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About Miller Grossbard
 

Packaging Company

Miller Grossbard reviewed the organizational and procedural needs of a chemical packager. The young company had become known for its quick response to product inquiries. Now, it was the acquisition target of its primary vendor. The packager wondered if it could strengthen the overtures of its chemical supplier.

The consulting arm of Miller Grossbard met with the owner to discuss the company's situation. The packager had a bright future if it could strengthen its organization and fend off the predatory behavior of its chemical supplier. Finding another supplier was not a solution since they, too, were more interested in acquisitions than supplying small packagers.

After interviewing key employees to learn how corporate responsibilities were delegated, plant facilities were toured, and financial statements were studied. The company's balance sheet was strong, but manual production processes were used. The computer network and accounting system were primitive. Checking back orders meant retrieving sales orders from a file cabinet. A part-time employee made collection calls, yet accounts over 60 days were 17 percent of total receivables.

The company had added large customer accounts, but was concerned whether more accounts could be absorbed.

Following an initial investigation, Miller Grossbard addressed these multiple issues in a report. Of immediate interest were managing the accounts receivable and improving management information. More distant issues included automating the packaging process, obtaining industry certification, and enhancing sales and marketing.

Miller Grossbard acted on the accounts receivable issue by writing a procedure describing the collection process and the making of calls. Elevating the stature of the collection process justified making the receivables clerk a full time employee.

Information technology offers a wide range of solutions for a variety of budgets. Miller Grossbard suggested a system to coordinate estimating, purchasing, inventory control, and back-order management. As in-house familiarity with computer networks increased, adding Internet connections would enhance market research and allow electronic ordering by customers.

The company's dilemma was how to accommodate more large orders without an enormous capital commitment. Miller Grossbard suggested first identifying suitable equipment to increase plant capacity followed by a capabilities assurance evaluation. Since this investigation would not offer an immediate solution, the interim answer was manual labor that could adjust with the fluctuating demand from the small sales base.


 

"My young company,
although composed of
loyal employees,
needed assistance in
developing new operating
procedures that would
facilitate further growth.
I wanted a consultant
who could see the necessary
changes and communicate
them to my staff and me.
After retaining Miller
Grossbard & Associates to
conduct a needs analysis,
I was able to implement the
needed changes on my own."
-- Chief Executive Officer



 
Miller Grossbard & Associates, P.C., 2204 Louisiana, Second Floor, Houston, Texas 77002, 713.622.3960, 713.622.4082 fax

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