Our initiative is off to a great start with significant momentum. In Q2, we collaborated with branch warehouse employees and DGMs to identify slow and non-moving inventory. We aim to right-size our inventory quantities, ensuring we have the necessary items while maintaining the appropriate stock levels. We expect to complete data gathering by the end of June, after which we will determine the next steps for reducing aged inventory. We are just weeks away from announcing our Q2 results and identifying the winner of the Q2 belt. Stay tuned for those results! Our combined results show a Q2 reduction goal of $1,681,445, with a current reduction of $1,085,302, leaving us three weeks to achieve our goal. The total reduction for Q1 and Q2 year-to-date stands at $3,354,104.

Fleet Update

We are transitioning our third-party fleet management to Holman, with the transfer of fleet data and information expected to be completed by August 1, 2024. This week, we are finalizing our implementation plan and will provide updates once it is ready for rollout. Our goal is to ensure a smooth transition without disrupting business operations. We are also launching a Fleet Strategy Project in collaboration with D&H, Holman, and WPP, which will take about 6-8 weeks to complete. The objectives of this project include:

• Reducing overall fleet costs while ensuring we have suitable vehicles for our work.
• Correctly forecasting the fleet requires the utilization of factory ordering methods.
• Moving away from dealer stock purchasing.

Our ultimate aim is to develop a best-in-class fleet strategy.