Virtual CFO solutions for a personal care brand.
Index
2.1 Business challenges
3.1 Budgeting
3.2 Investor reporting
3.3 Management reporting
3.4 Outcomes
1. Introduction
We are providing CFO consulting solutions like performance reporting, costing and pricing for products, monitoring profitability for key products, set up budgeting and forecasting including Annual Operating Plan and much more.
2. Client profile
The client is a personal care manufacturing company with offline and online channels selling its products across India.
2.1 Business challenges
- Lack of formalized Annual Operating Plan (AOP) framework.
- Inadequate real time tracking and rolling budget mechanisms.
- Absence of investor ready Management Information System (MIS).
- Extended existing MIS preparation timelines.
- Lack of visibility on manufacturing related costs.
- Lack of clarity on unit economics for key products.
- Inconsistent collection monitoring system.
- Absence of channel wise sales metrics.
3.Our approach
3.1 Budgeting
- Designed a detailed Annual Operating Plan (AOP) for the entire financial year.
- Introduced a rolling budget mechanism for monthly tracking.
- Executed consolidation of budgets of two entities to understand the plan at a group level.
3.2 Investor reporting
- Developed investor grade MIS with monthly Profit and Loss, Balance Sheet, and Cashflow statements.
- Implemented data driven decision making through variance analysis
- Reduced MIS preparation and presentation timeline from 15 days to 10 days.
3.3 Management reporting
- Established product level actual cost tracking in a manufacturing set up.
- Leveraged unit economics for key products to drive pricing decisions.
- Created Power BI dashboards for channel wise sales tracking.
- Devised collection monitoring system for online portal collection.
3.4 Outcomes
- A detailed data driven financial plan ready for execution and real time tracking.
- Enhanced transparency through better and timely presentations to the investors.
- Reduction in MIS timelines by 33%.
- Data driven pricing decisions powered by unit economics insights.
- Improvement in unit economics for key products by more than 10%.
- Power BI dashboards enabled a sharp focus on multiple sales drivers like location, products, and portals/distributors.
- Reduction in cost of goods sold (cogs) up to 2% through better tracking of costs.
- Streamlined working capital management through better collection monitoring.
