XPD Case Studies

Case Study 1 - Electrical Lighting Manufacturer

BACKGROUND

XPD was instructed by Lloyds Development Capital (LDC) to review and assist with the disposal of dated, slow moving and obsolete stock with a value in excess of £1.5m. The client had been offered £15k for the stock prior to the appointment of XPD.

The client had 6 months to consolidate the storage and warehouse facilities from 2 warehouses to 1. The stock holding needed to be converted into cash and in doing so obtain an acceptable rate of return.

Constraints:

The client did not want to release this stock in a bulk sale into the market as this could indicate that the business was in financial difficulty. XPD was provided with an extensive list of customers not to be approached. The brief was to not disturb or unsettle the existing wholesaler base in the UK outside of a 4 week sales drive to sell the target stock to the existing customer base.

Methodology and Resolution:

XPD developed a phased multi channel approach to market with a structured approach

Uplifted stock from client and relocated the stock to an XPD warehouse, allowing the client to consolidate from two warehouses into one
4 week internal sales promotion targeting existing customers and using existing customer services team
6 week warehouse clearance sale - marquee erected at the redundant warehouse and promoted via local press, radio and online
4 month aggressive sale via XPD's online auction partner
Developed overseas customer base accounting for 30% of all sales and a significant base of UK bulk buyers

Outcome:

Met the deadline to facilitate the warehouse consolidation
Cleared the stock
Provided a cash income in excess of £500k net after costs
No political impact on the client from the existing wholesaler base
Client's subsequent recommendation has lead to additional clients for XPD

Case Study 2 - Overseas manufacturer of Kitchen cabinets for major UK Retailer in administration

BACKGOUND:

Following the demise of a leading national kitchen/furniture retailer XPD approached the overseas supplier of kitchen cabinets with an outline proposal to generate cash from the £2m+ redundant stock.

Methodology and Resolution:

XPD visited the client in Italy to scope the project :

Full stock profile assessment with costing and specification prepared
Set up a planned stock movement overland from Italy to UK
Selected the appropriate channels to sell through the goods - online auction site, UK based telesales team and eBay store
Built base of bidders and buyers securing significant bulk sales
Provide the client with weekly status reports, reflecting volumes sold, revenue generated and developments in sales strategy
Payment to client made every 10 days following the close of the auction

Outcome:

Stock clearing on schedule
Strong return versus cost being delivered
Additional target stock now being sold for the client by XPD
Client has recommended XPD to other Italian manufacturers

Other Clients:

XPD has at present a further 17 clients and is continuing to expand its base across other consultancy disciplines such as the preparation of businesses for sale, finding suitable financing solutions, non-executive roles and business process support and change.