Irish owned warehousing, distribution and logistics company that had five locations nationwide and brought with it all the problems of a third generation family business. Communication across departments was on a ‘need to know’ only basis and profits had plummeted over recent years.
Initial issues highlighted to Davis Business Consultants:
- Owner working in excess of 80 hours a week
- Staff were working against the company
- Highly inefficient
- Overdraft facility of €250,000 being used consistently
- Minimal communication between staff and management
Davis Business Consultants
- Implemented a meeting structure and reporting system
- Removed one family member and other problem staff from the business
- Introduced KPI (Key Performance Indicator) reporting
- Introduced budgets, targets and objectives
- Implemented credit control procedures and timely management reporting
Result
- Cashflow improved by €350,000 from new credit control procedures and overdraft facility was rarely used thereafter
- Profits increased by 27%
- Budgets and objectives were achieved and surpassed
- Communication and morale improved immensely
- Reduced owners time in the business from in excess of 80 hours per week over seven days to less than 50 hours per week over five days
According to the owner – “The difference is unbelievable”