Areas We Help You Excel
Investing in the right management solutions isn’t just about efficiency; it’s about empowerment. It’s about giving yourself, your team, and your business the tools and resources needed to scale up, achieve breakthrough performance, and navigate the exciting – and sometimes choppy – waters of success.
Transform From Bumpy Ride to Smooth Sailing
Leading a business is a tough gig. You need vision to chart the course, but also the smarts to run it efficiently. That’s where management solutions come in. However, every journey has bumps – both the obvious roadblocks and the hidden ones you might not see coming.
Don’t worry, proven management solutions are here to help. These easy-to-implement tools act like pre-built systems for crucial tasks, plugging those hidden gaps that could be silently draining your profits. Many smaller businesses miss out on these power-ups, leaving them open to costly mistakes (we’ve all been there!). By bringing these solutions on board, you gain the structure and efficiency of larger corporations, boosting your profit centers while minimizing mishaps. It’s a win-win for you and your business’s bottom line!
How to supercharge profits?
Profit Centre Modelling
We don’t just focus on the surface. We build a system of financial efficiency and control. This includes integrating workflows with your annual operating plan, clear communication of budgets and targets, and performance-driven reviews of your profit and loss statements.
The benefit? Crystal-clear financial insights that empower you to make smarter decisions and maximize profitability.
Optimizing Revenue Streams
Streamlining Operations
Eliminate Hidden Costs
Uncover Financial Blind Spots
Unparalleled visibility into your company’s operations
Business MIS Building
“You were awesome in profit centre modelling”
– Johnson, Trident Arrow
Partnering with Varada gives you access to a team of experienced professionals with a proven track record of success. We’re committed to helping businesses like yours achieve their full potential.
Real-Time Dashboards
Departmental Insights
Easy-to-Use Interface
Alerts & Notifications
Success Stories
The Challenge:
Our client, a building material retailer, was facing a number of challenges that were hindering their growth. With sales stagnating at a low ₹15 lacs and a massive inventory of ₹2.5 crores, their cash flow was poor, and they were struggling to make payments to vendors.
Diagnosis:
Upon closer inspection, we identified two major areas of concern:
- Inventory Management: An overwhelming ₹2.25 crores of the inventory comprised slow or non-moving items. Sales staff, limited to only 4 members, were naturally inclined to prioritize readily saleable items, further exacerbating the issue.
- Sales Management: The lack of a proper sales tracking system made it difficult to monitor sales trends and identify areas for improvement.
The Solution:
To address these issues, we implemented a two-pronged approach:
- Revamped Inventory Management:
- We analyzed sales data to identify fast and medium-moving items, focusing on optimizing stock levels for these crucial products.
- We streamlined the procurement process to ensure a steady flow of high-demand materials.
- Enhanced Sales Management:
- We expanded the sales team to 15 members, providing greater customer coverage and allowing for a more focused approach to selling slow-moving items.
- We introduced a robust sales tracking and inventory management system. This improved visibility into sales trends and allowed for data-driven decision making.
The Result:
The implemented strategies led to a remarkable turnaround within just 3 months:
- Sales soared to over ₹40 lacs, a significant increase of 166%.
- Inventory was reduced by ₹50 lacs, freeing up much-needed working capital.
- The improved cash flow enabled the client to settle outstanding payments with vendors, further strengthening their business relationships.
- With a focus on high-demand materials, the client was better positioned to procure fast-moving goods, ensuring customer satisfaction.
The Takeaway:
This success story highlights the critical role of effective inventory and sales management in the building material retail industry. By unlocking trapped working capital and implementing data-driven strategies, our client experienced a significant boost in sales and a healthier financial position.
The Challenge:
Our client, a leading international commodity broker, was facing significant challenges. Cash flow was poor, client defaults were frequent, and employee performance lacked direction. The company operated in a reactive manner, with individual employees handling tasks without a clear system or oversight. This resulted in missed contracts, late invoicing, and inefficient collection practices. Without defined goals, budgets, or performance measurement, the company struggled to achieve its full potential.
The Solution:
We identified key areas for improvement and implemented a strategic transformation plan. Inspired by the efficient processes of a bread factory, we divided the core activities – trade confirmation, shipment, and billing – into measurable Key Performance Indicators (KPIs). Individual Key Result Areas (KRAs) were then assigned to traders based on these KPIs.
Empowering Performance:
To promote accountability and excellence, we introduced a performance bonus system linked to achieving KRAs and collection targets. We also implemented a tracking system to monitor timely shipment, billing, and collection processes.
Financial Clarity and Direction:
For improved financial management, we introduced weekly and monthly budget reviews, along with informative business dashboards shared with all employees. This fostered transparency and empowered data-driven decision-making.
Client Segmentation:
Clients were categorized into A, B, and C based on their creditworthiness. This helped prioritize resources and focus on maintaining healthy business relationships with reliable clients (Category A).
The Results:
The transformation was remarkable. We identified and collected an outstanding amount of 150 million, allowing the company to repay most of its loans and achieve a surplus in just six months. This financial security paved the way for further diversification.
Key Learnings:
This success story highlights the importance of:
- Clearly defined organizational goals and targets: Knowing where you’re headed is crucial for effective business operations.
- Measurable KPIs and KRAs: Quantifiable metrics help track progress and guide actions.
- Performance monitoring and evaluation: Regular assessment helps identify areas for improvement and celebrate achievements.
- Strategic client selection: Focusing on reliable clients fosters sustainable business growth.
- Business Management Information Systems (MIS): Transparency and data-driven insights empower effective decision-making.
- Shifting from a “people-centric” to a “process and KRA-centric” approach: Systemization ensures consistency and efficiency.
By implementing these principles, our client transformed their business from a state of “firefighting” to a thriving and flourishing enterprise.