To meet the challenges of the global marketplace, wholesalers and distributors need to lower inventories, enhance customer value and manage processes more efficiently to succeed.
Management needs timely, accurate and relevant financial information to monitor operations and know how increases in fixed and variable costs – such as warehousing, fulfillment, labor and transportation – will impact profit margins.
Your management reports must provide information on the cost to manage and move inventory to your customer. This includes dock-to-stock time, order cycle time, orders per hour, order fill rate, on-time delivery rate, inventory turnover rate and dollar volume of shipments.
A strong financial position is necessary to secure the outside financing for growth or a line of credit when cash flow tightens. Your profitability depends on efficient and cost-effective procurement, fulfillment and warehousing processes.
Your CPA or financial adviser can provide information about any of the following continuous improvement programs and process enhancements, as well as assistance with tax planning, budgeting, business plans, internal controls and strategic planning.
- Activity-based costing and management
- Break-even analysis
- Budgets and sales forecasts
- Business performance management
- Cash-flow analysis and management
- Cost-based accounting systems
- Cost containment and management systems
- Fixed and variable overhead analysis
- Operational/process/productivity reviews
- Overhead containment
- Performance measurements
- Profitability enhancement strategies