"AAG uses margin created from its global trading activity to fund programs specifically built to deliver incremental value to small and medium size companies."
AAG’s Focus Is On Four Business Activities:
1. GROWING REVENUE: AAG has successfully structured incremental revenue for its clients both domestically and internationally. In many cases, AAG locates the customer(s), builds interest for the client’s products, structures the financing, and often directly manages the delivery. In most exchanges our clients accept a blend of cash and trade credit in their payment terms. The acceptance of trade financing creates two significant value-adds:
Ø Ensures AAG has the maximum flexibility available for structuring
Ø Provides our clients a distinct marketing advantage in global and domestic markets
2. COST CUTTING -- The AAG Sourcing Solution
[ now
branded as the AAG/BSA Savings Program] allows clients to acquire goods and services at the same favorable terms of many Fortune 100 companies. AAG creates this value added by leveraging the combined purchasing power, which is measured in the billions, of all its alliance partners. This leveraging technique is called consolidation. And combined with other economic incentives, it allows AAG to structure extremely favorable terms for its clients -- terms, which typically can only be structured by organizations with enormous leverage. The AAG Sourcing Solution is a proprietary 'one stop shopping' e-commerce sourcing solution. The e-commerce system can fulfill most of the client's day-to-day purchasing needs [orders made by 4 PM are delivered the next day and all orders are free of freight charges].
3. INCREASING RESOURCE EFFICIENCY: AAG’s countertrade programs have increased resource efficiency for our clients. We have exchanged trade credit for impaired and obsolete assets; thereby allowing the client to recover 100% of this asset’s original value and avoid a forced write-off. AAG can provide many non-cash deliverables such as bonus advertising or free inbound storage. And as an additional incentive for many of our clients, AAG may build in trade credit premiums to its structures as a form of profit sharing. These premiums may increase our client’s wholesale pricing or, depending on the client’s accounting of the premium, create additional purchasing power, .i.e, you get a bigger bang for your buck! These AAG programs will void write-offs, reduce costs without affecting the supplier’s margins, and increase over all resource efficiency.
4. COUNTERTRADE MANAGEMENT: Of the many countertrade activities AAG may be involved in, such as unwinding offset positions or overseeing one-off barter transactions for clients, AAG is largely focused on building and managing programs to support the participation of small and medium size companies in countertrade [typically, countertrade is only utilized by governements and very large companies with large spends]. As part of this effort, AAG has developed proprietary tools that ensure our programs are complementary to the client's existing operation. Our programs source goods and services to our clients and are built to accept trade financing as part of the payment terms. Our clients do not have to invest additional overhead or other resources. We believe our programs are 100% complementary to our client's existing operations.
AAG programs will recover the value of expired trade credit!
Contact us to learn more.
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