A better worded Question needed for next time..6 Sep 2020 23:29
ST: Ok. Is there potential to monetise the same stock twice?
AZ: We, Supply@ME could support the end-to-end of the supply chain. Accordingly, we could work firstly with the manufacturer, and then when the manufacturer sells the inventory, the goods, to their end customer, the retailer, then we could monetise the retail side. Obviously, we cannot monetise the same inventory, as it is a double counted risk. But, in an end-to-end continuity supply chain, if we happily support, right now we are supporting, both the manufacturer side and the retailer side. Thinking about the franchising model, we could support the manufacturer and also the point of sale. But inventories change, it is a rolling mechanism. So the reply (to the question), the answer is yes, but potentially we cannot double count, or monetise, the same inventory.
I do find reading the transcript more helpful than watching the video 5 times and pausing it so thank you KrazyKat!
So while reading that part, It got me thinking about this from the pro active research in May...
The need
Working capital management is a big issue for companies across a wide range of industry sectors. In particular, companies can often have a lot of money tied up in inventory. The following are typical figures for Days Inventory Held by different industry groups according to Supply Chain Digest:
• Aerospace and defence — 47 days
• Speciality chemical — 40 days
• Food retail and wholesale — 23 days
• Diversified industrials — 42 days
• General retail (non-food, non-apparel) — 62 days
So, for example, a general retailer would have 1/6 (62/365) of a year’s worth of sales tied up in inventory.
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We have 3 year contracts. Is AZ saying yes because within that three years, although we can't "double count" the same stock we can have multiple transactions.
My question would be...
Within the 3 year contract. Can SYME expect to have multiple different inventories and transactions from each client, also would the pro active research figures of 1/6th be accurate, would you say you can turn the inventory for each client maybe up to 6 times a year, and would this generate new revenue each time?
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