Less Inventory, More Cash
Since pulling out of China, Campagna notes that the company's lead time to the customer hasn't changed. Peerless sells to OEMS, dealers and commercial installers, who typically demand same-day or next-day shipment -- "two days at the most."
"They don't stock anything," Campagna says. "And if we don't have it, they just move on to our competitors."
What has changed, though, is the amount of inventory that Peerless now carries.
"Our ability to react and not have one, two, three, four months' worth of inventory because our stuff is being made halfway across the world has been a major savings," Campagna explains. "We've been able to bring our inventory down 20%. So that just frees up 20% more cash."
