Case Study: Excess Inventory

Challenge

A leading global packaged goods company (Client) had produced more than 200,000 cases of a protein drink for one of their big box retail partners. Shortly before the inventory was to be shipped, the big box retailer had revised the order to 75,000 cases, leaving the Client with more than 125,000 cases of excess code-dated inventory.  

Solution:
Anchor paid the Client their full wholesale price and took immediate title of the inventory. Anchor resold the inventory into various secondary and tertiary channels that did not conflict with any of the Client’s primary sales channels. In addition to paying full wholesale, Anchor absorbed the cost of freight of more than 80 full truckloads.

Execution:
The Client used the Anchor Trade Credit to reduce cash outlays for media in the areas of cable TV, programmatic digital, radio and out-of-home. All media matched the Client’s net costs and buying guidelines which were independently developed by the Client’s agency.

Benefits:
• The client was able to recover their full wholesale price as well as freight costs for the entire inventory without disrupting any of their primary sales channels.
• Media was delivered adhering to the established media buying strategy and pricing developed by the Client’s media agency.