How we recovered 89,000 PLN in one quarter for a window manufacturer
A company from Radom producing PVC windows was losing margin, even though the production hall was working three shifts. The owner saw increasing turnover, but at the end of the month, there was less and less cash for investment. From March to May 2024, Złoty Standard Marketing conducted an audit that revealed specific leaks in the valuation and logistics system.
Where was the money leaking? First diagnosis
In March 2024, we began our work by analyzing the last 612 sales invoices of this manufacturer. We quickly noticed that the company used flat rates for transport that hadn't been updated since October 2021. At that time, fuel cost significantly less, and the operating costs of the fleet of seven Iveco trucks were 34% lower. We check facts, not promises, so we calculated the real cost of every kilometer of the route. It turned out that for deliveries over 150 kilometers from Radom, the company was subsidizing every order by an average of 118 PLN.
The problem wasn't just fuel, but also a lack of route optimization. Drivers often left with half-loads because salespeople promised customers immediate delivery without looking at logistics costs. We count every penny, so the first decision was to introduce a logistics minimum for free transport. Previously, even a single window was sent at the company's expense to a customer in Lublin or Kielce. We changed this in just 12 working days, which immediately stopped the cash outflow from the plant's coffers.
Introducing zone-based delivery rates allowed us to recover 31,240 PLN in the first quarter of cooperation. Customers initially grumbled, but hard data on transport costs convinced them to plan larger bulk orders. Your business must earn, not be a free courier for indecisive recipients. This was the first step to fixing the profitability of the entire plant in Radom.
We check facts, not promises, so we calculated the real cost of every kilometer of the route.
The discount trap and uncontrolled price cuts
The second area we scrutinized was the discount policy applied by the 6-person sales department. We discovered that salespeople had almost unlimited freedom in granting discounts just to close a sale before the end of the month. In April 2024, we analyzed the margin on 14 key products. It turned out that for low-margin products, like utility windows, discounts of 12% caused the transaction to be on the verge of profitability after accounting for storage costs.
Złoty Standard Marketing implemented a new offer calculation system that automatically blocked the possibility of granting a discount greater than 5% without the financial director's approval. We talk straight about money: salespeople had to learn to sell based on product value, not just the lowest price on the market. Thanks to this single change, the average net margin across the entire assortment increased by 3.8 percentage points in just 60 days. This translated into an additional 38,460 PLN in profit that previously stayed in the distributors' pockets.
Analysis also showed that the company's two largest recipients generated 40% of the turnover but accounted for only 6% of the total profit. They were the most demanding and required the most service attention. We made the bold decision to renegotiate contracts with these partners. We showed them our calculations and introduced new terms of cooperation based on loyalty, not just volume. One of them left for the competition, but paradoxically, this improved the company's financial result because production capacity was freed up for more profitable orders.
Freezing cash in the profile warehouse
The third problem diagnosed by our senior analyst, Marek Wiśniewski, was chaos in the component warehouse. The company held aluminum profiles and fittings worth over 450,000 PLN in stock. The average inventory turnover time was 84 days, meaning a huge amount of cash sat idle on the shelves. In May 2024, we introduced a simple Just-In-Time inventory monitoring system, tailored to the capabilities of local component suppliers from the Warsaw and Łódź areas.
We reduced inventory by 22%, which unlocked 19,723 PLN in cash alone, which could be used to pay off leasing installments for new profile welding machines. Your business must earn, and frozen capital in goods gathering dust on shelves is the most common mistake made by medium-sized manufacturing companies in Poland. Instead of taking another working capital loan at the bank, the company financed its current needs from its own recovered funds. This is Złoty Standard Marketing in practice.
Production hall employees also felt the change. Fewer goods in the aisles improved safety and the speed of order picking by 12%. We talk straight about money: time is labor cost, and every minute saved on looking for the right seal in an overcrowded warehouse is a real saving for the owner. In June 2024, packing efficiency increased so much that there was no need to hire two additional people for the summer season, which saved another 14,000 PLN in labor costs.
Frozen capital in inventory is the most common mistake of medium manufacturing companies in Poland.
Results after 90 days: 89,423 PLN in the black
Summarizing three months of our work at the manufacturer in Radom, the result is clear. The total sum of recovered money is exactly 89,423 PLN. This consists of savings on logistics (31,240 PLN), margin improvement thanks to discount discipline (38,460 PLN), and optimization of inventory and labor costs (19,723 PLN). We count every penny, which is why each of these results is documented in monthly reports that the company's management receives by the 5th of each month.
This money didn't come from outer space or magical marketing strategies. It came from hard data and the courage to change old habits. Złoty Standard Marketing doesn't promise miracles; we check facts. If your company sells a lot and you still wonder why you don't have funds for development, you are likely suffering from similar leaks in the system. Our audit is not a theoretical essay; it is a list of specific tasks to be performed.
The company from Radom is now planning to enter the German and Scandinavian markets in 2025. Thanks to organizing their finances in Poland, they now have a solid foundation and a clear head for expansion. We know how to set a business for specific profit because we have been doing it since September 2016. We treat every project like our own wallet. If you want us to count your money and find the missing thousands, we invite you for a consultation at Marszałkowska Street in Warsaw. Your business must earn.
