What is the difference between stock and indent trading?

Stock trading means the dealer purchases timber into their own inventory before having a customer order — they carry the financial risk of holding stock but can offer immediate availability. Indent trading (also called back-to-back or drop-ship) means the dealer only orders from the supplier after receiving a customer order — lower financial risk but longer lead times and dependence on supplier availability.

Stock trading means the dealer purchases timber into their own inventory before having a customer order — they carry the financial risk of holding stock but can offer immediate availability. Indent trading (also called back-to-back or drop-ship) means the dealer only orders from the supplier after receiving a customer order — lower financial risk but longer lead times and dependence on supplier availability. Most successful dealers operate a hybrid model: stock standard items (C24 in common sizes, popular sheet materials) for immediate availability, and indent specialist items (bespoke glulam, unusual species, large quantities) to avoid tying up capital in slow-moving stock. The stock-to-indent ratio typically ranges from 60:40 (general merchant) to 20:80 (specialist/project dealer).

Why this matters

This question relates to Timber Dealer Margins & Distribution: Industry Guide, which covers the broader topic in detail. Understanding this specific aspect helps architects, builders, and timber dealers make informed specification decisions.

For full context and additional technical detail, see our comprehensive guide:

→ Timber Dealer Margins & Distribution: Industry Guide

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About this answer

This answer is part of the PuurModulair Knowledge Base — comprehensive timber specification guidance for architects, builders, and dealers across the UK, EU, and Scandinavia.