Syncho-O LLC

Synch-O Metrics

Putting the Numbers to Work for You

Business divisionsIn the initial phases of your partnership with Synch-O, we’ll determine the stability of your business. Synch-O Metrics analyzes your business as if it were a three-legged stool, with each separate leg representing sales and marketing, finance and accounting, and operations. It helps us identify key performance indicators and profit centers. This analysis often results in the development of more efficient processes that improve the bottom line.

As we work together over time, we’ll continue to use Synch-O Metrics to gauge how well your company is progressing toward the goals we set.

 

Case Study

The Challenge:
  • Developing a marketing model to increase revenue.
  • Managing the volume of inventory and turnover with product purchased overseas.
  • Maintaining the right number of warehouse employees to manage the inflow of orders.
  • Determining the cash requirements necessary to pay for foreign and domestic product on time.
  • Managing accounts receivable to project sales and incoming order volume.
The Solution:

By analyzing the metrics detailed below, developing the direct mail sales model enabled the company to predict the frequency to attract additional clients.  This led to determining at what point the amount of increased orders would require additional warehouse personnel.  The information from accounting enabled the company to manage the cash flow requirements necessary to fuel the engine.

The Results:

After implementing the changes that came from this analysis, the company grew at a rate of 36% annually with a one-year high of 135% while gaining the ability to to project inventory requirements, cash flow, and revenues one year in advance.  The key was monitoring the frequency and number of mailers sent on a monthly basis.

The Details

Sales/Marketing:

Direct mail served as the company’s primary source of sales. The metrics revealed that mailings produced a 2% return with an average order size of $100. 50% of the clients placing their first order, did so again in the 2nd month. 90% of the 50% ordered continuously after month 3.

Operations:

90% of the product was purchased from Asia and had a delivery lead time from order placement of 60 days. The target of 45 days of available inventory had been established, which required turning the inventory 8 times per year. Warehouse workers were able to pick 6 orders and pack 14 orders per hour.

Finance/Accounting:

Payment for product was due upon receipt. Accounts receivable averaged 20 days, 85% of which were credit card payments.