Warehouse receipt based financing is a kind of inventory financing, wherein loans are given to manufacturers and processors (borrower), by way of pledge of warehouse receipt i.e. against commodities held as collateral. The borrower (eg: farmer) deposits a certain amount of goods into a warehouse deposit and regulatory authority (WDRA) accredited warehouse in exchange for a warehouse receipt which has all the necessary details like quality and quantity of the produce. The warehouse receipt can then be transferred to a bank, which provides a loan equivalent to a certain percentage, generally up to 70-75 per cent of the value of the collateral with the warehouse. At maturity, the borrower sells the commodity to a buyer who then either pays the bank directly or pays the borrower who then repays the bank. On receipt of the funds or an acceptable payment instrument, the bank surrenders the warehouse receipt to either the buyer or the seller (depending on the specifics of the transaction), who then submits the warehouse receipt to the warehouse, which releases the commodity. In case of default on the loan, the bank can use the warehouse receipts in its possession to take delivery of and sell the …show more content…
NWR, defined in Section 2(m), means a warehouse receipt under which the goods represented therein are deliverable to the depositor or order, the endorsement of which has the effect of transfer of goods represented thereby and the endorsee for which takes a good title and a non- NWR is defined as a warehouse receipt other than a negotiable warehouse receipt. Accordingly, warehouse receipts may be transferable by simple endorsement/ signature. NWRs are transferred by endorsement and delivery i.e., the original depositor or the holder in due course (transferee) can claim the commodities from the warehouse. NWRs can be traded, sold, swapped and used as collateral to support borrowing
Prior to Fuller’s transfer, management at the Carson’s location was poorly run using the classical approach. While this approach can be successful, management has to find a good middle ground between caring for the company and caring about their employees. A traditional classical approach recognizes that there are five important factors to running a successful business (Miller, 19). According to text, these factors are planning, organizing, command, coordination and control (Miller, 19-20). These factors can be seen when you look at Third Bank as a whole. In the study, the CEO saw the issues in his company and put a plan together to improve. He had meetings with management, like fuller, to organize a solution. He then commanded all locations
Costco Wholesale Corporation was an uncommon type of retailers called wholesale clubs. These clubs differentiated themselves from other retailer by requiring annual membership purchase. Especially in case of Costco, their target market is wealthier clientele of small business owners and middle class shoppers. They are now known as a low cost or discount retailer where they sell products in bulk with limited brands and their own brand. The company is competing with stores like Wal-Mart, SAM’s, BJ’s, and Sears. The case begins with an individual shareholder, Margarita Torres, who first purchased shares in 1997 and who is trying to evaluate the operational performance of the business in order to make a decision rather or not purchase more shares
receive bank financing for this new entity of HKD 2.3bn as a Delay Draw Term Loan (“DDTL”) plus HKD
A firm’s receivables account constitutes amounts owed to the company by customers, employees, or the government (Gibson, 2011). The account typically increases as a result of normal business operations where a company offers products or services to customers on account (Gibson, 2011). A company’s days’ sales in receivables is one of two measurement tools used to evaluate a firm’s trade receivables liquidity (Gibson, 2011). It is considered to be a gauge of a company’s ability to collect funds in relation to the credit terms it offers its customers (Bujaki & Durocher, 2012; Gibson, 2011). Essentially it calculates the average age of a company’s receivables account at the end of the year (Bujaki & Durocher, 2012; Gibson, 2011).
What do you see as the pros and cons for nonprofits of engaging in large-scale earned-income ventures?
C & C grocery store currently operates under a goal approach. They were committed to customer service and satisfaction. This approach provided the grocery chain with the profitability and growth they strived to obtain. The stores operative goals were attained and the chain had over 200 stores in operation. For years overall performance for C & C was excellent and came with ease. Unfortunately employee development and innovation and change weren't a top priority and it began to show. To remain successful C & C had to outsource and get advice from a team of consultants. The team dissected the company from top to bottom and advised the chain to implement an internal approach to go along with the goal approach. Implementing the internal approach will give the store managers full control of their stores which they do not currently possess. The store managers should be knowledgeable in all areas of the store to be able to fully communicate with staff. It was difficult for the district managers to give each store location the time and attention they needed when they were responsible for several other stores. Giving store managers more responsibility was a terrific idea of the consultants because the store managers have more day to day customer and employee interaction and could better assist needs. C & C was in desperate need of providing employee training and development. Cross training is beneficial for company as well as employees. Employees get the opportunity to learn other job positions and have the ability for advancement opportunities within the company. The company benefits from cross training because it provides flexibility if a store is short staffed, and it provides empowerment. A store full of happy employees from mana...
The receivables turnover is based on the assumption that all sales are credit sales. The values of receivables turnover for 2004 and 2005 are 10.21 times and 8.83 times, respectively. This means that IQ’s efficiency is considerably declining in terms of cash collection. The decrease in receivables turnover is explained by the higher increase in average net receivables (71%) than the increase in net credit sales (25%).
The METRO Cash & Carry (MCC) company was established in 1964. In that year, the first full scale METRO Cash & Carry wholesale store opened in Mülheim an der Ruhr with selling space of 14,000 square metres. That was a new dimension in food and non-food wholesale. The MCC company was founded by the two brothers Wilhelm Schmidt-Ruthenbeck and Erwin Schmidt as well as the Schell family, owner of a wholesale company for electrical appliances. Soon, Otto Beisheim was nominated as the managing director of METRO-SB-Großmärkte GmbH & Co. KG.
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
status of freight charges (prepaid or collect), and date of shipment. The letter of credit requires very sensitive expiration dates as well. Consequently, Logan needs to be very disciplined with his cash flow liquidity and to always be aware of possible supply bottlenecks. If these requirements are not met, the importer does not have to pay Logan. Furthermore, the documentation
The organization’s goal is to improve 10% of productivity. To achieve its goal the organization has implemented a custom-built warehouse management system (WMS), which has had an enormous impact on productivity. But in order to ensure that the system effectively supports warehouse operations, Tony has analyze the systems by checking were to be delivered by this system, rate of the system being out of order and impacting on the packing of orders, the duration to train new staff members to use the system, and the how do customer’s orders process sufficiently assisted. Tony has also documented the process form order receipt to dispatch) to assist with his analysis, and to help him to understand the exact process followed in packing an order. He has completed SOWT analysis and reviewed on staffs’ performances, KRAs and KPIS to measure and analyze the process of organization.
One of the limitations of this study is limitation of data and sources. The information and sources for the world class warehouse performance is not many and only short description only. Because the issue of world class warehouse is still new and not much can make comparison between that. For the journal and article that related to world class warehouse
It usually implies that the debtor has received something from the creditor, in return for which the debtor has promised to make repayment at a later time. The relationship between a debtor and creditor can be positive if everyone follows the terms that were agreed upon at the onset of the contract, but it does not take too much of sentiment to turn negative if one party fails to hold up the bargain. The debtor-creditor relationship can be made up by many different individuals, business and parties that make the financial system operate. For example, the relationship between retailer and supplier. While it is the function of a retail outlet to sell merchandise to customers, business activity would not be possible without a supplier to provide the inventory. New retail and supplier relationships are developed everyday as product developers seek to obtain the greatest distribution possible. Upon delivery, a retailer may sign a contract for new merchandise and the supplier will likely mail a bill to the business at a later date. Debtors and creditors in a retail situation may agree to some incentives, such as discount pricing in exchange for placing orders of a certain size. This illustrated the debtor-creditor relationship between a retailer and
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods
Fill the utilitarian need of giving transportation and assurance to stock purchased in retail foundations of numerous types.