Case 1 - Improvements in Profits through ZDN Financial Systems
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Case 1 - Improvements in Profits through ZDN Financial Systems
This improvement project was taken up for a 10 year old Automobile Component Manufacturing firm doing business nationwide. The company has a fully functional manufacturing setup in Pune, India. The major intention of this engagement was to improve the financial health of the company and maintain it for the long run.
Challenges
- Growth could be seen in Turnover but not in Profit Margins.
- Sudden unpredictable cash crunch in a quarter or a month.
- Directors couldn’t reinvest into business as profit margins were shrinking
Solution Provided
- Detailed Financial Analysis was conducted in order to check their nature of expenses, cost analysis and outstanding receivables.
- Formats & Trainings to their account and finance team for Budgeting, Projections and Business Goals.
- MIS reports and Conducting Agenda based weekly and monthly meetings
Result
- Root Cause identified and improvements in Margin by 3% within first 3 months of engagement.
- Overall Profits were improved by 7%.
- Strict Budgeting and Projections lead to systematic reinvestment in Business leading to more qualified employees and better technologies.