Company Overview: $100M Pipe and Parts Distributor
Company Overview
- $100M pipe and parts distributor
- Private equity owned
Business Facts
- Annual revenue decreased from $115M to $85M
- Annual Profit decreased from $12M to $3M per year
- PE firm was unsuccessful in its attempt to sell the company
Results delivered
- Profit increased by 50% within 12 months
- Closed one nonstrategic inventory location saving $800K per year
- Strategic procurement – Negotiated long term contracts with major suppliers and reduced procurement cost by 8%
- Inventory rationalization – Increased inventory turns from 1.5 to 3 per year