Financial Tools

As our business name states, SCO is focused on holistic solutions to supply chain issues. In this vein, we feature several unique leading edge financial tools - not available through any other source - which can provide significant cost reductions to our clients.

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SCO is partnered with a major financial services provider and Class 1 railroads in a program through which inventory investment can be delayed from client books while in- transit for a specific time period. What many businesses don’t recognize is that even if they don’t actually receive an invoice for inventory carrying cost, it is a real expense which impacts corporate financial performance. And while inventory carrying cost can vary from company to company it is often much higher than many expect, ranging from 12% to 25% annually.

So how can SCO lower inventory carrying cost for clients? Our financial services partner has among the lowest cost of capital in the US much lower than most of the businesses we service. We bring this financial leverage to bear on our client’s inventory to reduce costs.

The essence of the program is we take title to inventory when it is in motion between two separate businesses, effectively removing the cost from both the shipper and receiver for a period of time. We create client value by utilizing low cost money and efficient transportation management. Client benefits include: less inventory, higher turns, improved cash flow, lower more stable transportation cost and reduced workload.

Dedicated Cold Storage Equity Solutions
SCO provides full support turnkey new construction of warehouses including design, build and financing for the entire project. Our leasing program gives clients the ability to lock in annual costs for the entire term of the deal and an opportunity to actually reduce lease costs after the initial term. Our net bond operating lease program is designed to meet true tax lease requirements under FASB rules.

SCO is partnered with Hansen-Rice [www.hansen-rice.com] a major design-build firm with over 20 years of experience. Hansen-Rice is licensed to build in 49 states, Canada, Mexico and Argentina and has completed projects for Wal-Mart [11 distribution centers], FedEx and numerous logistics companies.

The bottom line with SCO’s financial tools is reduced total cost with increased management control over service and supply chain performance.

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