Most computer retailers will do drop ship orders from a distributor for items they do not have in stock since this is less risk. NCIX charges customers in full for items they don't have in stock and then orders it from a distributor or vendor. Many customers got caught in this process as NCIX changed the website months ago to make items they don't have in stock and were in stock with distributors look like they were actually in stock at NCIX. They removed the on hand inventory information to complete the ruse. As you can see from the creditor list NCIX owed over 15 million to the big distributors in Canada and was on credit hold with them. In addition the creditor list shows how few remaining brands they were still buying directly from. They ran up credit cards trying to order product prepaid from either distributors or vendors or in many cases other retailers like Amazon or other local computer stores. Some customer orders got filled but a lot of money was used to pay creditors instead. This is why you have customers complaining about orders 3-4 months old that were never filled.
They also had consignment deals with some of the vendors that you can see on the filing. For those they sent inventory to NCIX then NCIX would give them almost all of the profit from the sale and pay for the inventory as it sold to customers.