It is not uncommon for companies to expand their product mix far beyond the single or small group of related products or services initially offered. As they expand and succeed in profiting from these additional lines, the market conditions over time will change, affecting profitability and eventually the feasibility of retaining some products or services.
A thorough whole-picture perspective, objectively evaluating all aspects of a company offering will likely uncover flaws and/or gaps in such things as:
- product sourcing
- packaging
- handling
- inventory
- customer service and
- the company’s overall marketing strategy
Data about critical issues such as:
- competition
- pricing
- overhead
- through-put and
- transportation costs
all affect being able to maintain a realistic per-unit margin.
Thorough and creative Relational Analyses often result in recommended changes that improve product margins and the bottom line.
A company we helped (with a similar problem as this owner), had a profitable business for 20 years importing two separate components of an almost ubiquitous restaurant table item. He had a production line of 5 people who essentially screwed the two components together, put them into a box of dozens and shipped them out. Transportation, production and inventory costs, etc. increased as profit margins declined.
After our analysis was completed, the solution we proposed to mitigate the problems was simple:
- First, identify the exact weight of one dozen of the smaller component.
- Then instead of assembling the two parts, put a dozen of the larger component in the box, and drop an exact weighted shovel full of the other part into the box, close it and ship it.
That change alone reduced:
- The overhead by 2 people;
- the amount of production space by half;
- and increased productivity and through-put three fold.
That client’s business still supplies most restaurants with these items today, and is again a very profitable business.
How we work for you:
We meet initially with you and welcome the inclusion of your financial and/or legal advisor and in complete confidentiality identify the critical situations you face.
Upon engagement we perform a Business MRI™ resulting in a thorough analysis and a well structured Roadmap to Success that includes performance mileposts and directs your company toward achievable goals.
We provide a Team Leader who can be engaged as interim management or consultant to The Company while the programs and practices described in the Roadmap to Success are put into effect.
Both ways we can help you achieve cost effective, positive and timely results for your Company, its investors and creditors.
We solve your problems while striving to satisfy all parties at the corporate table.
Take Action! Tell us: What is your need or most pressing problem?
