Client Profile:
B2B trading company specializing in industrial supplies (valves, pumps, and electrical components) to factories and EPC contractors
(Annual revenue: ~$7.5 million USD; pan-India sales team; credit-heavy business model)
Key Challenges:
- No tracking of product-line profitability or region-wise contribution
- Excess inventory of slow-moving SKUs caused working capital lock-up
- Receivables aging exceeded 90 days for over 40% of customers
- Leadership lacked real-time visibility into margin leakages and sales performance
CFO Pulse Approach:
🔰 CFO Shield (Stage 1)
- Reorganized the accounting structure to segregate revenue and costs by SKU category and customer type
- Standardized invoicing, credit tracking, and collections reporting
- Implemented better classification of freight, discounts, and warranty costs
📊 CFO Dashboard (Stage 2)
- Deployed dashboards to monitor gross margins, credit aging, inventory velocity, and order fulfillment
- Built customer credit dashboard integrated with payment history and overdue tracking
- Introduced sales dashboard with regional contribution, SKU performance, and gross profit per order
🔍 CFO Lens (Stage 3)
- Identified 17% of SKUs as non-moving inventory → initiated liquidation plan
- Highlighted margin erosion on high-volume products due to freight and discount overrides
- Improved forecasting using monthly sales trends vs inventory orders
🧠 CFO Brain (Stage 4)
- Helped revise customer credit terms based on payment behavior → improved cash cycle
- Designed a new sales commission model based on gross profit, not revenue
- Built a working capital strategy that aligned purchasing with sales velocity
Tangible Results:
- Reduced receivables aging by 28 days, improving liquidity
- Cleared $240K worth of dead stock and improved inventory turnover ratio
- Gross margin improved by 4.3% in 12 months
- Sales team incentivized for profitable deals, not just volume — improved pricing discipline
