The challenge
One of Australia’s biggest retail department stores had slow moving stock. They were looking to recover full value of the stock.
Our solution
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Active purchased the stock at its original list price using Trade Credit. The Trade Credit issued to the Department Store was three times the assets fair market value.
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Active remarketed the stock through a market sale.
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Active then identified with the client’s areas of their procurement spend to utilise their Trade Credit which best fitted with their business requirements.
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The client was then able to use this as part payment towards a number of their procurement areas, particularly media and freight.
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The Department Store was able to realise full value for the stock by receiving the full market value of the stock.
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They were able to use a Trade Credit to deliver value in a number of their procurement areas.
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Delivering to the client better returns on excess stock and driving value back into the business in key procurement areas.
The Benefits
- The client realised the full value of their excess stock
- The client was able to use their Trade Credit to deliver value in a number of their procurement areas.
- Generated profit from the sale of the slow moving stock.
