Insights
- The company is a marketing exporter of quality consumer goods
- The outlets for its goods include big box, eCommerce and redistributors in Asia
- Management was making “knee-jerk” decisions to begin new business ventures without appropriate consideration and vetting
- Business processes were lacking and inventories were growing
- Cash flows were not being properly managed and profitability issues were emerging
Action
- Two Newport partners met with the CEO and management team to better assess challenges and define the desired results
- The root causes of many of the existing challenges were identified and defined
- Long and mid-range goals were developed, along with implementation strategies and specific action plans to achieve those goals
- Disciplines were structured to ensure consistent implementation and enable more effective execution management
- Ownership and accountability processes for monitoring results were implemented
Results
- Stabilized cash flows, loan compliance and banking relationships
- Improved gross and operating profitability
- Achieved a 30% inventory reduction and improved turns
- Developed a standardized methodology for addressing new markets
- Internalized all accounting and reporting functions
- Attained the management team’s consensus regarding the company’s strategic direction
- Optimized business processes and human capital allocation
- Created a culture of performance and accountability throughout the organization
