Search results for All Insights, All Years
The concept that business strategies should be judged by the economic value they create is commonly accepted in the business community. Companies often, in the ordinary course of business, produce some amount of excess inventory, capital goods or real estate as technology advances, supply outpaces demand or changes in the business environment occur. These excesses, overstocks or under utilized assets are also referred to as “underperforming assets” and represent a substantial corporate value opportunity that is often times suboptimized. Corporate trade is a strategy to create value typically in the form of cash savings or incremental business. Amazingly, while corporate trade creates substantial economic benefi ts, it is often misunderstood and consequently overlooked.
The fifth-largest food and beverage company in the world, with eight $1 billion+ brands under its belt, had been managing their surplus inventory in-house and were looking to explore ideas focused on efficiencies and reduce write-downs to the business. Partnering with Active International they were able to achieve their two major objectives through a bespoke external model managing SLOB inventory.