The Company is a multi-plant blow molding manufacturer of consumer and industrial sprayers for home, lawn & garden, public health and pest control applications. The Company’s revenues are $70 million with domestic and international manufacturing facilities.
The Company retained Fort Dearborn to develop an operating plan and identify and implement profit improvement initiatives.
With Fort Dearborn’s assistance, the Company successfully:
–Consolidated from three plants to two facilities prior to its seasonal uptick;
–Reduced the SG&A expenses by $500,000 through a reduction in force, changing public accounting firms and health care expense adjustments; and
–Implemented price increases on certain parts and customers based on customer profitability analyses prepared by FDP and management.
These initiatives generated over $3 million in annual profit improvements and returned the Company to profitability.
Additionally, based on FDP’s inventory movement analyses, management implemented several actions to reduce inventory during the seasonal peak by over $4,000,000 and permanently by $2.5 million. This reduction created significant availability on its borrowing base during its seasonal peak.
Consolidated from three plants to two plants resulting in annual savings of approximately $1.5 million.
Reduced inventory by several million dollars by improving forecasting sales by customer by SKU, resulting in better manufacturing throughput and focus on selling slow moving parts.
Recommended the hiring of a global supply chain manager
Identified and recommended targeted price increases on certain customers based on profitability analyses.