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.