Home » Problem Solved » Fractional CEO: Increased Revenue $8.2 Million and Improved Cash Flow Resulting in $9 Million Savings

Fractional CEO: Increased Revenue $8.2 Million and Improved Cash Flow Resulting in $9 Million Savings

Situation

A third-generation family-owned manufacturing company faced financial troubles due to bad hiring decisions and mismanagement. The company was about 45 to 60 days away from total insolvency and was supplementing their finances with their own personal bank accounts. Their key challenges included:

Overhead payroll expenses
Overstaffing in one department and understaffing in another
Over-processing of a product leading to $8-$9 Million in opportunity costs
Inefficient collection of accounts receivable

Actions

Reduction of payroll overhead by $274,000 (without any negative impact on the company)
Movement of two employees from an overstaffed department to an understaffed department resulting in a minimum of $23,000 per shift
Stopped over-processing of a product, leading to $1.2 million in additional revenue per quarter
Improved collection of accounts receivable

Results

Increased revenue by $6.4 million per year by moving two employees
Increased revenue by $1.8 million per year by stopping over-processing
Improved cash flow with almost $9 million in the bank, includingpayment of past-due accounts payable
Solved insolvency issues with efficient management of finances and operations

Conclusion

MetaExpert Carl’s engagement with the manufacturing company as a fractional CEO led to significant improvements in the company's financial and operational performance. The solutions implemented by Carl helped increase revenue, solve insolvency issues, and improve cash flow for the company.

$1.2 million in additional revenue per quarter from stopping over-processing.

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Address

Corporate Address:
10343 RS Avenue
Mattawan, MI 49071

Canadian Address:
168 Beaconsfield Blvd, Beaconsfield,
QC H9W 4A1

Mexico Address:
Circunvalación Sur 115A, Int. 6, Las Fuentes
Zapopan, Jalisco, Mexico, 45070

Support

734-425-1455

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