Case Studies

Surplus Gaming and Desktop Accessories 2014 to 2015

In May 2014 we were given the opportunity to work with a global software giant to clear out surplus accessories in order to help their service agents facilitate a pan-European warehouse move".

They required a partner who could react fast during a time critical phase of their operation avoiding any delays in moving a large volume of stock before they shifted their operations.

A2C Involvement:

A2C"s opportunity was to purchase a large volume of gaming and desktop accessories, products that previously we had very limited market knowledge. We accepted the offer as we saw that we could bring value to the supplier with our ability to react fast and with flexibility. We kept to the suppliers target requirements with no delays from the point of notification that stock was ready up to the time we collected it. Furthermore, with our motivation to enhance the relationship with our supplier, we very quickly developed an extensive customer base for the stocks that previously we did not have a market for. This enabled us in some cases to achieve higher than expected margins which in the interest of the relationship we returned as to our supplier as additional revenue.

Clients Comments:

From the offset when we first started dealing with A2C we were pleased at how attentive they were to our requirements and how effortlessly they went about their business dealings with us. Coming from an environment full of internal bureaucracy it was engaging to work with a company with refreshing ideas as to how to conduct business quickly and efficiently. Their ability to commit to and take on large volumes of stock with no hold ups to process or payment was very professional. We would not hesitate to work with them again given similar opportunities and circumstances.

Reverse Supply Chain Management 2012 to present

In July 2011 the world's leading global manufacturing solutions provider with 200,000 employees located in 33 countries and with an annual turnover of $17 Billion usd approached A2C with the question of "What help would you be to our reverse logistics strategy".

They had internal demands on them to achieve certain financial and environmental targets and were curious as to what skills A2C could bring to any relationship. Before this time neither company had done any business together and as such had no history of how each other worked to fall back on.

A2C Involvement:

A2C took on the task of developing in partnership with the company channels for large amounts of RMA excess. Channels where explored and developed for various parts including laptops screens and motherboards that resulted from the companies repair programs. The relationship was developed very much as a two way street from a financial and informational perspective and as such the task of creating the best return became the core focus. Developing the channels takes time and we were conscious that opportunities where hard to judge at the start stage of any stock flow. Subsequently the relationship was run under our Passback Program which allows us to flow back to the company excess funds that develop through any acquisition that was not priced exactly correct due to unknowns. It is hoped that A2C has displayed very solidly our commitment to any long term relationship above short term financial gain and that this relationship continues to develop on a mutual beneficial path for the future.

Clients Comments:

A2C brought a new marketplace to the table and over the next twelve months successfully integrated their forward channel supply chain with our reverse supply chain creating new strategic avenues for part sales. The team at A2C are very professional, available around the clock and always willing to tailor solutions to suit our business models and deadlines. Their strength lies in their long time experience of this market segment and their openness to share this best in class knowledge with their customers. I would not hesitate to recommend A2C Services to any of our Clients.

Customer Returned Tablets Project 2013

A large UK retailer needed to sell in excess of 15,000 Tablet computers which had been returned from customers. They had a target per unit which they needed to achieve to allow for the stocks to be released from their accounts. All stock had to be shipped outside the EU to avoid competing with established sales channels.

 

A2C Involvement:

We agreed to buy the stock at the desired price and requested that it was all packed onto 80 pallets ready for loading into 2 40" shipping containers. The stock was paid for at a price of $400,000 within 48 hours of the deal first being advised and was shipped out to our UAE office within 3 days. In our UAE office the stock was fully tested and refurbished and repacked in new retail boxes.

The stock was sold throughout the Middle East region and no impact in the EU distributor channel was caused.

Clients Comments:

"The transaction with A2C was very professional and without error and provided us with everything we needed to move forward. From an initial phone call to the stock paid for and leaving our site was no longer than 5 working days and was exactly what we needed when we needed it. We would have no hesitation in dealing with A2C again"

Dell PC/Laptop Project 2012/13

A worldwide Asset Management company holds a contract to refresh an average of 15,000 PC/Laptops per month for 3 years. The company prefers to work with only a few key partners and discussions between the company and A2C where initiated.

Because of the nature, size and length of the contract it is important that control is maintained on the sale of the stocks when considering aspects like Geography, price and market impact.

A2C Involvement:

With a project of this nature it is key that A2C gained trust and took on the clients particular concerns. Any relationship will be short if A2C does not understand what is key to each particular client.When the project initiated sales a price had already been agreed and a backlog of stock needed to be dealt with to align with year-end financials. The company relied on A2C to collect and pay for over 20,000 in a 2 weeks period which had to be cleared funds and the stock had to be out of their premises.A2C achieved all that was asked of it and the project is still running at the time of writing this Case File. To date in excess of 60,000 units have been collected by A2C at a value in excess of $5M

Clients Comments:

A2C is a valuable business partner for three primary reasons:  Distribution, Pricing, and Service.   Their broad customer base allows us to achieve our goal of keeping prices stabilized by selling product around the world, without over-saturating one particular market.  We have implemented a mutually-beneficial pricing and volume grid that allows both companies to properly plan and execute selling activities.  Their service is best-in-class.  They wire funds immediately upon invoice, pickup within 5 days, and the support staff is very responsive. They are a pleasure to do business with, and we are proud to consider them a strategic customer. 

Ex Set Top Box Hdd Project 2011/12

UK Recycling company was tasked with reverse engineering in excess of 225,000 Set Top Box which had returned from the end user field. All the units contained a 320Gb Hdd which still had a value separately. The recycler needed a partner to facilitate the data-wiping and refurbishment of the hdd and then the resale for the maximum amount of revenue while also selling at a pace which allowed for the funds to flow through the project.

A2C Involvement:

Through a Hdd partner company it was arranged that a 24Hr. shift pattern would be initiated to data-wipe and refurbish the hdd at a rate of 4000 units per day. Once the stocks were ready to be shipped from the site A2C organised sales of the hdd by the pallet to equal the amount of hdd available. Stocks were sold and shipped all over the world allowing for the funds to flow back into the project. At no point did stocks available for sale sit more than 7 days after they were available for sale.

Clients Comments:

"There where so many parts to this project at the front end that it was key for the back end to not be a problem. Getting A2C involved and leveraging their financial strength and their huge sales channels for this type of stock allowed for the project to flow through unimpeded by cash flow. Our client received the expected funds on time every time, so much so that we continue to use A2C for all or ex STB hdd sales through large and small projects in the exact same way today"

German System Integrator Project 2009/10

Large System Integrator with a turnover of €200M had a refresh project involving 120,000 Desktop PC over 3 brands.The stock would come out over 6 months at a rate of around 5000 units per week and the key was to keep the stock flowing out as fast as it flowed in and to keep the financial part turning. Total value of the project was $2.6M

A2C Involvement:

Directors of A2C flew to Germany within 2 days' notice and a deal was struck for A2C to buy 80% of the stock allowing for the balance 20% to be sold in smaller quantities to increase the average price achieved.

When each full truck/container was ready to ship an invoice was produced and payment was received within a few hours.

Part way through the project it was agreed that A2C would also buy the balance 20%.

All the stock was sent to A2C UAE office where it was stripped for parts value as this increased the return.

Clients Comments:

"When speed and financial commitment are needed from a partner then there is no better partner to have than A2C.
When negotiations are completed A2C bring to the table the fact that us as a company can continue to do our part of the incoming project without having to worry about the flow of stock out our building, this is key to the smooth running of any large project.
Many companies can bring one or two parts to the table but A2C is positioned well to bring all that we need from financial power and commitment to the simple part of doing exactly what they commit to in the timeframe they committed to."