Case Study 1 – Distributor of Natural Health Products

 This natural health products distributor had a vibrant and profitable business until some unforeseen financial obligations created a cash flow problem and brought the business to a standstill.  Suppliers lost trust in the client and cut off credit - resulting in inventory shortages. 

Customers became frustrated, as products were unavailable and many had switched to other suppliers of identical or similar products.  As well, staff had become unhappy and worried about job security, as the situation was never clearly communicated to them.  There was no clear strategy to deal with customers and suppliers.

What did wiserSolutions do?

We conducted extensive interviews with the owners and staff to get a clear picture of the situation to determine the best way to approach suppliers and to develop a strong customer win-back strategy.

Based on the interviews and further discussions with suppliers, we created a strategic plan and a cash flow management plan.  The cash flow management plan ensured that our client was able to meet their obligations of newly negotiated agreements with suppliers. 

We then created a prioritized list of the most important suppliers and best selling products.  Based on that information, we contacted each supplier and worked out a plan so that products could be re-stocked and the debt would slowly be paid off. At WiserSolutions, we understood from our years of experience in the wholesale and retail industry, that suppliers want to keep selling product and that as long as they can trust that they will be paid, they'll give it another shot.  

As part of a customer win-back strategy we conducted some product price comparisons with other competitors and to create an inventory control system to make sure products stock levels were maintained.  We also suggested an incentive program to win-back customers who had moved on.

What came out of our work?

As a result of the work that wiserSolutions did with this natural health products company, they are once again profitable and the business is running smoothly.  Credit terms have been re-established with 90% of their suppliers. An efficient and user -friendly financial management system has been set up and it ensures that suppliers are paid on time. The system also tracks the financial picture. 

Our client's sales increased by 50% over the next 6 months and are continuing to grow.  Based on our recommendations, they have put an inventory control program in place as well as several other systems to ensure customer satisfaction.