Overview: Project Herbal is a firm that manufactures personal care products with raw materials purchased from smallholder farmers in Kenya and Tanzania. PES undertook a review of their financial, operational and commercial business aspects as part of the investor readiness preparation process.
Outcome: Review of the organizational structure and identification of key management roles that required beefing up in advance of the investor engagement.
Result: PES assisted in the revamp of the organizational structure based on what was to be delivered under the five-year funding strategy
Product costing: PES noted that the product costing process was leaving money on the table and not versatile enough to capture for variations in raw materials or factor in the extent to which customer discounts could be given.
Result: PES worked with the formulation engineers and finance manager to develop an improved product costing formula that captured the above variations. The formula empowered the sale manager to accurately provide for his margins, especially with bulk purchase incentives
Result: Financial statements and audited accounts were erroneous. PES worked with the finance team and management to correct the way in which information was captured