The Company is a regional distribution company serving supermarkets and food processors with in-store plastic, paper and consumable products. The Company has six distribution facilities located in Texas, Louisiana, Illinois and California.
The Company grew rapidly, was undercapitalized, had antiquated information systems, and needed new management talent.
The Company had unreliable financial reporting and weak operational tracking statistics.
FDP was hired to perform an operational assessment and develop a profit improvement plan.
During Phase I, FDP prepared an assessment focused on recent operating performance and proposed an immediate action plan to address critical cash flow issues
Phase II involved the preparation of a monthly financial forecast, which indicated a capital need and an 18-to-24-month turnaround.
FDP developed an operating plan to improve profitability:
–Reduce operating expense over $2M,
–Reduce inventory levels by $5M,
–Ceased an ERP implementation – a two-year savings of over $2,000,000 - and instead upgraded the existing systems,
d gross margins by approximately $1M through better purchasing practices
–Sold non-core business operations, and
Subsequent to the development of the operating plan and forecast, FDP served as Interim CEO to provide leadership during the implementation phase and to assist the board of directors in monitoring its progress.
FDP materially improved the operating performance of the Company.
FDP negotiated the sale of unprofitable non-core business units.
FDP executed to the operating plan, including the recruitment of several senior management positions and hiring a permanent CEO to replace the FDP Interim CEO.
FDP improved the financial reporting and developed KPIs for daily and weekly review.