The system tracks who takes stock out
and what happened to it – and why it was
not recorded at the till.
Deliveries from third party suppliers are
counted in the presence of the delivery
driver. The shop’s ‘daily bread’ according
to Nkosi, is copper tubes; geysers; valves;
PVC pipes; PVC fittings; and taps. As
many as 25 to 30 geysers (electrical and
“
Plumblink - Proudly Bidvest
to a lesser extent solar) can be sold per
day, with its warehousing room filled
almost to overflowing with them. Much of
this business is the insurance market, with
plumbers replacing geysers in individual
houses where there has been a burst
geyser, as well as non-insurance domestic
replacement, fitted by a bakkie-plumber
who buys what he needs for a single
client. This is what is known as ‘trade’.
A normal geyser would go for about
R3 500, while a solar geyser with all its
accompaniments like panels and pumps
can cost upward of R15 000.
All the time, Nkosi is responsible for
motivating his staff because when that fails,
people lose focus and sales flatten. A part
of his function is keeping abreast of what is
going on in the lives of each staff member,
alerting himself to anything which might
affect their work performance.
After closing time and wrapping up the
admin, everyone heads home, except
Nkosi who still has an hour to go, catching
up on his own admin. “I’m not forced to
leave at six, but voluntarily do so to avoid
the worst of the traffic.”
Since the store opened, a further two have
opened in Soweto.
The company is looking at southern Africa,
where it aims to look cautiously at opportunities
in addition to its single outlet in Namibia.”
Your local plumbing store
19