Located in Monroe, NC is an e-commerce used auto parts business selling parts from dismantled salvage vehicles. Originally thriving under a model that was dependent on high scrap metal pricing, as scrap prices began to drop, inefficiencies in the operation surfaced, and the owner became overwhelmed. To make the situation more challenging, the operation was spread out over three locations with management and an inventory system in disarray. There had been no bookkeeping or accurate financial reporting for several years, and as the owner struggled to maintain control, the viability of the business and supported cash flow became questionable.
Fortis Business Advisors was engaged to help ownership regain control over the business by installing the proper systems, procedures, and controls to improve performance, as well as, metrics for proper performance measurement. Fortis immediately took control of the business and generated preliminary financials to determine the exact condition of the business, created a Dashboard Report addressing metrics specific to the business, and engineered the business for value. Fortis assisted in selling off unused equipment and generated quick cash by scrapping all dismantled inventory and liquidating static inventory. To consolidate operations, a new location was identified, and plans were drawn up for a new layout that included an organized and efficient inventory management system with reorganized and retagged inventory, as well as a parts staging area, a photography area, and picking, packing and shipping systems and areas.
"My business and my life were transformed in a few short months."
- James Sharp, Owner
Ecommerce Auto Parts Business
Business Performance Optimized