Case – Tea CompanyBusiness Services
For one leading pharmaceutical laboratory, success and double-digit sales growth came with a cost: an overburdened supply chain that threatened to reduce market share.
The effort vastly improved the company’s planning and execution functions, they knew that in order to succeed in this era of technology their accounting systems needed to be much more robust than what they are. They turned to WP consulting to improve their accounting systems.
challenge
The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.:
- Improve sales and operations and production planning:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Determine the right inventory level:
With hundreds of medications in the market, Pharm Ltd. needed a proper method to predict and manage their inventory. Using a mean absolute percentage analysis (MAPE), the teams defined appropriate levels for raw materials and finished products by mapping actual versus forecasted sales on the most important SKUs.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
solution
The solution WP consulting came up with combined cutting edge technology with real world practicality. Everyone knew that the systems had to be updated, the real challenge was updating them without disrupting the whole organization in a negative way. The solution was to introduce proper workload management done through computers, while providing mobile platforms to the stakeholders.
This allowed the workers to be involved in the job instead of feeling like they had been made redundant by technology.
results
Arguzo employees are now more empowered; Arguzo also has the benefit of generating reports instantaneously whenever needed. They can now make decisions on the fly based on the latest real time data.
The effort vastly improved the company’s planning and execution functions, created and implemented a new stock policy that accounted for specific SKUs and key variables, streamlined the order preparation process and reduced distribution transport times.
By the numbers, the effort:
- Reduced lead time by 43%
- Decreased variability by 50%
- Lowered the risk of back-order by 95%
- Increased stock for finished goods by 10%
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In order for any business to really succeed they need to have the right Planning, the right Strategy, the right Roadmap and the right execution of these things. OGAdvisors helps our clients expand and grow by providing them all four. We know how important it is to have the right plan, if your plan is wrong then every step you take will be in the wrong direction as well. This moves companies away from their objective instead of towards it. We study our clients deeply before suggesting any plan, because we have to ensure that we have all the variables in check.
Once we have a plan, we work with our clients on creating a Business Strategy and Roadmap. Many people think strategy and plan are the same but OGAdvisors knows better. We know that plan is what we try to achieve and strategy is how we are going to achieve it.
OGAdvizors – We help companies assess their current and future growth potential. If we see the potential for ‘Exponential Growth’ then we approach them with the idea of working with us otherwise we move on to the next prospect.
Current Year Overview - $1.1M
Current High Level Business Overview
First, we do a preliminary assessment of the current business by interviewing the owner. We ask about significant factors in regards to the business. That normally leads to mostly revenue streams. Below is the owners list:
- Store: Atl(2000sf), Sell: Leaf tea, Drinks, Pastries, Hard/soft goods;65%
- Ecommerce: All items; 15% sales
- Mobile: 1 Cart (2x4x6 display) with 18 teas
Farmers/flea markets; Corp setting; Special events
(avg $950 event); 10% sales - Wholesale: 4 Coffee Shops; 3 Specialty; 8 Restaurants; 5 Other; 10% of sales
- Warehouse: (1000sf); Storage and production
You can transform your business to a revenue-producing asset that lets you work as much or as little as you want.
3 Year Owner Projections - $3.3M
3 Year High Level Owner Overview
Next we ask the owner about their vision and expectations of growth within the next three years. This allows us to determine if this owner and business has the potential for “Exponential Growth”.
Below is the owners list of significant factors:
- Store1: Atl(2000sf), Sell: Leaf tea, Drinks, Pastries, Hard/soft goods; 25% sales
- Store2: Atl(1500sf), Sell: Leaf tea, Drinks, Pastries, Hard/soft goods; 15% sales
- Store3 Other(2000sf), Sell: Leaf tea, Drinks, Pastries, Hard/soft goods; 15% sales
- Ecommerce: All items; 20% sales
- Mobile: 20 Carts (2x4x6 display) with 18 teas
Farmers/flea markets; Corp setting; Special events
(avg $950 event); 15% sales - Wholesale: 12 Coffee Shops; 9 Specialty; 24 Restaurants; 15 Other; 10% sales
- Warehouse: (1500sf); Storage and production
You can transform your business to a revenue-producing asset that lets you work as much or as little as you want.
Research beyond the business plan
Client: Tea Company
Owner: John & Mary Smith (own 100%)
Type: LLC
Est: 2014
Sales: $1.1m Profit: ?
Location: Atlanta Ga
Staff: 6 fulltime; 3 parttime
Debt: $350k (mostly buildings)
Funding: Needs $0
Website: justaddhoney.net; face; instag; twit
Biz Overview:
Tea Company is offering you a new tea experience. We create
thoughtfully blended loose teas that anyone can enjoy.
This is the most worrying part for most clients going through or needing a turnaround; it means that incoming cash flows will change completely. We help ease these issues through fantastic financial projections and a realistic view of what can be accomplished.
Creating a list of potential qualified prospects for your service or product can be daunting when you’re beginning your business. However, this needs to be considered as a follow up on your Target Market Analysis so you can hit the ground running.
3 Year Business Plan and Goals
Once the right plan has been created we work at creating a strategy and roadmap that allows the plan to work. We look at a number of factors and make recommendations about steps which need to be taken to achieve ours goals:
- Assemble our team of experts
- Business analysis
- Build a Roadmap
- Build Marketing Plan
- Investment Analysis
- Financial Analysis
- Revise the Biz Model
- xos-Nexos – Company, Industry, Market Research
- Develop a Roadmap
- lombett – Industry Research
- Pronounce – market analysis report “slices”
The effort vastly improved the company’s planning and execution functions, created and implemented a new stock policy that accounted for specific SKUs and key variables, streamlined the order preparation process and reduced distribution transport times.
By the numbers, the effort:
- Reduced lead time by 43%
- Decreased variability by 50%
- Lowered the risk of back-order by 95%
- Increased stock for finished goods by 10%
The challenge is to bring a company whose web presence is boring up to date. The challenge is to ensure that when a client visits your website they feel positive about your company. The challenge is that most customers will judge you based on appearance alone, and if your website looks unprofessional or poorly made then they will think your company as a whole is unprofessional. Each and every part of the organization matters when winning over a new client:
- Improve sales and operations and production planning:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Determine the right inventory level:
With hundreds of medications in the market, Pharm Ltd. needed a proper method to predict and manage their inventory. Using a mean absolute percentage analysis (MAPE), the teams defined appropriate levels for raw materials and finished products by mapping actual versus forecasted sales on the most important SKUs.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
Next we ask the owner about their vision and expectations of growth within the next three years. This allows us to determine if this owner and business has the potential for “Exponential Growth”.
Below is the owners list of significant factors: