We’ve worked with a variety of clients, and one of the more particular aspects of one of our clients was that they ran a mainly seasonal business. This led to a lack of revenue continuity, a problem a lot of organizations can have, but it’s especially prevalent in seasonal businesses. This, coupled with a rise of raw materials costs, led to a number of financial issues with the client as we began to work with them. Here’s how we helped them get back on track:
On the first issue, revenue continuity, we asked for a lot of numbers from them. We were able to give their team actionable items, and create a predictive model that helped forecast labor costs for the upcoming week. We also helped with preemptive marketing that increased activity during the busy season. This all led to a more stable revenue stream.
20%
Reduction in labor cost
10%
Reduction in raw materials costs
35%
Increase in revenue during busy season
Specifically, we were able to reduce their labor costs by 20%, week-to-week, and we were able to cut down excess purchase of raw materials by 10% through our models. Speaking of Raw Materials, onto the next issue:
As with many organizations during this recent period of inflation, the rising costs of raw materials led to a challenge for the client. Based on past data we had, the client had previously taken about a month after costs went up to adjust the pricing of their products. After we came in and implemented better tools for their leadership, to not only be more aware of the raw materials pricing, but also to be able to react faster, we were able to reduce the time it took to react down to one to two weeks.
By reducing the red tape and helping the team find more clarity, this led to a 35% increase in revenue during the busy season. By helping increase the ability for the client’s leadership team to react to “real-time” market changes, we were able to help them immensely.
