MY ACHEIVEMENTS
Project
Diversify
Developed Second Division of the Company Resulting in Improved Margins and Operational Control
SITUATION:
Prior to the consolidation and centralization of operations at many of the nation's leading grocery retailers, all of the buying, advertising, and operations were handled on a market by market basis at the division level. In 2002 Safeway was one of the first retailers to start centralizing their operations at their corporate headquarters. Identifying that the sampling and product demonstration programs were handled at the division level by smaller and less sophisticated companies, I developed an action plan to capture a $15M piece of annual business.
ACTION PLAN:
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Created a second division of the company that focused its efforts on selling to the large grocery, mass, and do-it-yourself retailers as customers, and pitched the centralized management of their in-store sampling programs into their consolidation.
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Developed a web-based sampling and demonstration management system customized for each major retailer across the country, creating a centralized and automated program that could be managed at corporate headquarters, and communicated out to the divisions as well as down to store level.
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Implemented a sales and marketing strategy to increase sales at each of the major retailers, capitalizing on their account-specific initiatives and driving traffic to their stores in partnership with the consumer packaged goods community.
RESULTS:
The web-based management system was a success and resonated with the many of the large retailers as they started to centralize their operations. The company was able to secure new clients in Safeway, Albertsons/Supervalu, Delhaize Group, The Home Depot, and several Kroger divisions as exclusive customers. The result was an additional $40 million in annual revenues to the company. The sales and marketing strategy drove incremental sales for each retailer while maintaining a customized program at each account.
Project
Roll-Up
Project
EBITDA
Growth
Strategic Acquisitions and Vertical Integration of the Industry
SITUATION:
The company outsourced the execution of its in-store sampling and demonstrations programs to local labor providers in each market and by specific retailer. There were few checks and balances over management of the programs, and the quality of the personnel provided by the local execution companies varied significantly. This gave the company little control over the end result of the programs being funded by the marketing budgets of the Fortune 500 consumer packaged goods clients of the company.
ACTION PLAN:
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Leveraged the program management contracts secured with many of the leading grocery, mass, and do-it-yourself retailers, and utilized the quality control issue to be able to make the decision which local companies retained their local business.
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After determining which companies were the best in class labor providers, a plan was developed to acquire and organically grow each company into other markets where there were accounts to be serviced with our own direct execution force.
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Acquired 18 of the best in class in-store sampling, demonstration, and merchandising companies that gave the company national coverage and control over the execution of the majority of the company's client funded programs.
RESULTS:
The acquisition of the 18 companies added an additional $35 million in revenues to the company and increased gross margins by 50%. The acquisitions vertically integrated the operations of the company giving execution control of the consumer packaged goods client-funded programs with each major retailer. Developing a direct execution division of the company led to securing a contract with Walmart.
Financial Restructuring to Optimize Visibility and Profitability
SITUATION:
The rapid revenue and client growth of the company outstripped the financial processes, systems, and capabilities of the organization. An antiquated financial reporting system obscured visibility of the company’s financial position, and jeopardized valuation while the company was being acquired by private equity.
ACTION PLAN:
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Conducted a thorough search and hired a world class CFO from a prominent Consumer Packaged Goods manufacturer with the knowledge of the industry, and the acumen to address the current situation.
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Conducted a request for proposal for an upgraded financial software system to give the company the capabilities and visibility to manage the financial growth and affairs of the company.
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Hired new talent on the finance team, including a new Controller to add capabilities to the team during the transition to a new system.
RESULTS:
In the first year of implementation, the company increased EBITDA by 143% over the previous year. Cash flow and the cash position of the company increased substantially. Accounts receivable aging days decreased by 45%. Increased the upfront payment percentage of client contracts from 40% to 70% based on the financial stability of each client.
Acquisition Consolidation - Operations Re-Engineering
SITUATION:
The company had completed over 18 acquisitions over the course of three years, and there was a fragmented operations in the organization with each acquisition still working on their own operating system. This created significant duplication of efforts, and redundancies in the processing and execution of client programs.
ACTION PLAN:
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Hired an outside consulting firm to assist the company and its managers in the consolidation and integration of the operations of the company’s acquisitions to corporate headquarters in Chicago.
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Re-wrote the web-based operating system of the company to include the operations of the company’s acquisitions, eliminating duplication of order entry and the redundancies that occurred in the field.
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Closed those satellite offices that were strictly operational, and kept smaller offices that were sales and client focused. Consolidated key operational personnel to headquarters.
RESULTS:
Saved the company $5 million in annual SG&A expenses by successfully consolidating the operations of all acquisitions and personnel to Headquarters without disruption to client services. Re-engineered the operating processes of the company and implemented a new web-based operating system that eliminated the redundancies in the company’s operations.
Project
Integrate
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