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 in Australia they were able to achieve their two major objectives through a bespoke external model managing SLOB inventory.  

Challenge

  • The globally trusted producer of quality foods was seeking a better stock management system to eliminate any financial losses from unwanted excess stock and reduce waste while keeping a strong media spend to promote existing and new product lines.

 

Solution

  • To address the client’s objective, the Active team worked on a customised model that guaranteed an immediate increase in financial return through a Trade Credit solution which tapped into media spend to return cash to the business, reducing losses from SLOB.

  • Active were also able to introduce new sales channels and move more of the inventory each month than what was being achieved through in-house management.

 

Execution

  • Through Active’s Trade Credit solution, the client was able to restore value to their underperforming assets achieved by tapping into existing media spend.
  • The customised SLOB solution allowed the food and beverage company to free up internal sales personnel, improve return organically, and allowed for the use of Trade Credit’s cash-saving solution. 
  • Through Active’s remarketing network, they introduced new sales channels to move more stock and establish an ongoing partnership.

 

Benefits

  • Financial benefit – The FMCG client more than doubled their previous years’ annual SLOB sales, equating to an additional $1.5milion added to the bottom line. The first 12 months of the partnership returned over $2.4M cash and $350k trade credit which equals a total of $2.78M in actual value.
  • Stock management benefit – Addressed the current trend of emerging delayed deliveries, unavailable stock, ongoing effects on buyers / orders.

As a financial solutions partner, Active is able to help their business grow, increasing return for our client, reviewing results and monitor existing agreements along the way and always working collaboratively to maximise monthly orders and add new sales channels.

To explore how Active International can help your business achieve more, get in touch.