• Our client started to experience declining profitability and increasing inventory levels resulting in tight liquidity.
• Fort Dearborn Partners (FDP) was engaged to help management return the Company to profitability and identify ways to better manage inventory.
• FDP worked with Management and identified and recommended changes to the following:
- Raised prices on value-added products
- Improved warehouse product placement to allow more efficient picking
- Modernized the Company's inventory purchasing system, including making major changes to product mix to increase inventory runs
- Rationalized personnel through targeted reductions as well as targeted hiring