Our client is a major supplier of building supplies. Originally operating as an importer and wholesaler, they commenced manufacturing their own products.
The company had 25-years of growth, which stalled in 2016-17
Our client required financial service to assess stock management, logistics, funding, cash management, reporting, and risk management.
Strategic Specialists Group placed an experienced CFO with manufacturing experience in the business to oversee the transition to enterprise reporting in the business. The CFO was engaged intensively for 3-months to introduce new systems, reporting and to upskill the existing team. Engagement continued for 3-months to ensure complexity of requirements across the SBUs was simplified and then a further 3-months for advisory service and team mentoring.
A rapid financial assessment of the entire business was undertaken by the CFO. The purpose was to quickly understand the overall financial position and to identity key financial priorities for rectification.
Key issues defined for immediate attention included:
Improving stock turn rates and working capital required developing wholistic business recommendations rather than a focus on simply reducing stock levels. An inventory management approach aligned finance, operations, marketing, sales, and customer experience. Managing stock lines ensured maintaining minimum product quantities and with consideration to lag-times for manufacturing, freight, and distribution. Consultation with marketing ensured campaign development for demand generation, leads management, and sales pipeline management.
For other key identified financial priorities the process entailed analysis of data, systems and process, reviews of people and capabilities and development of recommendations to deliver improvements to cashflow, financial reporting and risk management.
Key results for the business included:
Engagement continues with the focus on preparing the business to scale.