LibDib offers inventory purchasing and management exclusively to Gold Members when there is sufficient Buyer demand or an operational need to have product available in-state.
As a licensed distributor, LibDib purchases, owns, and pays for all inventory stored in our warehouses. We do not warehouse or store Maker-owned inventory.
Before LibDib begins purchasing inventory, the Gold Maker will enter into an inventory agreement with LibDib. The agreement includes a Floor Stock Adjustment provision that addresses inventory that does not sell within a specified period of time. This allows LibDib and the Maker to establish expectations around inventory levels and slow-moving product before inventory is purchased.
How Does LibDib's Inventory Model Work?
LibDib was built to do distribution differently. One of the most important differences is our Just-In-Time (JIT) model, which allows us to purchase product from Makers as Buyer demand develops rather than requiring large amounts of inventory to sit in a distributor's warehouse waiting to sell.
For most LibDib orders, we continue to use this Just-In-Time approach.
However, we've learned that a hybrid model works best. Some Buyers—particularly chains and larger accounts—have specific delivery windows, order volumes, or service requirements that make having LibDib-owned inventory available in-state necessary.
For Gold Members, when sales demand or Buyer requirements support it, LibDib can purchase product from the Maker, bring that inventory into our warehouse, and store it for shipment to Buyers.
How Much Inventory Will LibDib Buy?
Our goal is to purchase enough product to provide reliable and timely delivery while avoiding unnecessary or aged inventory.
LibDib typically purchases approximately 3–4 weeks of expected inventory, based on factors such as:
- Historical sales and depletion data
- Confirmed or anticipated Buyer demand
- Chain and key account requirements
- Reasonable sales forecasts
- Delivery and operational requirements
For example, if a Gold Maker is consistently selling 10 cases per week, LibDib may purchase approximately 40 cases from the Maker. Those cases are purchased and owned by LibDib, shipped to our warehouse, and then sent to Buyers as orders are received.
As product sells, LibDib can replenish inventory based on continued demand.
Please review the Inventory Request Form for additional information on how LibDib determines and plans inventory purchases.
What Happens If Inventory Doesn't Sell?
LibDib's inventory program is designed to support active sales—not long-term storage.
Before inventory purchasing begins, Gold Makers enter into an agreement with LibDib that includes a Floor Stock Adjustment. If purchased inventory does not sell within the time period specified in the agreement, the Floor Stock Adjustment provisions will apply.
This structure helps both LibDib and the Maker manage inventory responsibly and prevents excessive quantities of slow-moving or aged inventory from accumulating in LibDib warehouses.
Specific terms, timelines, and responsibilities are outlined in the Maker's inventory agreement.
Can I Send Product to a LibDib Warehouse?
Only when LibDib has issued a purchase order or otherwise authorized the shipment.
LibDib is not a third-party warehouse or storage provider. Makers cannot send their own inventory to a LibDib warehouse for storage until it sells.
Any inventory stored at a LibDib warehouse has been purchased by LibDib and is LibDib-owned inventory.
How Does This Work for Chain Accounts?
For many chain placements, having product available in-state is necessary to meet the retailer's required delivery windows.
Chain business also requires additional operational support from LibDib, including purchasing, inventory planning, warehousing, order consolidation, delivery coordination, and account management.
For these reasons, a LibDib Gold Membership is required for chain and key account participation.
For approved Gold programs, LibDib can purchase several weeks of anticipated inventory from the Maker, store it in our in-state warehouse, and ship it to individual Buyer locations as orders are received.
Inventory purchase levels are determined by LibDib based on sales history, Buyer commitments, and realistic expected demand.
Why Purchase Several Weeks at Once?
Purchasing several weeks of inventory can improve both delivery speed and freight efficiency.
Freight savings are generally realized when inbound shipments reach approximately 300 pounds—roughly 7–8 twelve-bottle cases of 750ml products or 15 six-bottle cases.
Consolidating inbound shipments can reduce freight costs while ensuring LibDib has product available to fulfill Buyer orders within required delivery windows.
The Bottom Line
LibDib's inventory purchasing program is available exclusively to Gold Members.
When appropriate based on Buyer demand and operational requirements, LibDib purchases product from the Maker, owns that inventory, stores it in our warehouse, and ships it to Buyers as orders are received.
We do not warehouse Maker-owned inventory, and we do not purchase large quantities simply to keep product in storage. Our goal is to maintain the right amount of inventory to meet Buyer expectations while keeping products moving.
All Gold Members participating in inventory purchasing must have an inventory agreement in place, including the applicable Floor Stock Adjustment provisions for inventory that does not sell within the agreed-upon time period.
- Log into your LibDib account, go to “MY PROFILE” on the upper right hand side.
- Click on “ACCOUNT STATUS” on the left hand side.
- Choose the membership right for your business (monthly and yearly payments are available).
- You will be sent to a secure checkout page via our payment partner Stripe. Fill in the required information.
- A Portfolio Manager will reach out within one business day to start your Membership program.
