FEATURED PROJECT
A success story in business growth through commercial optimisation…
Project date March 2023 to September 2023
THE BUSINESS CONTEXT
When Jandri van Zyl, Founder and CEO of the popular baking business The Velvet Cake Co., noticed cash flow struggles affecting their ability to pay suppliers, they turned to us for a solution. The company, a medium-sized player in the baking industry, was facing growing financial pressure, and time was critical.
We immediately dug into their annual financial statements and current management accounts to uncover the problem. What we found was clear: rising costs were eating into profits, resulting in a declining gross margin.
WHAT WE DID
Our approach…
Conducted a product range review, cutting low-margin items that were dragging down profits.
Re-engineered medium-performing products to improve profitability.
Developed a targeted product development strategy aligned with costing structures.
Took a deep dive into expenses, scrutinizing every line item for efficiency.
Introduced monthly financial reviews and weekly sales reviews to stay on top of the numbers.
WHAT WE DELIVERED
The results…
Boosted gross profit by 8% within just three months.
Successfully relocated the factory as part of a broader expense management strategy.
Established strict approval processes for product costings, ensuring new products were financially viable.
Implemented manufacturing specs to maintain quality control and manage costs.