Costco Wholesale Corporation And Financial Data

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Introduction: Costco Wholesale is an American based warehouse membership club which provides wide varieties of products and services to its consumers. The organization was founded around 40 years ago on July 12, 1976, under the name Price Club in San Diageo at California, USA. The firm was founded by two Americans, James Sinegal, and Jeffrey Brotman. The company is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority-owned subsidiaries in Taiwan and Korea. Now moving towards to the financial situation of the Costco, it has been seen that from the …show more content…

Insurance services include Costco personal health insurance program, mortgage, and refinancing service, business health and dental product, online investing service. The business services include the web and on-line solutions, Electronic Healthcare Records, payroll services and Practice Management services. Supply Chain Management at Costco: The aim of the Costco is to sell products in a large volume to the customer at a competent rate as compare to other retail stores. The company usually believes in keeping very less variety of products at the warehouse because that leads to sell the current product at a higher volume that is why supply chain of Costco is generally yielded the strong result.

• Purchasing and Material Handling
As the price of the products is comparatively low, that will increase the purchasing power of the customer and they will buy in larger quantity and thus the company gains the profit. (Soni, P. (2016))

• Buying products directly from the manufacturer.
Other positive points of the Costco supply chain is that the company buys merchandise directly from the company and supplies it to their depots. They mainly supply the products through the Logistics that take less time to distribute, and reduce their total distribution costs. Moreover, the company tries to buy the products from the local retailers so as to maintain the relationship with them. (Soni, P. (2016))

• Working Capital Management.
As Costco is biggest

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