New models should be built with more interchangeable parts, so that

number of production lines can be reduced and process can be more

streamlined
Target more corporate buyers by offering special rates and discounts, and
by creating models specific to them
Give incentives to dealers in order to prevent them for selling Chinese
products
Work on improving sales order booking to OTIF delivery ratio by meeting
the target production and logistics
Streamline the process in order to meet the month end demand
Produce adequate quantity of products during the month so that the
month end crunch can be met
Reduce production of slow mover stocks and focus on improving sales of
fast movers and production of spares

Work closely with product design team, material planners and production
schedulers in order to create opportunities for substitution of raw
materials and/or commonality of parts, reducing the total number of SKUs
required and the level of inventories that need to be on the manufacturing
floor at any point in time
Build strong relationship with key suppliers and consolidate supplier base
for a greater leverage
For fast moving stock, focus on long-term contracts or by carrying stock
(or both)
For slow and medium moving stocks, focus on cost reduction by
competition between suppliers

o XYZ Pvt. Ltd., is a public listed Industrial Power Tools Manufacturer

o They have a very good R&D team that keeps churning new products(2-3
new products a year)
o Company operates through all India network of Branches and Dealers for
sales to Retailers & Consumers of Power tools
o The firm buys components in large numbers to lower per unit costs
o Each batch of production takes 5-6 days from start to finish(minimum
5000 pieces per batch)
o Company has long Credit policy on Sales and offers discounts to collect
cash from Dealers
o Company is heavily dependent on Working Capital
o Company has already utilized a high share of available Working Capital
and does not have enough collaterals for additional working capital
o Profitability has taken a toss; so has operating cash flows
 Qualified managers should be recruited for each functional division of
company
Marketing department should try to identify and cater to needs of midsize
customers who are often the most profitable.