The ClientSamson Manufacturing Corporation is a mid-sized manufacturing company currently based in Keene, New Hampshire whose clients include US and international gun manufacturers as well as government military contractors and purchasers. Samson Manufacturing Corporation was founded in 1994 and has been recognized for almost 20 years as a high-quality parts supplier to the US military and other private arms manufacturers. At the time of engagement, Samson Manufacturing Corporation had 39 employees and roughly $6.8M in gross annual revenues.
The ChallengesPrior to engaging Amelioration Incorporated, Samson Manufacturing Corporation had experienced dramatic growth. In fact, over the previous year the number of orders for the company’s products had nearly doubled. While many may deem this “a good problem to have”, the sudden growth in demand left Samson with several challenges:
- More than 6,000 orders in backlog, worth roughly $6.4M in additional revenue
- Roughly $200K/year in cancellations due to lengthy production and delivery timeframes
- A backlog amortization rate that would have taken more than 4 years to clear the current backlog and resulted in an estimated $410K in additional cancellation losses.