Standardizing the Sales Process for Profitability.
Logistics company
Problem
Company financials suggested profitable operations, but cash reserves were rapidly draining. Additionally, the company’s warehouse was brimming with unmarked inventory, and the staff spent hours each day looking for customer items.
Solution
Compass started from scratch and built a cash-based income statement to reveal true financial performance. Then, working with management, we developed a strategy to rapidly increase cash flows. This included an appropriate price increase (the first in ten years), changing A/R collection processes, and letting go of unprofitable customers. In addition, the Compass team put on their jeans and T-shirts to work in the warehouse for several days to identify what was amiss.
Outcomes
The company returned to profitability and cash flow reserves were replenished. In addition, the Compass team identified the causal factors leading to the warehouse chaos. Alongside ownership, we instituted new policies that enabled the warehouse team to document and record the location of all the inventory in the warehouse, clear the floor of backed-up inventory, and improve customer satisfaction.
Developed a highly customer-centric focus to their business
Shifted business model to better support technicians, resulting in higher end-customer satisfaction
Built custom software to make the flow of information easier and more efficient