Ormita Commerce Network奧美達全球易貨系統

1. Cash flow problems• Often long-term• Affects survival of company

2. Over-stocked/ Idle Capacity• Tied-up capital, especially cash• Increased warehouse cost• Obsolescent excess inventory• Decreasing market value

3. Saturated cash markets• Keen competition• Saturated market shares• Decreasing market price vs Increasing sales and marketing expenses

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Common Corporate ProblemsPurchase

Sales

Revenue

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Ormita Helps Members…1. Buy goods/ services at a Discount

– Gaining back previously lost profit – Save on cash expenses by using credits for purchase

2. Turn idle capacity or excess inventory into valuable resources– Barter away “dead capital” for valuable resources

3. Work with businesses to grow their cash customer base – Identify and create opportunities– Increase turnover– Win customers from competitors

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Cash profit

Revenue Costs Revenue Costs

Cash profit

Ormita Credit

Ormita Credit

Normal Business Mode

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Barter in Modern Times

• Achieve flexible resources exchange without cash

• Overcome the limitations of cash

• Maximize products’ circulation

• Provide information of barter to members

• Acts as a professional E-Commerce platform

Foundation Core Value

Objective Mode

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Ormita Barter Process

Initial communicat

ion

•Preliminary understanding of product specifications, quantity and price

Negotiation

•Enter into engagement after confirmation of transaction details e.g. quantity and price

Contract

•Enter into contract based on the agreement

Performance

of contra

ct

•Transportation of goods

Client A signs up with Ormita• To be given detailed terms and conditions• Signs up Membership Application Form • No payment is required• Clients is given a Ormita account to check out

their trading history

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Broker A contacts Client A• Understands client’s offer of products and services, – i.e. prices, specification, terms and conditions, etc.

• Finds out and understands the Wants of clients, i.e.• Top 5 regular expenses of Clients that could be traded

through barter . A purchase request form would be filled in by Client A.

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Mix and Match in Ormita Commerce Network• A mass email campaign would be broadcasted to announce

the engagement of client A and the offerings. • Entries would be created in the online network according to

the Wants of Clients A. These entries would be reviewed by other Brokers who represents other members that might have offers to satisfy Client A’s wants.

• Broker A would review entries of other members to find out how Client A’s offers could be sold to other members

• Business Development Division would source out new members if currently the network cannot satisfy the wants of Client A.

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Negotiation and settlement between buy-side and sell-side • If entries are successfully identified and matched, broker would

initiate the initial contact between the two parties• The two parties would negotiate on the terms and conditions,

with the broker helping smoothening the process (Any special settlement required? Partially barter partially cash? )

• Should the negotiation and settlement be successful, the accounts of the buy-side would be debited and sell-side credited after the Broker has confirmed the satisfaction of both parties.

• Should the negotiation be unsuccessful, the Broker would source other members to satisfy the Wants or Offers of Client A

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Notification and Payment to Ormita • Each month, a statement would be sent to Client A

about the trading history and amount. • Client A could always access to the online statement

with his or her account. • The amount of commission would be listed in the

statement and settlement should be made each month.

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1. BlueScope Steel– Purchase: AUD25,000 hotel vouchers– Sell: Remaining steel– Steel was sold to non-cash customers of BlueScope– Won customers from competitors

2. M.A.C. Cosmetics– Purchase: €68,175 Advertising– Sell: Obsolete Stocks in warehouse– Attract more cash customers without spending cash

3. Nokia Electronics– Purchase: USD89,715 Printing and Packaging services– Sell: Incorrect packaging and product backlog– Turn “dead capital” into useful resources

Recent Trade StoriesDec 2010 – Jan 2011

Trade Example-product/services

• A wine distributor sold HKD100,000 red wines• Commission charge on sale: HKD100,000x7% = HKD7,000• The wine distributor gained HKD100,000 Ormita credits• The wine distributor can purchase HKD100,000

products/services from Ormita’s clients – Purchased HKD100,000 accounting services

• Commission charge on purchase= 0%

Trade Example-Advertisement/ Expo Booths

• A wine distributor purchased HKD100,000 advertisement from Ormita’s medias

• Commission charge on purchase: HKD100,000x7% = HKD7,000• The wine distributor owed HKD100,000 Ormita credits• The wine distributor has to sell HKD100,000 products/services to

Ormita’s clients• Commission charge on sale= HKD100,000x7% = HKD7,000