MANUFACTURING
Case Study: Success Stories from the Manufacturing Sector
Our client was a mid-sized manufacturing company that had been in business for over 20 years. They had experienced steady growth but faced some financial challenges due to increased competition and rising costs. The client had a small finance team struggling to keep up with the demands of the business.
The client hired Westport Business Management to help them restructure their liabilities, manage costs, and improve gross margins. Our CFO provided real-time financial data so the client could make informed decisions about their cash flow.
In addition to helping the client with cash flow management and forecasting, the fractional CFO on our team also helped improve their gross margins by creating a more efficient production process. The manufacturing company increased sales while decreasing costs due to this restructuring.
Client
Background
Challenges
The manufacturing industry is notorious for its complex financial challenges. Developing alternate and substitute vendors is now commonplace where companies once relied on a sole producer.
When dealing with a business that relies on multiple parties to complete the supply chain, it can be difficult to manage your finances and ensure that your company operates efficiently. Balancing customer demands, internal margin goals, and front-line staff is challenging without great financial analysis and planning (FP&A).
Our client was heavily involved with importing finished goods and raw materials to reduce costs associated with domestic manufacturing. However, external factors from COVID that impacted supply chain timeliness and inventory levels rippled their lead times. Without a forecasting and planning system, the company purchased goods based on hunches, not data.
The client was facing several challenges, including:
Limited financial visibility and control
Inefficient financial processes
Inadequate financial reporting
Cash flow issues
Difficulty in accessing capital
Poor inventory planning
Solution
The manufacturing industry is notorious for its complex financial challenges. Developing alternate and substitute vendors is now commonplace where companies once relied on a sole producer.
When dealing with a business that relies on multiple parties to complete the supply chain, it can be difficult to manage your finances and ensure that your company operates efficiently. Balancing customer demands, internal margin goals, and front-line staff is challenging without great financial analysis and planning (FP&A).
Our client was heavily involved with importing finished goods and raw materials to reduce costs associated with domestic manufacturing. However, external factors from COVID that impacted supply chain timeliness and inventory levels rippled their lead times. Without a forecasting and planning system, the company purchased goods based on hunches, not data.
The client was facing several challenges, including:
Limited financial visibility and control
Inefficient financial processes
Inadequate financial reporting
Cash flow issues
Difficulty in accessing capital
Poor inventory planning
Results
Our solutions helped the client achieve the following results:
Improved inventory valuation accuracy by 15%
Reduced month-end closing time from 30 days to 7 days
Better cash flow management: The client has a cash flow management plan, which has helped them address their issues—a nearly 3X increase in liquid assets.
Implemented a real-time financial management system that enabled financial visibility and control
Increased efficiency: The client's financial processes are now streamlined, which has resulted in cost savings and improved accuracy.
Access to capital: The client has secured additional financing, which has provided them with the capital they need to grow their business.