Case Study

Chemical Manufacturer - Value Pricing

Situation

  • Privately owned leading national distributor of industrial chemicals with multiple distribution centers
  • Margins were eroding due to lack of standard practices in handling various order-to-delivery work streams including quoting, price changes, and customized pricing

Actions

  • Developed a Playbook of Best Practices to standardize key business processes and creating a culture of performance accountability.
  • Implemented and standardized managing procedures for ordering, invoicing, and purchasing and instituting accountability to drive continuous improvement
  • Initiated and developed a formalized Price Book process to establish accurate list prices and reduce margin erosion

Results

  • Increased EBITDA of $3.9M
  • Increased quote-to-yield rate by 30%
  • Reduce invoicing errors by 60%
  • DSO (receivables measure) was reduced by 4 days, improving cash flows.
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Argo, Inc is a global operations consulting company dedicated to implementing lasting performance improvements with offices in Chicago (US), Germany and Canada and an active presence in more than 20 countries. Specialties include: Lean Transformation, Six Sigma, Kaizen, Revenue Enhancement, Product & Process Innovation, Sales Effectiveness, Value Pricing, Supply Chain, Strategic Procurement, Network Optimization, Transportation & Logistics, Working Capital, VA/VE, Pre/Post Merger Integration, Training.