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REDISTRIBUTE WEALTH
$130 million National Distribution Company
A major, national distributor with eight distribution centers and 30 sales/service locations had lost its cash flow through declines in gross margins. Left with virtually no availability under its bank line, the company turned to Buccino & Associates for turnaround consulting expertise. After reviewing customer pricing, product purchasing, warehouse operations, and inventory supervision, the Buccino team developed programs to evaluate and improve customer profitability, customer pricing structures and inventory management. With the implementation of new practices, the company saw nominal loss of sales, improved gross margins, higher inventory turns, lower inventory levels, and reduced warehouse costs. The distributor became a mover again, regaining profitability and creating adequate loan availability to maintain its financing relationship with its current bank.
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