Direct Refrigeration Sales (“DRS”), founded by Tim Litsch, provides a high quality alternative to OEM replacement parts for the refrigeration industry. One of their primary parts is a gasket that seals a refrigeration unit when closing the door and ensures the contents remain cold and intact inside the unit. DRS products are of such quality that even several OEMs in the food service industry source with DRS for their replacement parts.
In 2016 Tim Litsch wanted to enhance his financial management and reporting. The DRS team was looking to create a platform to communicate the company’s key performance indicators (“KPI”) that drive its financial results. In addition, they wanted to see what needed to be done for the company to extract themselves from financing that was non-traditional but necessary to carry the business forward. The DRS team wanted visibility through a financial model that would tell them what needed to be done to move from non-traditional financing to traditional bank financing at a lower cost.
Trillium Financial’s (“TFI”) part-time CFO leadership services were an ideal fit for developing DRS’s performance metrics. TFI developed a financial dashboard scorecard focusing financial drivers that provide visibility into the profits and cash flow critical to sustained growth of a business. The scorecard offers an “at a glance” view of results. TFI also developed a financial model that provided a road map for the DRS team to see where they were headed with profits, cash flow, and the pay down of debt. The model provided a rolling forecast during the year so that Tim and his team could make financial and operation decisions to achieve their goals.
TFI effectively pulled together the required financial and non-financial data to complete a dashboard scorecard and financial model. Each month TFI met with the DRS team to methodically review results and provide the input and analysis from the scorecard and financial model. From the monthly meetings, the DRS team implemented actions to take on activities that would improve the company’s bottom line results.