Brankit Helps Ergonomic Desks & Stools Seller Climb out of cashflow pitfalls & revitalizes its Supply Chain

Project Summary

Brankit’s intervention tackled significant challenges faced by an ergonomic
Furniture seller. Inefficient PO placement, poor cash flow management, frequent stock outs, excess stock, and inaccurate profit calculations were addressed. The comprehensive plan of action
involved a supply chain takeover, a 60-day planned PO cycle, structured SOP creation, data-driven estimations, cash flow analysis, and improved profit calculations using Seller board.
This resulted in a remarkable 192.23% revenue increase, 21 IPI points increase, and 15 hours saved weekly, with 4000 Euros saved in shipment costs.

Initial Hurdles

  1. Inefficient PO Placement: POs were placed whenever required without proper planning, resulting in unpredictable inventory levels and additional shipping costs.
  2. Unstable Cash Flow: Poor cash flow management led to irregular earnings and financial instability for the business.
  3. Frequent Stock outs: Inadequate stock planning led to frequent stock outs, resulting in lost sales and dissatisfied customers.
  4. Excess Stock: Lack of demand planning contributed to excess stock, tying up capital and storage space.
  5. Poor Profit Calculations: Due to no proper record of COGs maintained, inaccurate profit calculations hindered the ability to make informed business decisions.

Plan of Action

To address these challenges, Brankit implemented a comprehensive plan:

  1. Supply Chain Takeover: Within a month, Brankit took over the complete supply chain process, analyzing existing business processes for inefficiencies. And figured out points of improvement.
  2. Structured PO Cycle: Instead of placing POs whenever needed we implemented a 60-day planned PO cycle to ensure that there is no unnecessary placement of POs.
  3. SOP Creation: Created structured SOPs on how a task can be performed in the most efficient manner taking less manual effort and time. (SOPs included short videos as well as step by step procedures in written form.)
  4. Data-Driven Estimations: Utilized data-driven insights to establish current days of cover, and perform excess stock analysis to determine SKU with unnecessarily high stock at hand.
  5. Cash Flow Analysis: Made use of Agicap for cash flow analysis and maintenance, we split a PO into two containers spreading out the cost that otherwise would have increased the negative cash flow ensuring more predictable financial stability and providing the room for steps to be taken towards a positive cashflow.
  6. Profit Calculations: Utilized Seller board for accurate cost of goods sold (COGS) calculations to improve profit calculation accuracy and provide thorough data metrics on an SKU level.

Outcomes Achieved

  1. Improved Cash Flow Management: With structured planning and Agicap integration, cash flows became more stable, eliminating unforeseen dips and boosting overall earnings and profits by 192.23%.
  2. Elimination of Stock outs: The implementation of data-driven estimations and timely PO placements improved overall stock in rates and ultimately led to an increase of Inventory Performance Index (IPI) by 21 points in 9 weeks.
  3. Lean Operations: Through structured SOPs and complete takeover of the supply chain, Brankit saved 15 hrs/week for the client to spend on business improvement.
  4. Shipment Costs Saved: By implementation of 60D cycle, we saved around 4000 Euros per 60 Day cycle in shipment costs, leading to a better cash flow cycle.

This successful collaboration with Brankit led to improved financial stability, a seamless supply chain, and higher profitability for the ergonomic Desks & Stools seller.

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