Streamlining Cashflow for a Pharmaceutical Distributor 

 

CLIENT CONTEXT & PROBLEM

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• The client is a 10-year-old company, engaged in manufacturing and trading of pharmaceuticals. Its market spread across South India. 

• The industry is known for its high profit margin , however the client company undergoes liquidity problems, leading to issues in payment to supplies and employees.  The company has invested heavily in building supply chain and employee resources.

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APPROACH & SOLUTION

 

• Map the existing processes

• Map the existing flow of operations in all departments

• Conduct internal audit for accounting books  by our Chartered Accountant

• Stock audit 

• Identified gaps in operations and defined Standard Operating Procedures.

• Suggested and overseen implementation of rectifications which had major impact on financials.

• Implemented tools for  performance visibility to management team

• Designed roles and responsibilities along with Key Performance Indicators 

• Set benchmarks and ROL for inventory

• Optimized receivable and payable cycle

• Suggested automation solutions

 

BUSINESS RESULTS

 

• 18% improvement in cash flow

• Improved inventory management

• Avoided stock outs

• Better visibility of cash flow that enabled management to make right investment decisions

• Improved process efficiency

• Increase of bottom line - 7 to 10% in the first year