Improved Financial Performance (Back to top of page)
Increase sales: Members can use the Recipco Exchange to secure additional
business that may be incremental or simply not possible if they relied solely on
cash. Recipco will serve as an alternative channel for the distribution of their
goods and services that could result in new customers and where variable pricing
can be applied.
Conserve cash: Members are able to conserve cash by using their available
capacity to purchase needed goods and services for which they would normally
have to pay cash. This is accomplished by selling their available capacity
through the Recipco Exchange in return for UTUs that they in turn are able to
use to fulfill their procurement requirements. This reduces their working
capital requirements and improves Members’ cash flow, balance sheet and
Reduce procurement costs: Many vendors in a Member company's supply chain
have available capacity and, more importantly, large contribution margins that
Members can take advantage of by using non-monetary trade to complete
transactions where they share in the contribution margin of their suppliers.
This allows the vendors in a Member's supply chain to carry out a form of
discounting without necessarily disrupting their traditional cash business and
effectively enabling Members to reduce their procurement costs.
Reduced Risk (Back to top of page)
Credit Solutions: The Recipco Exchange provides Members a
solution to transact commerce with industry segments and specific customers
that may not otherwise be possible due to credit risk, thus broadening their
client universe. As long as Exchange Member companies possess UTUs, they
can be a viable counterparty independent of their credit risk. Furthermore,
customers who may be in financial distress and unable to pay their accounts
in cash, thus putting receivables at risk, may have the ability to pay them
in UTUs by selling available capacity over the Exchange and earning UTUs.
Also, customers who are Members of the Exchange and can settle with
suppliers in UTUs may be able to make payment sooner, thus reducing
Good Governance: The Recipco Exchange requires each Member to
adhere to a Trade Code, the Trade Rules and the Membership Agreement terms
and conditions for trading with other Members. This, together with the
universal Member acceptance and use of the UTU and the allied governance of
the UTU by the Recipco Clearinghouse, and aided by the Risk
Management Committee of that body, establishes a forum for the conduct of
non-monetary-based trade that is disciplined, efficient, transparent,
effective and optimally secure against external influences. Standard
reporting and accounting ensures that corporate officers of Member companies
can take advantage of non-monetary trade while adhering to the highest
standards of corporate governance and complying with Sarbanes-Oxley.
Improved Competitive Advantage (Back to top of page)
Competitive advantage: Members of the Recipco Exchange will have a
major competitive advantage over those companies that are not members of the
Exchange simply because they will be able to accept payment for their goods and
services in UTUs. Exchange Members with positive UTU balances will be highly
motivated to purchase from other Members using UTUs before considering a
purchase from companies that are not members of the Exchange. This will allow
Members to increase sales at the expense of their non-Member competitors.
Members can also encourage existing trading partners to join the Exchange,
thereby strengthening trading alliances.
Increased market share: Recipco enables Members to secure additional
market share by using the Exchange to attract new and incremental business from
clients who are Members of the Exchange and who desire to purchase a larger
portion of their requirements using UTUs that represent their available or
underutilized capacity. Only vendors who are Members of the Recipco
Exchange will be able to compete for this business.
New distribution channel: By active involvement in the Recipco
Exchange, a Member company can access the Recipco membership as a new way
to distribute products or services without disrupting existing sales channels.
Protection of cash market price: A company that wants to protect the
market pricing for its goods or services can join the Recipco Exchange to offer
goods and services at variable pricing to the market without compromising its
existing pricing strategy or cannibalizing its current cash business.
Enhanced Operating Efficiency (Back to top of page)
Capacity utilization: The Recipco Exchange provides Members an
exclusive private, Internet-based marketplace to trade and obtain value for
underutilized production capacity. This alternate distribution channel provides
Members a chance to improve utilization of their available capacity. It also
provides associated opportunities to maximize return on capital and production
investment and to control inventory more effectively.
Multi-lateral trading: The Recipco Exchange, together with the
stored value UTU, enables companies to complete multilateral trades among
Members and solves the problem of bilateral trade where each party has to want
the other party’s goods or services in order to conclude a transaction.
Capture value: Companies listing goods and services on the Recipco
Exchange can obtain value for undervalued products, services and assets,
including outdated inventories and perishable products such as media, hotel
rooms, airline seats, printing, transportation and some forms of energy.
Efficiency savings: Working with Recipco offers Members the chance
to replace ill-designed, paperbound processing systems with a streamlined,
well-designed approach to non-monetary trade. Consequent efficiencies inevitably
lead to costs savings.