Consolidation and simplification for better business understanding

CASE STUDY

Consolidation and simplification for better business understanding

A client who owns and operates pharmacies at six locations across NSW came to us seeking assistance in understanding how their business was performing.

Complexities in the business structure was hindering their ability to get accurate data for the overall group or compare the individual pharmacies, especially as across the nine entities involved (five trading and four service) different accounting firms and accounting software packages were in play.

Whilst the client had a great internal bookkeeper, it was difficult and onerous to prepare a monthly reporting pack. Manually consolidating nine separate entities in Excel could take the bookkeeper anywhere up to 15 hours every month to complete. Plus if changes were required then the process would start again.

Clearly this situation was in desperate need of drastic simplification to help the client understand their financial position, let alone plan effectively for the future.

Pitcher Partners set about creating a series of custom dashboards that consolidated the nine pharmacy entities, providing the client with the ability to analyse the entire group’s monthly performance at the click of a button.

The Vantage reports provide snapshots of the group as a whole, as well as a detailed location dashboard that groups trading and service entities at individual locations.

This has afforded the directors great insight on each and all of their stores performance.

Some of the key comparison items Pitcher Partners implemented were:

  • Comparisons between stores against budget, YTD, prior month, month last year
  • Comparisons between stores based on sales per square metre
  • Comparisons between stores based on customer basket size
  • Comparisons between stores based on average dispensary transaction value.

The report was built to allow for future customisations that the client requires, and additional stores and products to be added as the business grows. A direct integration to the nine separate entity files also reduced any potential rework required.

The report has allowed a whole of group view that was previously unavailable to the client. Pitcher Partners now constantly and effectively monitors the client’s KPIs and debt covenants and where appropriate, resolve any issues before they get out of control.