Optimise4

Optimise4 Helps a Trading Company - Consulting

Objective: A long established Company in the timber industry was in a catch 22 situation. The credit crunch was biting, demand for timber was down but the Company had stocks to clear. Cash flow was under intense pressure. Their dilemma was whether to close while they had cash to distribute or trade and hope things improve?

Activity: The Managing Director approached the Optimise4 Associate in a most traditional of settings; over a drink after a game at the golf club. They got on well, unaware of each others' line of business. Conversation turned to business and a few days later the worried MD visited the Optimise4 Associate at his home.

Services: Together they looked at the options. The Associate went through the Management Accounts and the Cash Flow forecast. He asked some questions and teased the solutions out of the MD. The MD knew his business and was the principal shareholder, but was not used to dealing with a downturn. All he saw was a declining pension pot. The Optimise4 associate saw an opportunity.

Outcome: The MD kept his nerve, trimmed the cost base, put salesmen on to a commission only basis for 6 months, and survived. He was smart enough to see he had a skills gap in his otherwise technically proficient Board. The Associate plugged that gap. The MD could not see the wood for the trees. All he wanted was a reassuring hand to guide him in through his reluctance to do what needed to be done.

Value: After 3 months of trading losses the Company made a small profit. The following month saw a further improvement which has continued. The cost cutting helped, as did price protection, bonded warehousing and smarter procurement. The Company has now diversified into moulded products and the pension pot is secure.