Company Overview
The Company is a leading manufacturer and distributor of music instruments and related equipment.
The Company sold a number of nationally recognized brand names.
Distribution channels include online, national big box chains and specialty retailers.
Engagement Overview
FDP was engaged to prepare a high-level assessment of the Company with regards to its product importing, manufacturing and distribution strategies, management personnel, business operations, information systems, financial condition and performance.
Based on our examination of the business, we recommended numerous operational and financial improvements to the business.
Additionally, we performed an overall SKU and customer rationalization analysis identifying a significant amount of slow-moving inventory.
FDP assisted the Company with moving this slow-moving inventory through other channels and providing additional liquidity that exceeded $1 million.
Our review identified other significant improvement opportunities, such as updating Bills of Material, detailed departmental forecasting, and inventory management.
Results
FDP identified a significant slow-moving inventory issue in excess of $1 million.
–FDP assisted with moving this inventory through other sales channels providing much needed liquidity to the Company.
FDP identified additional opportunities due to out-of-date costing of SKUs.