Although food consumers have seen price inflation in the third quarter of 2010, margins are still under pressure in the fresh produce sector due to the economic environment; increasingly global supply; speculation in the market for foodstuffs that are traded as commodities and exchange rate fluctuations.
Businesses can become focussed on the operational demands of supplying short-life products to a demanding customer base and think less about their financial strategy.
Key areas where Secantor can impact on a food producer’s business include:-
Provide timely, accurate management information laid out so it is easy to interpret and drives decision making. This will capture profitability by customer and by product daily or at least weekly, because margins change quickly in this sector.
Assist management to develop a good structured business plan with financial projections and relevant Key Performance Indicators.
Develop a cashflow forecast covering a 13 week period – used to look forward and actively manage cash.
Review working capital; addressing credit control arrangements and stock holding.
