Success Story

Business Enterprise Review Finds Efficiencies and Ways to Improve Cash Flow

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The Challenge

A highly successful, regional distributor of office break room supplies was embarking on an expansion of their business model, including the addition of new product line offerings. The anticipated growth was expected to result in a rapidly changing business environment and included the task of adding approximately 40,000 additional SKU product codes to their current system, as well as altering their current sales, supply chain and delivery processes.

The distributor had an aging and poorly supported system that could not adapt to the new business requirements. As a result, they were forced to address functional requirements with time-consuming manual processes and work-arounds, which often resulted in error. The insufficient software system, coupled with a vendor that was unable to deliver new functionality, was a major risk to the future of their business.

More importantly, due to the inadequacies of the software, delays in billing caused cash flow issues and lack of real-time information prevented daily management decisions such as inventory replenishment.

The Solution

The distributor went in search of a third-party opinion with hopes of obtaining insight into how they should proceed. Already a current blum client, they knew of our depth and breadth of additional consulting services, including those offered by the Business Systems Consulting Group. The Business Systems Consulting Group met with their management and recommended a Business Enterprise Review (BER). The blum team then learned about the distributor’s business through extensive interviews and a complete assessment of the company’s existing business strategy, processes and software systems.

blum’s team then performed a Strategy Impact Analysis, Requirements Analysis, Current Capabilities Analysis and Gap Analysis.

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The Benefits

blum’s findings showed that the client would greatly benefit from a new software management system. We provided the client with a list of viable software systems that would better support and automate their business processes. The suggested software would allow the client to eliminate risks, respond more quickly to the changing market requirements, increase efficiencies, reduce inventory and improve cash flow.

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