Case Study 3: DirectProfitMax™

Challenge: A growing nutraceutical company with increasing sales found itself stunted by working capital constraints.

Approach: The ProfitMax process uncovered big opportunities in procurement. The firm was spending $400,000 every four months in inventory, and the timing of inventory payments did not closely match the firm's revenue or cash cycle. KPI Direct negotiated more favorable manufacturer terms and built a mutually beneficial relationship.

Success: The inventory turn rate increased from 3 to 12 times per year and the extended payment terms (30 to 45 days) improved the working capital to help fund ongoing growth.