Boosting Profitability and Reducing Inventory Costs
Domotz helps IT professionals everywhere better assist their users remotely, reduce support costs, and operate their networks more efficiently. But as they continued to see rapid growth in their industry, they quickly realized that they too needed help.
More orders were coming in than could be filled. Inventory needed to be purchased. The inventory purchases took months to deliver and required cash up front. The supplier offered discounts for bulk orders but it was unclear what Domotz should do based on available cash.
With six figure implications, Domotz needed to know what their cash position would be by the time the order came in and if a fundraise was necessary. To add to the complexity, Domotz has companies and staff across three countries and currencies. They also had multiple product lines, including software components.
Ralston delivered adhoc, reporting and analysis, creating detailed cash reporting and forecasting across all Domotz companies. Ralston worked with senior management to determine segmentation of customers and product lines for accurate profitability and cashflow analysis. With Ralston’s analysis, Domotz was able to cut an unprofitable product line. Additionally, Domotz was able to capitalize on bulk purchase order discounts by knowing exactly how much cash they would need to fill the order and run the business.
“Ralston was exactly what we needed. We literally run the business much more effectively with the information and guidance Ralston provides. I would highly recommend them to any business owner that wants clarity around where they’re heading and the decisions they’re making.”