Increasing the Profit and Cash Flow of an Established Wholesaler & Distributor

Cillian took over a wholesale and distribution business in March 2020, just as the COVID pandemic was taking hold on UK. The business, well established since 1996 had stagnated and was in need of refreshment and an efficiency drive was at the forefront of this.

The 2018/19 financial year saw this business make a small profit, following years of steady but not increasing, profits. With the culmination of the 2023/24 financial year, profits were 10 times what they had been just five years previously. These levels have been maintained throughout 2024 and into 2025.

The company reduced from two operating sites to one and cut staff from 19 to 12. This reduction was a mixture of staff at the depot that closed and redundancies at Head Office as a result of a consolidation of six roles into three more effective and motivated positions. Multiple staff began handling dual roles, leading to increased productivity, responsibility, and job satisfaction. Additional training helped staff cover each other’s roles, increasing flexibility and engagement.

Operational changes included negotiating better product pricing, improving processes to reduce errors, and increasing customer satisfaction. Mistake reduction also improved stock management. Management stepped back from daily tasks to identify business strengths and weaknesses, focusing growth and marketing efforts on strong areas. Supplier relationships were also enhanced in these areas.

Cost reductions were achieved across several areas including phones, IT, waste, and professional services, improving profitability without needing a huge increase in sales. Marketing strategies were refined, with investments directed toward strength markets, maximising greater returns.

The business, now almost 30 years old is in a stronger position than ever with regards cash flow, stock levels, staff training, knowledge, service levels and route to market.

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Case Study: Service Industry