Our story
The concept for Novanty originated from our contract manufacturing and sourcing service called Part Distribution LLC. Our scope was to reduce the cost per unit of our client’s inventory through enhanced supply chain management and strategic sourcing. Over time, we developed an impressive and efficient process for reducing cost while maintaining or exceeding quality expectations.
The problem however was though we could easily reduce the businesses cost per unit, they still had to order in bulk from the supplier. For the most part these bulk orders had to be paid for up front. Especially for clients with a large catalog of products, that was exceptionally hard on their cash flow and severely limited their growth.
Our clients were opting for suppliers with low minimum order and high cost per unit instead of suppliers with low cost per unit because of their high minimum order. They would happily pay 20% more per unit than they had too so that their cash flow wasn’t so strained.
Our “Aha!” moment came when we started thinking about that 20% savings as a 20% return on investment that they were just leaving on the table. We realized that if we were to buy the bulk order from the lower cost supplier, we could then sell it to them as they need it and make that 20% for ourselves. We then realized that our return would actually be 25% because a 20% discount is actually a 25% markup.
Word started to spread, and we quickly found ourselves with more demand from our clients than we could provide with our own capital. We also found a lot of interest from other people wanting to buy inventory themselves to resell for a profit the same way we were. The concept for Novanty was born.
About Us
Novanty is an innovative new Minnesota based financial technology startup made up of Manufacturing, Supply Chain and finance experts.