NAPA Case Highlights

PMI Case Highlights: NAPA Auto Parts Distributor


 “How do we get our financial and non-financial people excited about their individual role, and how that role can have an impact on the profitability and cash flow of the company?”


Results


“It just blew me away that they (our Performance Management Group members) were grasping that – ‘Hey, we can set our own course here!’ ” – Ken Thengval, CFO


  • 13 consecutive quarters of profitability after years of peaks and valleys
  • Improved operating cashflow by improving inventory accuracy from near 50% to over 90%
  • Significant reduction in A/R aging (to 65-75 days from 88-92 days)
  • Reduced product “SKU’s” by eliminating redundant or unprofitable products
  • Increased cash flow through both A/R and A/P
  • Improved customer interaction / better pricing resulted became sole supplier to local county
  • Healthy books & cash flow improved forecasting – facilitating additional financing
  • Increased cash flow enabled growth through competitive acquisitions
  • Purchasing became a strategic player, planning 3 months in advance


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