We were called into a Southern based Print Supplies distributor. The company had been losing market share to the point that it was terrified of upsetting its customers and in fear of losing even more market share.
As a consequence of this, Sales had reduced by 20% to £5m per annum, they were overstocked and their Debtors were extending their terms of payment way beyond what was acceptable. The company looked to be heading for real trouble.
We identified the slow moving stock and looked at ways of negotiating credits back from suppliers. The stock that could not be returned was used to develop a new and exciting sales campaign, thereby offering existing customer’s savings on old stock. Sales personnel were given specific tasks to visit existing and new customers, thereby adding to the customer base and re-growing the business.
At the same time, we managed the credit control department, making collections processes more robust, setting credit limits and imposing collection targets. We negotiated payment plans with overdue customers and got the business back on track, profitable and secure.
In 10 weeks we moved £600k from Stock and Debtors into Cash. We increased the customer base by over 10% and the company moved forward on a secure base, well financed, looking at new markets and opportunities.