Turn5

Summary

Financial Advisor

Paoli, PA

Turn5 was the industry leader for eCommerce serving the automotive sector focused on Ford Mustangs, Jeep Wranglers and various Pickup trucks. The online portal provided information, videos and product for DIY car enthusiasts. The company was growing exponentially, but profitability and liquidity were challenging.

Turn5 was started in the garage of the owner and had quickly grown into the leader of eCommerce for DIY car enthusiasts. The company had exponential sales growth but was experiencing losses due to new product launches and tight margins. Liquidity was also tight as a result of high inventory and low turns.

Key Challenges

Fast Growth

Tight Margins

Lack of Liquidity

Inexperienced Management Team

Engagement Highlights

Reviewed historical results to identify areas of challenge in a high growth industry.
Met with senior management team to identify areas of concern. Realized that the majority of the management team were family members with little experience outside of Turn5. Worked with team on identifying best practices and improving discipline.
Analyzed inventory levels, fill rates and turns. Determined that the company was focused on 100% fill rates and had set EOQ to insure 6-month supply of inventory. Also determined that the company realized the majority of revenue from 10% of its SKUs and was not focused on bringing down inventory levels of slow movers.
Worked with the company on balancing inventory levels and demand.
The nature of eCommerce allows consumers to shop for the lowest price and commoditize items. Worked with company on private label products that were lower cost and not available from competitors.
Site visit to new distribution facility, met with management team and confirmed that company’s new facility would allow for growth in an efficient pick-pack operation.

Turn5

Summary

Financial Advisor

Key Challenges

Engagement Highlights

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