The Company is a designer and contract manufacturer of thermoset and thermoplastic assemblies.
The Company also manufacturers large-form fiberglass components for OEM customers in the tractor-trailer industry.
FDP was engaged to perform an operational assessment of the Company’s manufacturing facilities located in Pennsylvania, Washington and Oklahoma.
In addition, FDP would review the 13-Week Cash Flow and Financial Forecast model prepared by management.
Based on the operational assessment, FDP recommended numerous tactical adjustments to improve throughput and on-time delivery metrics.
Based on detailed vendor reviews, FDP recommended a priority to addressing vendor issues that included holds, cash-in-advance, and “ransom” payments.
–Supported by the 13-Week cash flow forecast, FDP aggressively managed cash to free up additional liquidity which allowed for more timely vendor payments. This freed up vendor logjams allowing materials to be delivered on a timely basis.
FDP reviewed SKU and customer profitability discovering significant losses with certain SKUs and customers. FDP, with management’s assistance, developed a pricing strategy to eliminate customer and SKU losses.
FDP’s recommendations improved cash flows, vendor stretch, and operational issues including poor on-time delivery.
FDP reversed SKU and customer losses through price increases.
Company returned to profitability after executing FDP’s operational turnaround plan.