Company turnaround: Trident Alloys £50m t/over.
This assignment was executed by our associate Company ‘Aldridge Vale Associates’
A turnaround manager was provided to assist in the sale of “the company” owned by Venture Capitalists consisting of 3 divisions.
The problem
Stock was being lost at the rate of £100k per month. The belief was it was being stolen because the losses were so big the sale was unlikely to go ahead.
How was the problem tackled
Review all stock operational processes, from point of order to point of sale.
Within two months the problem had been resolved.
The solution
A new system of control and monitoring.
There was no pilfering of stock. The processes had become so lax that stock was being used and it was not being correctly monitored.
The benefits
Stock losses reduced from £100k month to £4k month (operational wastage generally accepted within the industry)
New controls and systems put in place for correct monitoringGross margins increased by 5%.
Poor reporting meant stock losses caused inefficient use of stock in production. As soon as new systems were implemented the inefficient manufacturing processes were easier to see and therefore improve.Reduction in working capital 10%. Improved control on stock and manufacturing efficiencies/usage of material meant lower stocks and shorter ordering times.
The sale went ahead as planned
Great Grant funding news for Merseyside SME Business : at 40 – 60%
Good news in the Knowledge Economy
Business Management Solutions from Proofsouth
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