The company supplies a complete range of re-manufactured printer cartridges and laser tonne cartridges. The company sales its products through a nationwide chain of over 60 high streets shops and by on line shop 24/7. Most sales are retail sales (cash sales) but some of larger trade customers buy from central warehouse on credit terms (30 to 60 days) and get bulk discount based on value of their purchases each quarter. The company has been established in November 2003 in Birmingham by two of its three controlling shareholders: Paul Farnon (Managing Director 40% of shares) and Victoria Dawson (Sales Director 30% of shares). Anil Gupta (Finance Director 30% of shares) has joined the company in 2008. All members of the board directors come from printing manufacturing and selling background.
The re-manufactured cartridges are usually 20% cheaper than originals. The company aims to keep just enough inventories in each shop to be able to meet three days’ worth of normal sales and to be able to offer next day delivery service when the sale is through their on line shop. This is the company policy to minimize inventory holding costs by holding minimal stock levels. Every evening company collates its sales for the day and makes orders to suppliers. The suppliers deliver goods to the central warehouse two days after receiving an order. The Inkwell then sends the cartridges by post to its stores. Over the past 7 years the company has grown and has revenue of £16 million and employs 180 full time employees.
Paul Farnon (Managing Director 40% of shares)
Victoria Dawson (Sales Director 30% of shares): advises market price of any cartridge then takes off required profit margin to get price the cartridge needs to be manufactured for. Anil Gupta – Finance Director: responsible for finance, legal and accounting procedures and systems, production of annual company report, statutory accounts, banking and finance issues. Michael O’Payne ACCA – Company Accountant (low lower tension between him and Anil since Anil appointment to Finance Director): responsible for running Accounts Department, producing monthly management accounts, approves all payments to suppliers, managing work of accounting technicians (general ledger, purchase ledger, sales ledger, costing system, payroll and personnel database management system). Alex Fox – Accounting Technician AAT student: responsible for revision of company systems and procedures, accounting duties given by Michael or Anil. Michelle Labelle No Qualification - General Ledger and Inventory Clerk: responsible for entering data into general ledger, end of month trial balance, cash book and petty cash imprest system, keeping financial control over company’s inventories, reviewing stock levels in shops by e-mail, monitoring orders to suppliers, checking with shops why they have got more than three days stock. Liana Khan AAT level 2 wants to do AAT 3 – Purchase Ledger Clerk (20hours a week): entering supplier’s invoices and credit notes into purchase ledger, arranging payments to suppliers. One year experience in Sales Ledger. Married to Michael’s son. Greg Morris no Qualification – Sales Ledger Clerk (20 hours a week): inputting data into sales ledger, credit control, sending monthly statements to trade customers, working out their quarterly discounts. Alan Cook – Costing Technician(very experienced in sales/purchase ledger/costing don’t want to undertake any training because of his age): works out what cost of each cartridge component should be, supplies management with the information on which to negotiate with suppliers, monitoring costs and profitability of each cartridge on monthly basis and advises management of variances from target. Sharon Ward AAT level 2 and wants to do level 3 no experience in computerised payroll needs training on software – Payroll and Personnel Database Clerk: running two payrolls (monthly for management and salaried staff and weekly for hourly paid...