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It will take on inventory risk and act as a troubleshooter for small firms.
Trading companies, for example, have traditionally been distributors for steel makers, making money by taking on inventory risk.
He won't take on inventory, which means brands are on the hook for merchandise that doesn't sell.
"The big stores have cut back on inventory drastically".
The Impact of Customer Response on Inventory and Utilization Policies.
A robust economy can't be built on inventory replacements.
In fact, its market is long on demand and short on inventory.
"You can't cut back on electricity or heat, so you cut back on inventory," he said.
Jeannie Macone, of Florida, is cutting back on inventory for her trinket and home décor business.
It generated $145m in revenues but Groupon spent $127m on inventory, shipping and marketing.
He has cut back on inventory, meanwhile, reducing his purchases from steel mills.
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