Managing supply chain risk requires much more than addressing logistical issues. The most effective supply chain risk management capabilities align and integrate with related marketing and finance processes and considerations.
It might be tough to see how corporate trade, travel, and charitable donations are connected, but Active International’s strength is its unique ability to recover or create value through corporate trading. In this case, there was an opportunity to create a donations program using our clients’ everyday budgeted group meetings and Active’s existing travel investments and inventories in our portfolio of hotels and resorts.
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.