The wholesale industry is highly fragmented and competitive, with many firms distributing similar products. Only the companies that maximize inventory turnover and logistics systems can overcome competitive pricing pressures.

Wouch Maloney helps wholesale and distribution clients by providing the timely, accurate financial information needed to continually assess whether their processes and systems are operating at peak efficiency.

Internal Management Reporting Systems

  • Has the company implemented a purchasing policy and procedures employing Min/Max purchasing and safety stocks?
  • Is the company’s inventory properly valued to include those costs incurred to bring products to sell and to determine sales prices?
  • Has management performed a cost-benefit analysis comparing lost purchasing discounts to borrowing costs?

Product and Product Line Profitability Analyses

  • Does you company calculate profit margins by product class, product, customer and sales territory?
  • Has your company analyzed sales by product to determine the top 20% of products that provide 80% of the firm’s sales and gross profits?
  • Has management calculated shipping costs by zones to maximize profits?

Inventory Management and Control Systems

  • Does management calculate inventory turnover by product class and products to reduce inventory carrying costs and maximize cash flows?
  • Does the warehousing storage system reduce time to complete order fulfillment?
  • Has the company implemented cycle counts to reduce inventory losses and improve perpetual reporting?

Financial Reporting

  • Does the company’s reporting system provide management with current and timely financial data including product class and product financial statements?