By: Dylan Sikes - AllPennyStocks.com News

Tuesday, August 19, 2014

Competitive pressures have put the squeeze on margins in the retail industry, forcing companies to consider how they operate. Companies have to look through every aspect of the supply chain, including analyzing how much stock is kept on shelves or if to use just in time delivery methods and consideration as to how to handle returns in order to keep prices low and profits as high as possible. According to Reverse Logistics Magazine, grocery retailers were the first to devote serious attention and implement new procedures in reverse logistics, which is, in short, the opposite process of controlling product flow to reach the consumer. That can mean moving expired product and dealing with damaged or returned product, to name just a few things. Safe to say, the cost of reverse logistics can add up quickly for retailers and suppliers and sap profits for essentially unused goods.

Ontario-based SEL Exchange Inc. (TSX-Venture:SEL), through its wholly owned subsidiaries SLM Logistics Corporation, and Service Results Technology Inc., is dedicated to fully sustainable reverse logistics to manage consumer and retail store returns and problematic electronics through a product management system.

The company provides a full range of services to deal with returns, including managing warranties, quality assurance testing, factory servicing of electronic returns, resale of returns and end of life methods, largely through a robust recycling program of non-saleable items. According to SEL Exchange, independent audits show that the company achieves a consistent waste diversion rate in excess of 98.6 percent, meaning that only a negligible amount of the products it handles end up in a landfill.

SEL Exchange only has operations in Ontario and Tennessee currently. SLM Logistics Corp. has a facility in Toronto that is in excess of 100,000 square feet that services several large retailers; i.e. Canadian Tire, Costco, and some recognized names in home electronics, JVC, Euro-Pro (makers of the Shark brand) and Conair to name a few. This division processes over three truckloads of units each day from over 12 product categories, equating to more than 10,000 units monthly.

Details were not provided in a press release a week ago, but the company did say that “a large U.S. based retailer” that is currently doing business with SEL has added an additional product line for SEL’s end of life services that will generate significant additional revenue.

In a bid to further expand its presence in the States, the company on Tuesday reported that its US subsidiary entered into a distribution agreement with Price Point Promotions. In the deal, Price Point will provide the company with access to over 25,000 secondary retail outlets for sale of product acquired by SEL Exchange or generated by its end of life customers. The first sale has already been completed with Price Point selling seven truckloads of appliances for approximately $100,000.

"We continue to see significant traction and progress at our recently opened US based facility," said Vito Buffone, President and CEO of SEL Exchange, in a statement today. "With this distribution agreement in place we believe we are well on our way to achieving significant growth in our business," he added.

Further, SEL said that it entered into a consulting agreement with an unnamed party to provide consulting services on its marketing strategies. SEL is paying $30,000 in cash and $10,000 in shares at a deemed price of 10 cents per share for the services.

Shares of SEL are flat at 7 cents on Tuesday, keeping the company’s market capitalization at $3.98 million.

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