SUCCESS STORY

Wholesale & Retail

Leading company specialized in the wholesale and retail of high quality bearings brands.

Customer Needs

Despite a good level of sales and market share, the company faced cash flow problems and high bank liabilities.

There were indicators that showed the trend of a deterioration of the regional economy and the owners had concern for the future of the company and needed strategies to ensure the profitability of the business.

Strategic and Tactical Approach

Alliavant tailored a profit improvement program based on the detailed analysis of the financial statements, organizational structure, sales strategies, distribution channels, expense level, inventories, accounts receivable and debts.

• Established a financial culture with an effective cash flow management
• Defined new terms of credit to sales and a stricter control of accounts receivable
• Applied rigorous control of expenses with well-defined priorities
• Developed a plan to improve inventory turnover
• Implemented performance and profitability indicators for each branch
• Created a monitoring program for sales force performance
• Restructured the client portfolio to serve a more diversified market
• Established strong relationships with the suppliers and clients
• Revised pricing strategies.

Outcome

With the implementation of a comprehensive road map, the results achieved significantly impacted the company’s top and bottom line.

• 22% reduction in operating cost
• 18% increase in sales
• 23% increase in client portfolio
• Two low performing branches affected by the market conditions were closed
• 27% increase in revenues
• 35% increase in net income after one year.