Evaluated options for underperforming business unit
Situation:
A leading provider of consumer automotive aftermarket products engaged Kormac to analyze an underperforming business unit. Contributing only 3% of company revenue, the unit lacked leadership and oversight.
Actions:
- Analyzed all profitability and performance dimensions: revenue, margin, cost, operating metrics, market conditions, vendors, customers, and more
- Developed precise, item-specific strategies to improve inventory turns and reduce net inventory costs based on sales and usage volume and volatility, as well as broader strategies by business unit, item class, geography, etc.
- Delivered data-driven recommendations to balance inventory costs, turns, and service levels
Results: Within weeks, we provided a clear picture of the neglected unit’s drivers, inefficiencies, benchmarks, and opportunities. Our “deep dive” gave the company’s CEO, CFO, and Board members the actionable intelligence required to move forward with confidence.
