Bringing structure to inventory and purchasing

Challenge: A client needed better consistency and visibility around purchasing and inventory systems.

Our Solution: We evaluated the daily workflows and procedures of the purchasing department as well as the inventory levels and related sales levels by SKU. We suggested and helped implement an MRP system with min and max levels based on actual sales data. We designed a new schedule for placing PO's and stock rotations with suppliers.

Result: The client has a more structured buying pattern that allows them to maintain adequate inventory to support sales and to do so with half the PO volume they previously had.

Acquiring a new venture doesn’t mean you have to do it alone

Challenge: A client was considering buying an existing operation but needed financial expertise to assist them in the process.

Our Solution: We obtained and reviewed financial statements and tax returns for the prior five-year and year-to-date periods, performed inquiries of seller and completed a Quality of Earnings assessment. Also, provided a three-year forecast and business plan for acquisition. We assisted in securing financials for the acquisition by communicating with several banks and the Small Business Administration (SBA).

Result: Buyer received the needed financial expertise and support needed to finance and approach negotiations on the transaction.

Making the ERP work for the business

Challenge: A client upgraded to a new ERP system and lost their ability to pull data to run monthly reports. As a result, they prepared spreadsheets and relied on manual processes to obtain the data they needed.

Our Solution: We evaluated workflows, reporting and ERP configuration. We wrote reports using the existing system to provide the client with the data they needed without manual tracking or workarounds.

Result: Easier access to data provided the client with more reliable reporting without the need for manual workarounds.

Data is only as valuable as its accuracy

Challenge: Company wanted to reevaluate the way sales team earned commission. They currently base all commission off revenue because there are no reports in place to track margins. 

Our solution: We assessed the existing commission structure to ensure the proposed pay change would not create unintended consequences for the sales team or morale. We created a payout structure that encouraged higher margin sales with a tiered percentage payout based on margin dollars, rather than revenue. Then we developed a customer report that would automatically calculate the commission amounts each month. 

Result: Better visibility over margin dollars per sales rep. Increased margin over a 1 year period. Much smoother commission calculation process for payroll. 

Monthly financials: the gateway to better decisions

Challenge: A client did not close their books monthly. They only so once a year for tax and bank purposes. As a result, ownership and management were making decisions based on gut feel and speculation without truly knowing how the company was performing.

Our solution: We developed a process so that monthly financials were prepared each month and were completed within 10 business days. A summary write up was also prepared for leadership each month.

Result: The company can now make decisions backed by timely financials and a better understanding of how those decisions will affect the bottom line.