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A Valuable Aid DURING A RECESSION: How E2 Helped Save A Company and Its Customers in an Economic Downturn
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Functions
- Business Operation
Services
- Data Science Services
The Challenge
Custom Production Grinding, a service manufacturer specializing in grinding parts to the correct size and shape, faced a significant challenge during the last economic recession. The company saw business vanish quickly, and CFO Greg Schoepke realized the importance of closely monitoring cash flow. Their customers and vendors were also experiencing financial troubles, which necessitated a coordinated approach to manage payables and receivables. The company needed a solution that could provide a comprehensive overview of their cash flow, including customer payments, net terms, and payroll costs.
About The Customer
Custom Production Grinding is a service manufacturer based in Menomonee Falls, Wisconsin. The company specializes in grinding parts to the correct size and shape, correcting imperfections, and refining the finished piece. They deal with complicated parts and are often chosen by customers for their ability to deliver when other shops fail. The company has a diverse client base, with over 300 customers across a wide range of industries. For the last 25 years, they have focused on diversifying their customer base to avoid over-reliance on a single industry or client.
The Solution
The company utilized the E2 Manufacturing System to manage their cash flow during the economic downturn. The E2 system provided an executive overview that allowed the CFO to quickly analyze their cash flow. The system calculated everything from how quickly customers were paying to what the net terms were, all while inputting payroll costs. This allowed the CFO to see exactly where their cash needed to go at any given time. The system's simple green and red code analysis provided a clear picture of the company's weekly and monthly cash flow, enabling the CFO to work with customers and vendors to adjust payments.
Operational Impact
