Crossroads Auto (located in Thomas Crossroads) offers maintenance and repair work on passenger automobiles. They have reached major sales goals this year being better than the competition in employee training and customer service. They use most of our tax and cash flow planning ideas (and come up with quite a few of their own).

Tip

Owner and manager Darrell Whitton noticed that part orders from the floor were being delivered to this administrative office for fulfillment. If the company accountant began to get numerous phone call or other distractions then the shop employees were sitting and waiting for needed parts instead of finishing the automotive work.

In accounting terms, this is known as a build up of WIP (work-in-process) in business we call it a back-up of logjam of work.

Solution

Darrell plugged his laptop into the network from the shop floor. He ordered the parts the instant the service tech needed them.

Results are that the bookkeeper is freed to do their job,parts are there when needed, more work is turned out in a given day, and customers get the job done right without waiting overnight for returned parts etc.

How much cash flow would you generate if your production suddenly increased by 15-20%?

By the way Darrell would be glad to talk to you about the quality work he does. He can be reached at (770) 254-1514.