Profit Improvement and Risk. What other companies are doing to correct their processes and improve profitability.

Client One always over purchased inventory to allow for “hopeful” sales growth and then had to discount and/or write off unsold merchandise. This created unwanted cash flow and credit line issues each year during the peak season. By using their data to scientifically optimize the inventory level, they were able to significantly reduce inventory and improve profitability and cash flow during the next sales cycle. This is why it’s important to measure the right process and implement the right solution to achieve the right result. Few imagined that purchasing less inventory, but the right inventory would improve profitability and cash flow!

 Another client often overlooked area is measuring risks associated with the business. Since having the right processes are keys to profitability, then measuring the right risks are elements of the process. Why measure risk?  It’s simple!  If we can measure it we can manage it. If we can manage it, we can turn risk into profit by optimizing our relative position.  You will learn the 3 most significant risk areas, and then explore one in more detail, examining actual components from an actual client, and seeing the risk level, weighting, values and comparisons.  Learn how to identify your risks and why that leads to improving your results.  We’ll also share insight about defects, and market share – how to use underutilized people, capacity and leverage special skills to grow your business.