Manufacturing

Created more positive cash flow while reducing freight costs by 13%

CLIENT PROFILE:

  • Manufacturer of recreational vehicles
  • 2 locations
  • 500 employees

SCENARIO:

An exceptionally well-run organization, the client’s business is low-margin and provides endless product customization options for its customers. On top of that, products are almost always purchased with discretionary income. While the market might be good today, the downturns of the past are still vivid memories. In preparation for the future, this manufacturer turned to Silverback to uncover expense reduction opportunities.

Action

During this process, the Silverback team analyzed $2.5 million in spend over four spend categories. This included thousands of invoices across more than 40 vendors. The only goal: To develop a strategy to reduce expenses and improve pricing and terms with key suppliers.

Results

  • Silverback negotiated a new pricing structure with their transportation vendors and implemented changes resulting in a freight cost reduction of 13% annually.
  • Wrapped up a packaging cost reduction of 18%.
  • Obtained a five figure refund on utilities and realized an ongoing utility savings of 7%.

Through expense reduction implementations, Silverback put additional funds back into this manufacturer’s cash flow and positioned them for future market downturns.

Freight Savings

13%

Utilities Refund

$1,300

Utilities Savings

7%

Packaging Reduction

18%

If you're ready to put a fresh set of eyes on your expenses, contact us.

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