Cash Flow Deficiency

Problem

  • The Client came to us amid an ongoing cash flow deficiency

  • The Client’s inventory purchases were not being managed properly, which resulted in an excess of over $1 million in inventory and a backlog of accounts payable

  • Consolidating the purchasing, inventory, and accounting departments to communicate with each other on a more regular and consistent basis

Solution

  • Pride Advisory negotiated new payment terms with vendors to ease the cash flow burden and keep the vendors’ shipping product

  • We reduced inventory by establishing a hybrid JIT inventory solution to reduce inventory to a more appropriate amount to maintain the current orders

  • Implemented new control environment including AP, PO, and inventory management system so the Company’s operations become more efficient and transparent

Result

  • Pride Advisory stabilized the financial health of the Client while maintaining a steady growth of new customers 

  • Productivity increased company-wide, and employees became more in control and informed of the tasks they have to complete