I would like to take this opportunity to express our appreciation for the assistance provided by AMS to Losco Inc. over the past few months and particularly the efforts of Moe Aubuchon and Herb Bachelder.
Losco, Inc. is a family business with a long and positive history. We recognized, though, that our company had to redirect its focus on critical performance issues. With the help of your team, we have taken important steps to prepare our company to achieve solid performance. We have:
- Established a structure effective for our organization which has gone a long way to establishing accountability among managers and employees through well-defined job descriptions and a pay-for-performance system.
- Placed our 100% commission sales team in a position to recognize their performance is being watched, with the result that virtually all the sales staff experienced growth in sales for the first quarter 2015 vs. last year.
- Established a Flash Reporting system and Cash Flow Forecast that enables the team to learn to receive a timely snapshot of key performance variables.
- Initiated programs to enhance control over our service/installation labor costs in the furniture segment of the business to assure we recognize and address the real costs of getting our jobs done.
- Focused our attention on the critical inventory position, again especially in our furniture segment so that we have begun to tackle a six figure overstock inventory challenge.
- Just about completed the Predetermined Profit Plan, setting clear goals for revenue and pretax profit (in the range of $13.7 million and $250,000 respectively), a substantial turnaround from last year.
With the continued efforts of our personnel to implement and maintain the programs, we expect this work to yield incremental operating profit to our company of more than $1.9 million over the next three years, a benefit that far exceeds the cost of the program. Our expectations have been met in an efficiently and professionally and I will be happy to recommend the services of your firm and your consulting team to any prospective client.