Financial Controls…Peace of Mind
A long time established 2nd generation manufacturer had experienced sales decline and eroding margins over the past decade. The primary challenge was in the area of pricing structure and cost controls, with remediation also necessary in the areas of strategic planning, sales and marketing, and to some degree, organizational development pursuant to the objectives of a strategic plan and effective analysis of business development initiatives.
Brighton Windsor Group assessed the impact of pricing, product, promotions and distribution. We assessed the return on investments by product line as well as from a business impact and brand perception perspective, thus eliminating non-profitable lines from production. Annual inventory counts were changed to a quarterly basis and obsolete finished goods were scrapped or sold at a discount to generate incremental cash. In addition, we assisted ownership in developing financial forecasting tools as well as budgetary controls and variance reporting system.
The financial controls are utilized in all divisions which helps foster an environment of accountability, promotes proactive decision making and ensures that all management is focused on sustainable growth and profit. The product line responsible for $275,000 in annual losses was discontinued. In today’s challenging and competitive manufacturing environment, Brighton Windsor Group is continuing to work with our client to launch an employee performance incentive program, refine the product line and pricing structure and apply them to their business on a real-time basis.