Practus’ finance and accounting services assisted the retailers specializing in home deliveries to improve the inventory turnover ratio.

Client NameROIIndustryOwnershipManagementNo. of EmployeesSizeProject Duration
Retailers Specializing in Home Deliveries6xE-commercePrivate, PE BackedProfessional200$1 million6 Months

About The Company was a home-delivery-focused e-commerce and call-center retailer. In 2013, a mid-cap PE fund invested in, and Practus was brought in to give visibility on the company’s growth, put up system and process strategies, and provide visibility on the financial position.​

Practus’ Role

  • Setting up the complete finance and accounting process, delegating roles to teams, completing accounting, and directing the function.​
  • For the Finance team, implement performance measurement mechanisms.​
  • Across all locations, standard operating procedures for order to cash and procure to pay have been introduced.​
  • The amount of money spent on online marketing is measured in terms of gross merchandise value (GMV).​
  • Creating a reporting system for investors that includes operational and financial metrics.​
  • Weekly visibility on cash burn and inventory (SKU) movement is required.​

Impact Delivered

  • To determine the amount of leakage, order-by-order/product-by-product collection reconciliation was ensured.​
  • To eliminate cash transactions, set up a payment gateway.​
  • Promotions and cost discounts, as well as non-moving inventory and working capital blockage, were detected. The inventory turnover ratio has improved.​
  • Strategic choices sharpened the emphasis. GMV and online traction increased as a result of outcome-based marketing spending.​
  • Investor reporting days have been shortened by ten days.​