PHOTOGRAPHIC PRODUCTS

A photographic products distributor has a large number of unsold digital cameras in their warehouse. Operations require the space taken by the slow moving stock for replenishment inventory of newer more innovative products.

A collateral issue is the embargo in the marketing budget affecting sales support for the new products due to a downturn in category sales.

Myriad value the slow moving stock at 2.5 times market price. Payment would be scheduled through an equivalent value in pre-paid media* together with cash from a modified marketing budget, resulting in a significant media budget to support the new products.

* Media provided through Myriad is benchmarked for price and placement; Old stock is removed from the warehouse in time to effect seamless logistics operations of new products.



GIFTWARE IMPORTER

A large importer and distributor of giftware had long viewed the process of stock returns as a routine and inefficient part of the sales process – with acknowledgement for the drain on resources and profits.

Myriad consulting was engaged to review overall Supply Chain Operations. Recommendations included;

  1. Integrated Distribution/Returns strategy – where the projected efficiency gains covered process outlays for returns processing.
  2. New Returns Management process – scheduling improved cycle time, visibility and clearance rates.

Added benefits from the streamlined logistics operation realised;

24
increase in recoverables
18
decrease in returns
20
decrease in damage


EXCESS INVENTORY

A failed product launch last year led to cancelled production and $2.6 million inventory and holding costs. Attempted disposal valued the stock at less than 30% of production cost.

The solution – (Logistics) acquire the entire product at the audited cost of production using optioned cash savings of $2.6 million against identified supply chain expenses of $4.85 million over three years. The inventory is sold to an approved buyer under agreed sale parameters.

Myriad packages identified supply chain distribution expenses at $4.85 million over three years to realise cash savings through deployment of approved logistics plan.

A new product launch required $0.983 million less than originally budgeted after adjustment for the proceeds realised from the disposal of the failed product.



CAPITAL – BUDGETS

For some time, a client company needed to upgrade essential production plant. Upgrades would improve competitiveness through efficiency gains in faster production and lower cost, but the necessary $3.85 million was not approved in successive capital budgets.

Myriad C Suite services (Finance | Marketing | Supply Chain)

  • Confirmed the efficiencies and identified increased production capacity
  • Purchased portion of the increased capacity.
  • Packaged inbound and outbound supply chain expense and part funded with cost savings

Production plant was acquired through a combination of cash and cost savings at the outset of the agreement for $3.85 million. Supply chain services are performed at benchmarked cost and service criteria and spare production capacity deployed though existing and new clients.

On the other side of the deal, additional production capacity was placed with new customers generating additional cash and forward redemption of cost savings funded by Myriad.



LEASE REMEDIATION

Restructuring freed up significant retail and commercial floor space for an Australian client. The unused floor space represented five years of lease exposure approximating $3.2 million.

Myriad Real Estate confirmed the lease commitment and identified $12 million in upcoming 18 months of catalogue and outdoor advertising. Separately a further $10 million of retail space fit outs over next 18 months was acknowledged and both advertising and fit out expense purchased at benchmarked cost and performance criteria.

The monthly lease payments were covered, optioned sub lease opportunities included; advertising and retail fit outs proceed as planned and the Australian client budgets improved cash flow of $53,333 per month for unused lease space.

On the other side of the deal, the Myriad Real Estate solution included the sub lease of unused floor space with new tenants. The opportunity allowed utilization of otherwise vacant space to generate cash and redeem forward savings ahead of the planned 18 month term and in addition rolled over a similar arrangement for the remaining lease period.



MEDIA LAUNCH

An authorized dealer wanted to conduct a media campaign for their service offering. The objective: to inform potential customers about buying used equipment with OEM certification at significant cost reduction.

Cash budget constraints had always hindered the launch of a full media campaign for the program. Myriad C Suite consulting solutions enabled the Dealer to purchase the media space they wanted with a mixture of their cash budget and cash options through Myriad introduced supply chain efficiencies.

Myriad packaged the entire media plan for a ninety day run, including metropolitan dailies, sports, and lifestyle and trade publications. By using Myriad the dealer saved more than half the cash they would have spent on the media plan, and realized the balance though supply chain efficiencies.