A $200 million manufacturer of nutritional supplements and personal care products.
The Company faced a sluggish sales environment that had translated into reduced margins. Senior management decided to launch a major turnaround effort encompassing marketing, manufacturing operations and spend management.
Avant Advisory Group was engaged and quickly dispatched an Interim CFO to lead the financial transformation of the business.
After successfully driving multiple cash flow and profitability improvement initiatives, the Interim CFO found and transitioned a permanent successor within three months.
An example of a profitability improvement initiative was in the area of procurement. In a single month, our Enterprise Performance Improvement team identified cost reduction opportunities and worked with company staff to drive $500,000 of procurement savings in several areas:
- Duty Drawback: 90% refund of import duties paid on imported components and ingredients
- Uniforms: 67% reduction in annual uniform costs
- Small Package Delivery: 12% improvement in overall costs
- Pallets: 40% decrease in pallet costs
- Truck Freight: 11% reduction in less-than-truckload freight costs