FMCG manufacturing company in Africa with multi country presence
30%+ Increase in Bottom-line achieved through Business Transformation:
Our recommendations included:
• Significant saving in Interest on overdraft by discovering unnoticed idle funds and introducing a new format for daily fund management.
• Major flaw in dealer’s invoicing mechanism caught and rectified resulting in a substantial cut in discounts erroneously given to them earlier as gratuitous. An amended format of Invoicing was proposed.
• Pointed faulty procurement planning causing piling of inventory thereby spiraling effect on working capital /OD interest cost, bad inventory & undue pressure on cash flows. Alternative method proposed.
• Product Group & SKU wise analysis revealed many issues with regard to, less focus on the sale of high margin products, negative margins in many products, etc. Specific action points proposed.