Profitability Analysis and Modelling for an Award-Winning Local Food Distribution Company
We are looking for a full profitability analysis of our product offering in order for us to make better decisions to ensure the long-term financial viability and sustainability of our company. There are a few factors at play here: Known factors: cost of goods sold selling price gross margin operating expenses rough overall cost of procurement (not by product line or sku) product velocity product waste much more Unknown factors: inventory carrying cost cost of procurement by product line (we have a large range of JIT products we source ourselves with our own fleet) profitability by sku/product line profitability by season (operating costs remain largely static, sales and available product vary greatly by season thus creating big swings in profitability) KPIs we should be closely monitoring, measuring and maintaining the correct ratios, values etc. others we don't know yet From this project we would be looking for an in depth analysis of our profitability by sku/product line/procurement method and any recommendations that come from this analysis so we can make informed decisions about product pricing, procurement methods, mitigating waste and loss and achieving sustainable profitability. Other areas of interest to us but likely can't be accomplished in one products include calculating overall customer lifetime value, sales predictions and churn predictions.
Re-imaging the Strategy of an Award-Winning Company
Wholesale food distribution is a high volume, low margin business. In creating 100km Foods, a company that sources directly from and distributes on behalf of Ontario farmers and producers, we entered a very established industry with a very unique and niche offering; Ontario farm identified local food products, harvested-to-order and delivered directly to restaurants, hotels, institutions and independent retailers within 24 hours of harvest. 100km Foods has had a profound impact on the local food economy in Ontario, growing 30-40% year over year since our inception and has forced other competitors to adopt a local food strategy. We differ from most competitors in another major way as well; we drive to and pick up directly from over 80% of our farm partners, adding a significant cost of procurement that is not incurred by most other wholesale distributors. While this allows for our unique competitive advantage, it also adds a significant cost to our operations. Despite this, we still need to remain reasonably price competitive in the wholesale food market, contributing to a relatively low net profit margin. We are looking to find operational efficiencies or tweaks to our operational model to allow for a greater proportion of our gross margin to contribute to our EBITDA. This need is further amplified by our desire to refinance the equity position of our investors into a debt instrument, thereby regaining the equity in our company.
Re-imaging the Strategy of an Award-Winning Company
Wholesale food distribution is a high volume, low margin business. In creating 100km Foods, a company that sources directly from and distributes on behalf of Ontario farmers and producers, we entered a very established industry with a very unique and niche offering; Ontario farm identified local food products, harvested-to-order and delivered directly to restaurants, hotels, institutions and independent retailers within 24 hours of harvest. 100km Foods has had a profound impact on the local food economy in Ontario, growing 30-40% year over year since our inception and has forced other competitors to adopt a local food strategy. We differ from most competitors in another major way as well; we drive to and pick up directly from over 80% of our farm partners, adding a significant cost of procurement that is not incurred by most other wholesale distributors. While this allows for our unique competitive advantage, it also adds a significant cost to our operations. Despite this, we still need to remain reasonably price competitive in the wholesale food market, contributing to a relatively low net profit margin. We are looking to find operational efficiencies or tweaks to our operational model to allow for a greater proportion of our gross margin to contribute to our EBITDA. This need is further amplified by our desire to refinance the equity position of our investors into a debt instrument, thereby regaining the equity in our company.
Re-imaging the Marketing and Social Media Strategy of an Award Winning Food Company
100km Foods Inc® is looking to launch a comprehensive marketing and communications plan for 2019. For the first time in company history, we will have one full-time staff member who will be dedicated marcom personnel. We are looking for assistance planning and executing our marketing initiatives as well as formulating a social media strategy to increase B2B sales and consumer brand awareness. The main project deliverables include: · A comprehensive social media strategy that takes into consideration that our current sales are B2B · An evaluation of our current strategy and its ability to meet our targets for 2019 sales goals · A social media strategy that would concurrently help us grow consumer brand awareness if/when we incorporate B2C opportunities.
Re-imaging the Strategy of an Award-Winning Company
Wholesale food distribution is a high volume, low margin business. In creating 100km Foods, a company that sources directly from and distributes on behalf of Ontario farmers and producers, we entered a very established industry with a very unique and niche offering; Ontario farm identified local food products, harvested-to-order and delivered directly to restaurants, hotels, institutions and independent retailers within 24 hours of harvest. 100km Foods has had a profound impact on the local food economy in Ontario, growing 30-40% year over year since our inception and has forced other competitors to adopt a local food strategy. We differ from most competitors in another major way as well; we drive to and pick up directly from over 80% of our farm partners, adding a significant cost of procurement that is not incurred by most other wholesale distributors. While this allows for our unique competitive advantage, it also adds a significant cost to our operations. Despite this, we still need to remain reasonably price competitive in the wholesale food market, contributing to a relatively low net profit margin. We are looking to find operational efficiencies or tweaks to our operational model to allow for a greater proportion of our gross margin to contribute to our EBITDA. This need is further amplified by our desire to refinance the equity position of our investors into a debt instrument, thereby regaining the equity in our company.