Case Studies

Inventory sales management

In the Hot Box
Distribution businesses are often forced by manufactures to expand service levels and territorial coverage. At the same time, competitors are fighting for products and territories. While the sales increase is always intriguing, the cost.. Read more

 

Clean Up Your Room
Strengthening Distributor Relationships

Idea generation

After an extensive law suit, the owner of a graphic production company finally settled a dispute with his former President who claimed to have an ownership stake as well. As an absentee owner, he did not want to come back in and run his company on a daily basis, so he appointed his CFO as the new President. But the house was not in order after all the turmoil at the top. It was time to get the house in order.

Unfortunately, the market conditions for success were not optimal. The majority of their business was related to trade shows and trade show attendance was down significantly. Growth of new trade show graphics was down and the dealers across the country were struggling to survive. It had gotten to the point where the top five dealers had considered switching to the largest competitors.

The new President had been with the company for a long time but had not been involved in the leadership of the company or strategy development. While establishing a sound strategy was important, preventing a dealer mutiny was the first order of business. We invited all the dealers to a joint meeting and shared information with them, including financial, that allowed them to see the company was healthy but suffering just as they were. We established a dealer council and set up regular meetings both on site and remotely to keep them informed of all the changes that were being worked on to ensure their long term health.

At the same time, we worked with the President to establish an internal leadership forum which allowed the best people from each discipline to express their ideas and held strategy meetings jointly with the leadership and the dealer council. One of the critical ideas that came out of these meetings was to develop a product line that was more economical for customers but with a quality that had not been seen at lower price points. Additionally, a service component was introduced that provided a new revenue stream for the company as well as the dealers.

As the economy picked up and attendance of trade shows increased, the company was well positioned to grow profitably.