Consumer goods product manufacturer and distributor

Primary channels: Regional and national brick and mortar stores

Secondary channel: On-line 


Year 1

Year 2 (YOY)

Year 3 (YOY)

Sales %








Year 1

  • Outsource high labor cost finished goods to China
  • ERP implementation to manage supply chain

Year 2

  • Realize standard cost reductions
  • Reduction in force
  • Lead times for finished goods nearly triple
  • Minimum order quantity necessitates increasing and using more of line of credit
  • Acquire more warehouse space
  • Defective product is found as large lots are broken down for packaging and shipment
  • Customers begin reducing their purchase split as On-Time-In-Full (OTIF) performance declines

Year 3

  • Obsolete and Slow-Moving Inventory (OSMI) increases
  • Warehouse labor increases
  • In house manufacturing ramps up to fulfill order shortages
  • Overall labor costs have increased to over original base case
  • Warehouse space increases
  • Debt increasing
  • OTIF performance decreases
  • Bankruptcy

Year 4

  • Business sold to multi-national conglomerate for the complimentary brands
  • Final reduction in force and asset liquidation
  • You can buy these products now, probably have some of them in your house today, and never knew the story
  • Was all this worth it?

If you would like to request a listening session for your business, you can contact me, Bob Jeske, by email at