INTERIOR SYSTEMS, INC.: A Business Advisory Success Story

SITUATION

Interior Systems Inc. is a Milwaukee-based Manufacturing Design Company. With the cost of raw materials on the rise, it was critical for this company to look for ways to optimize and to improve efficiency in all areas of their business.

What really attracted their CFO, Bill Stoll, to HNI was the fact that HNI’s cost savings assessment came at no cost to them. Bill knew full well that he needed to reduce expenses, but didn’t have the time or niche knowledge to look at every complex line item in his budget. Our pay-for-performance model allowed him to enlist our help in combing through his spending without adding another expense.

HOW WE CHANGED THE GAME

The problem for CFOs and other financial decision makers isn’t knowing where to save money or understanding how to vet solutions -- they understand all that. The problem is there’s not enough time to turn over every stone and dig for cost savings in every single line item of the budget.

HNI advisors specialize in hunting out potential areas to improve efficiency. We first honed in on their shipping costs, the fifth biggest expense area for Interior Systems. By optimizing the company’s routing guides and leveraging our industry knowledge, we secured the most competitive rates in the market without sacrificing service, resulting in the most affordable cost per shipment. This has resulted in a 30% reduction in shipping costs, totaling $160,000 in annual savings.

Next, HNI’s advisors worked to improve the telecom systems that were in place, negotiating the best rates and plan to meet Interior Systems utilization patterns. This has brought an additional $50,000 in annual savings to the company.

Most CFOs like Bill have bigger things on their plate than becoming the world’s leading expert on operational expense areas like telecomm, shipping, or credit card processing. But by bringing in HNI’s advisors, Bill managed to implement the leanest, most efficient system possible, freeing up the cash flow to help him continue to grow his company.

RESULTS

By analyzing their shipping data [their 5th largest expense] HNI made the process of transporting their goods more efficient and organized.
Shipping optimization resulted in a 30% reduction in costs, saving Interior Systems, Inc. over $160,000 each year.
Savings in telecommunications enhancements have brought $50,000 in additional savings to Interior Systems, Inc.
With leaner, more efficient operating processes, Interior Systems, Inc. has freed up the cash flow necessary to drive further business growth.