Book and Magazine Distributor

Company Overview

Book and Magazine Distributor - A regional distributor of books and magazines servicing all major retailers with revenues of $800 million, operating four Distribution Centers.

Engagement Overview
•  FDP was engaged by the Board of Directors to perform an operational review of the company and to assess strategic options.

•  FDP’s review and analyses included:
•  Assessing the channels of distribution and the leverage of the publishers and retailers
•  Reviewing management’s pricing strategy
•  Performing a detailed analysis of profitability by customer
•  Evaluated a downsizing strategy supported by the review of same store sales increases/decreases and new store openings by customer & profitability by market segment
•  Analyzed warehouse operations and freight logistics to reduce operating expenses

•  Worked closely with management to prioritize strategic initiatives and develop tactics to improve profitability:
•  Initiated a significant price increase for select customers
•  Implemented a fuel surcharge price increase for select customers
•  Advised management on obtaining price reductions from major publishers
•  Promoted an aggressive sales calling effort that resulted in substantial new volume

•  Assisted management in the implementation of expense reduction program.
•  Identified and implemented $8 million in strategic and tactical initiatives to restore profitability.

•  After evaluating market competition, trends and assessing the current, inadequate return on investment, FDP recommended to the Board that the magazine business be sold.

•  FDP identified the buyer and advised management on the sale of the division.