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Case Studies

Each Nativas Business Modelling project is tailored to the clients needs and diverse parameters of business. Here we present two current case studies.

1. Business Modelling For Revenue & Stock Control

Business Modelling For Revenue & Stock Control

“The Navitas business model eased any concern I had about profitability and gave me the confidence to invest and grow the business further.”

The client serves as an Australian decking company that imports its inventory from offshore resources, in various capacity containers. Each transport vessel offers a configuration, net margin and net cost. In addition to the primary goal of determining minimum monthly sales required for operational viability, the client also wanted to create a process to successfully increase stock reserves in Australia for convenient inventory access when needed.

Results
Navitas’ business modelling study yielded an extensive range of conclusive, tangible results including:

  1. Navitas’ Revenue & Stock Control Model significantly enhanced the business’ strategic planning capabilities
  2. Allowing the business to increase production and operations without financially draining liquid assets
  3. Providing the business principal with the data and insight needed to know that investing an additional $40,000 in the company could yield exponential return on investment
  4. Allowing the business principal to confidently procure international stock orders and stabilise company’s overall environment
  5. Proving that ordering stock in the 12 meter containers rather 6 meter containers could increase net profit by 23% over 3 operational years
  6. Demonstrating that the business modelling process, which cost less than $4,000, successfully streamlined and devised a final strategy that saved the business over $30,000 a year
  7. Showcasing the prospective benefits of continuing to run the organisation compared to closing its doors

 

Our Approach

Clairy – Briefing/Scoping
The client serves as an Australian decking company that imports its inventory from offshore resources, in various capacity containers. Each transport vessel offers a configuration, net margin and net cost. In addition to the primary goal of determining minimum monthly sales required for operational viability, the client also wanted to create a process to successfully increase stock reserves in Australia for convenient inventory access when needed.

Precision – Mapping/Modelling
Throughout the study, Navitas’ consulting team considered and managed a wide range of variables for business modelling success. The first challenge encountered required developing a break-even model to ensure the client had a firm grasp on minimum sales levels needed for sustained operations. Other challenges included calculating increased stock levels, coordination of payment timing, both for containers and stock as well as from customers, and developing a typical stock sales mix that considers both wholesale and retail pricing categories.

Insight – Feedback/Adjustment/Testing
Navitas created a user friendly interactive dashboard that contained half a page of inputs and half a page of outputs. This allowed the business owner to adjust assumptions and instantly see the likely impact on the business. It’s now 2 years post the implementation of this tool and the business owner still uses the model as the central reference point for making strategic decisions.

Insight

“A good business model answers Peter Drucker’s age-old questions: Who is the customer? And what does the customer value?

It also answers the fundamental questions every manager must ask: How do we make money in this business? What is the underlying economic logic that explains how we can deliver value to customers at an appropriate cost?”

Harvard Business Review