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.
|