ROMTech

Challenge: In the case of ROMTech, flattened sales projections , coupled with a difficult subscriber payment, business model and a delayed 510k accreditation led to a critical need to rebalance a manufacturing and bottom line strategy to meet a new topline reality. 

The Solution 

Perform a hard inventory count and become surgical with managing aging AP, developing an innovative production mix schedule that allowed the company to meet demand at less than 25% of the traditional manufacturing costs. 

The strategy required a very inclusive communication plan with all existing vendors

Monthly vendor payment schedules were adjusted to an incentivized weekly pay down schedule. 

Bi-Weekly reports and conference calls with key partners and vendors for Real-Time updates on manufacturing needs and projections 

Eric created and led a team of engineers and regulatory experts focused on delivering the 510k program 3 months early creating $7 million of new revenue within the current fiscal year, and consumed lagging inventory. 

Worked with the finance team to secure a line of credit to carry the 7-month initiative. 

Results

Within 7 months inventory had been normalized and a new production planning strategy had been vetted and implemented. Business operating procedures and investment protocols had been implemented, and the business health was restored.

• Inventory levels were reduced from $28M to $8M through the implementation of a hybrid Sales Order / KanBan management system. 

• National distribution centers were incentivized 

• Vendor inventory system negotiated, allowing fulfillment against short-term production demand spikes without delaying delivery times to customers.