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Working Capital Management

Working Capital ManagementWhether you are growing by leaps and bounds or going through a  rough patch, cash flow is the lifeblood of your organization.

Sutker Advisors can elevate your working capital management capabilities by getting the facts and implementing proven strategies through:

  • Developing detailed weekly cash projections
  • Monitoring your Days Sales Outstanding for Cash Collections/Accounts Receivable
  • Tracking Inventory Turnover for inventory management
  • Scrutinizing Days Payable Outstanding for Vendor Management/Accounts Payable

Case Study: Too Many Products Cause Sizeable Loss

$12 million framed picture manufacturer

Overview

A third generation, family-owned $12 million framed picture manufacturer was losing money. For many years, these losses were buried within the overvaluation of obsolete inventory. Burdened with a large overhead structure, the company sold “all things to all people.” The excessive product lines and sizeable customer base created inefficiencies within the plant and confusion within the marketplace.

Solution

We analyzed each category within each product line, and each product within each category, and recommended a 40% reduction in SKUs. Selective price increases were implemented for the remaining products. In addition, we scrutinized each non-direct labor position, resulting in over $400,000 of savings from job eliminations. Finally, by narrowing the product base and instituting an inventory reduction program, the space required to support the operations was reduced, allowing for one of the three operating facilities to be sold.

Want to learn how Sutker Advisors can help improve your profitability?