Sample Answer
At a previous small manufacturing firm I noticed gross margin had slipped from 28% to 21% over six months while sales volume stayed flat. I pulled the P&L, cost-of-goods-sold detail, and vendor invoices, then built a month-by-month cost driver model showing labor overtime and expedited freight as the main drivers—overtime rose 42% and expedited freight costs added $36K in three months. I presented a scenario analysis to the operations manager comparing hiring one full-time technician plus regular freight vs. continued overtime/expedites. We hired the technician, standardized schedules, and negotiated a freight SLA. Within two months margins recovered to 26% and monthly freight dropped $11K, improving cash flow and reducing cycle chaos.
Keywords
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