CASE STUDIES

King Baby

The Problem

The client is a luxury jewelry & accessories brand. The business had a great margin but was suffering from cash flow constraints operationally. Production & Fulfillment inefficiencies, along with a ballooning inventory were draining the company’s cash.

The Solution

After an initial deep dive, we outlined a plan to control inventory and streamline production scheduling.

1

The Discovery

The client described their problem/pain point as order fulfillment. They were filling orders late and getting worse. Our deep dive revealed the root cause of their issues was improper inventory control leading to overstaffing, improper production scheduling, and late fulfillment all of which had a major negative impact on bottom line.

2

The Work

  • Financial plans set
  • Understanding of Breakeven/Profit Points
  • Production Schedule for Core Product
  • Inventory Control Process established and Weekly Production Scheduling Systematized
  • Custom tools built for tracking Weekly demand vs. Capacity for Ops Staff
  • Ops & Executive Dashboard
3

The Results

  • Safe/Reorder levels set for all inventory products and weekly production scheduling process established
  • P2P practice implemented with structured weekly sales and Finance Meetings
  • Time Study/Analysis done on Product Sales to establish core production schedule and significantly cut Rush Orders on Production team
1

The Deep Dive

Our Deep dive revealed several large opportunities including establishing financial plans, correcting inventory & purchasing process, and implementing a weekly P2P check in with established performance and financial metrics.

2

The Work

  • Financial plans set
  • Retail/Service pricing validated
  • Understanding of Breakeven/Profit Points
  • Staff Compensation structure aligned with Breakeven Point
  • Inventory Control Process established and Weekly Purchasing systemetized
  • Key Retail Metrics established for tracking
3

The Results

  • Retail % increased from 9% to 16%.
  • Inventory process implemented
  • Reorder levels set for all inventory products and weekly purchasing practice established
  • Retail Pricing analyzed and corrected to cover expenses and ensure proper margin contribution from each sale. ($9k additional gross profit through year one)
4

Ongoing Support From Nercher

  • Financial Planning and Goal Setting
  • Weekly expense Review
  • Decision support and Financial validation
  • Pop up Inventory Audits
  • Monthly Financial Meeting
  • Bookkeeping Services
  • Nercher Quick View Dashboard
>99%
Inventory Accuracy
40%
reduction in Direct Labor spend
>99%
on time order fulfilment up from 67%
+$38K
monthly gross profits
  • Deep Dive
  • Inventory System Overhaul
  • Big 3 Blue Print

Know Your Business. Nercher Your Business. Ready to Make Progress?