The bottom line is everyone’s business. Organizational modifications, operating leverage, cost constraints, reduced head count and reduced inventory will maximize operating income. There should be a continuous improvement culture.

Inventory and SKU Reductions

Optimal management of inventory will enhance gross margins. By working with production, EH&S, sales and marketing, we can aid in the disposition or rework of excess or obsolete inventory. Inventory is a crutch for fixed overhead and masks poor operations. Inventory itself is idle cash that consumes more cash to maintain.

Manufacturing Improvements

There are so many improvements within manufacturing organizations that can provide increased earnings. Evaluate the viability of outsourcing the manufacture of certain products. Other possible areas for improvement are cycle time reductions through optimized operations; improved cleaning procedures; real time in-line quality control tests; process waste reduction; labor cost reductions; overhead cost reductions; scheduling and managed maintenance to name a few.

Waste Stream Cost Reductions

We interact closely with EH&S to identify cost savings in the waste stream. Their main objective should be to provide technical solutions through the development of methods or procedures to reduce waste.

Purchasing Cost Reductions

Raw materials often make up the largest expense to the bottom line. We should interact closely with purchasing to establish alternative raw material sources and leverage supplier resources to control raw material costs or achieve raw material cost reductions.