| Organization
-- $75 million privately held industrial
products manufacturer located in Southern
California.
Situation/Challenge
-- Company sales mix was driven by their
OEM customer base. Business had a high
product cost structure. Sales revenue
was stalled; inventory levels were rising
and on-time shipping performance was below
market expectations. Management wanted
to grow the business above the $100 million
mark, while increasing product margins
and increasing cash flow.
Results:
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•
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A
"pull marketing strategy"
grew the business at a compound growth
rate of 10% |
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•
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Pricing
strategies raised gross margins by
3 percentage points |
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•
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Company
achieved category brand leadership
through innovative new products |
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•
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Rebalanced
and reduced finished goods inventory
by $1 million |
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Generated
$3 million in cash flow through accelerated
inventory turns |
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On-time
shipments and fill rates increased
to 95%+ |
Solution
-- A comprehensive, systematic approach
was utilized to create the results management
sought. Elements of the approach included:
Strategy
- existing intellectual property used
to support the value proposition
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•
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Alignment
- collaboration between Marketing,
Manufacturing and IT |
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Development
- formalized process introduced to
evaluate opportunities |
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Positioning
- market research uncovered key customer
needs and motivations |
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Execution
- Sales force had in depth understanding
of customers' objectives |
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