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Wholesaler & Manufacturer Challenges: Inventory Processes, Supply Chain Relationships & Distribution Networks (Part 3)

  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
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  Article Summary  
Continuing our discussion of challenges faced by wholesalers and manufacturers, part three addresses inventory process inefficiencies, supply chain relationships, and distribution networks.

Executives at both types of companies frequently see inventory process inefficiencies rippling out to negatively impact margins and profits. Reviewed are a number of these inefficiencies along with ways that an outsourced CFO services firm can help resolve them.

The article looks at supply chain relationships and challenges presented by less-than-favorable contract terms with up-chain, down-chain, and financial partners. Also discussed are distribution networks that can include retailers, selling partner intermediaries, and end user customers.

Manufacturers and wholesaler profitability and cost structures are closely tied to process efficiencies. When considering an outsourced CFO services firm, make sure to look for one with formerly-seated chief financial officers who have deep, hands-on operational expertise in understanding, evaluating and solving the root causes of operational inefficiencies. An outsourced CFO of this nature can offer invaluable assistance in increasing efficiencies and reducing costs - both critical to improving margins, profitability and growth rates.

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