Wholesale Food Distribution
Oct 2010 to Sept 2013
The company was having cash flow and profitability issues and was out of covenants with the Bank. No meaningful business condition analysis or financials were being done. Alternate lenders could not be sourced as reviewed financials and collateral audit was being delayed.
MSNCFO instituted a rigorous discipline of financial reporting and clean up. Business analysis work was done to understand the financial status. A starburst of projects were identified to improve business health. Teams were set up to collect AR, improve Inventory and AP management, increase Sales and Gross margins. Robust routines and a coordinated team effort was set up to identify and solve problems in a participatory manner.
The company was restored to profitability over a twelve month period. Reviewed financials and a Bank collateral audit was done in half the time. Monthly financials were done to a quick routine. At weekly review meetings AR, AP, Inventory, Sales and Gross margins were monitored. A palpable level of anxiety was eliminated. Client commenced doing projections and cash flow forecasts to manage the company in a planned manner to harness its’ resources. The Bank renewed the line of credit under new terms and the company is getting stronger. Staff morale improved and a team spirit has been imbued.