Case Studies
We think real life examples of our advice in action tell a stronger story than any we could tell ourselves, so here are some of our recent solutions to our clients’ challenges across a range of market sectors.
Click on a Case Study to see the solution.
Case Studies
A US manufacturing plant had no accurate information on what was in production, what stage it was at and what was the value of the stock and work in progress
Business : Golf ball manufacturer (manufacturing)
Solution:
After a thorough review we implemented a perpetual stock taking system. We also identified a number of internal control weaknesses which allowed theft of finished stock to occur with limited chance of detection.
Result:
We improved management information and service to the distribution centres
Falling profitability.
Dentistry (service)
Solution:
Identified numerous opportunities to increase profit margins by (1) raising the sales price of the standard service, (2) upselling to a premium service and (3) promoting complimentary products
Result:
Within 2 years the sales price of the standard service increased by 200% and the overall gross profit margin increased by 25%.
Business Review nets 10% cost saving and results in tax savings
Web Design Agency (service)
Solution:
We conducted a business review amended the VAT scheme, gave up to date advice on what was claimable and how, reviewed pricing and recommended increases and introduced cross selling and premium prices products/services. Incentivised sales staff on profitability rather than sales value. Conducted a review of costs and recommended where to eliminate waste or unnecessary spending.
Result:
Management and staff more motivated as a result of increased profitability and increased salary earning potential. Cost reductions of 10%. Tax savings made. Admin overhead reduced and general productivity in the business increased. Profitability increased by over 20%.
An inefficient sales returns handling process
Business Import & Wholesale of telephones (consumer products)
Solution:
We redesigned the process and cut out waste
Result:
Within 6 months stock levels had fallen by £1.5m (or 25% stock) and £100,000 worth of cost had been saved each year
Company didn’t know the profit made on any customer or product
Import & Wholesale of telephones (consumer products)
Solution:
Calculated the profit made from all key products and customers and identified those which were either loss making or making very little profit.
Result:
Increased profit margins by negotiating better terms for certain cutomers and suppliers. Cut stock by streamlining product range (cut stock of non core products).
Disappointed with the profit made for the long hours
Business : Catering (service)
Solution:
We identified improvements throughout the sales and service delivery process which would both save time and increase the average sales value
Result:
Reduced the time spent throughout the process by 25%
Falling gross profit margins due to switch by customers from regular repairs to one off emergency call out
Engineering Repair (service)
Solution:
Despite the disruptive nature of a call out the price difference between a call out and regular repair wasn’t big. The price of a call out was doubled immediately.
Result:
Gross profit margins increased
How to finance growth. Is it better to invoice factor or to take out a bank loan ?
Toner Cartridge Recycling (manufacturing)
Solution:
We prepared profit and cashflow forecasts under both scenarios
Result:
It became clear that the management’s preferred route of a bank loan was not the best option.
Profitability falling due to increasing number of customers sending high margin business to competitors leaving us with the low margin or loss making business
Replacement car hire provision (service business)
Solution:
We changed the commission structure for customers and ensured it was cost neutral
Result:
New commission structure designed and implemented within two weeks and the higher margin business returned as did company profitability
Sales invoicing process inefficient & very high % of sales prices which were wrong
Importer & Wholesaler of telephones (consumer products)
Solution:
We redesigned the process and reconfigured the IT system
Result:
Almost immediately virtually no sales price errors were made. The customer service team was halved saving £25,000 a year.
Sales team weren’t winning enough new business due to cut price proposals from competitors
Replacement car hire provision (service business)
Solution:
We worked with the sales team to structure and present proposals in a better light in order to win the business but not at the expense of reduced margins
Result:
Won four major accounts in the first year worth £2m in sales on budget margins
The business had a complete lack of reliable and timely information in order to (1) know how the business was performing and (2) make sound decisions
Replacement car hire provision (service business)
Solution:
We implemented key performance indicator (KPI), sales and profitability reports
Result:
We identified issues such as falling profitability allowing corrective action to be taken almost immediately.
The original tenders for recycling contracts gave little incentive for the customer to deliver the ‘promised’ volumes and the business carried all the financial risk if the volumes were low.
Recycling (service)
Solution:
We amended the tenders and inserted tiered pricing and volume rebates to incentivise higher sales volumes whilst leaving the business exposed to little financial risk if the volumes didn’t materialise.
Result:
Contracts were won without the business having unnecessary worry about the consequences
UK company was making a £500,000 loss on sales returns but didn’t know why
Wholesaler of sports goods (consumer products)
Solution:
We reviewed the sales returns process and identified improvements, including replacing goods rather than issuing credit notes wherever possible
Result:
The loss on sales returns was reduced and profitability increased
Wanted to cut marketing spend but unsure on which bit
Dentistry (service)
Solution:
We identified certain areas of marketing spend which was generating a poor return, These were cut immediately. A system of tracking the effectiveness of each category of marketing was implemented.
Result:
Marketing budget been cut by 75% in 2 years during which time both sales and gross profit margins have increased
Was it more profitable to have a non returns policy with key customers in exchange for a lower selling price ?
Importer & Wholesaler of telephones (consumer products)
Solution:
Due to the type and volume of product being returned it was calculated that we could reduce the sales price by up to 7% and the business would be more profitable
Result:
There was a 5% price increase negotiated with the customer. Further time savings were made in both the warehouse and admin depts as they were processing fewer transactions.
Was it more profitable to service low margin business via own fleet of cars or to outsource ?
Replacement car hire provision (service business)
Solution:
In most circumstances it was more profitable to outsource. Stopped buying cars & negotiated better rates (for larger volumes) from supplier.
Result:
Increased outsourcing generated annual cost savings of £25,000 a year
Worsening cashflow, mainly due to levels of stock and staff being too high
Business : Toner Cartridge Recycling (manufacturing)
Solution:
We reduced both stock (by reducing non core product stock and changing service offering to customers) and overhead costs.
Result
We reduced the workforce by a third with the intention to cut premises costs by 50%. The target is to reduce stock by 50% over 6 months.
