Street Corner Urban Market is a franchised merchandising business with shops all over the US. The concept is closer to traditional convenience stores, but done with more stylization. These are convenience stores that sell primarily food; the company purchases products from well-known American brands, such as Lay’s. The relationships with the suppliers are well-established and very long-standing. PACA uses FOB shipping guidelines for food: in a FOB Destination shipping agreement, the cargo becomes the property of the buyer when it reaches the specified destination during the delivery process (2022). In the case of a grocery store, the seller pays for shipping. In large companies, this cost is not a large percentage and is approximately at the level of 2 percent.
The organization is most likely using the 2/10 system, as it is specific to the grocery store. With trusted suppliers, paying in advance and getting a discount is profitable, and fresh supplies are needed very often. The Street Corner Urban Market network is large, with a well-established supply chain. The fully automated document management system must meet the requirements in accordance with the requirements of the company; natural payment, respectively, occurs electronically. Inventory should be done on a daily basis; however, it depends on the individual franchise owner. The inventory process begins at the stage of a warehouse with products, which are then subject to additional accounting in stores (Almutairi et al., 2022). Gross margin percentage is definitely used to measure sales performance. Although this type of business organization is very efficient, it is necessary to measure the coefficients for each store. This will help the owner to understand in which sales are the most frequent, and in which the particular product is sold better.
Almutairi, A. R., Quttainah, M. A., & Almutairi, H. A. (2022). Inventory-management efficiency and consumer co-op financial performance. Journal of Accounting, Finance & Management Strategy, 17(1), 17-52. Web.
PACA. (2022). Good Delivery Guidelines. Agricultural Marketing Service. Web.