“I’d rather stand, thanks,” Lizzie said.
Will nodded and dove right in. “I received a report that you requested a shipment we would’ve moved via ocean to instead ship air freight. You may not be aware, but the cost to move this ocean is about $4,000. Instead, since we moved to air freight, it’s costing us over $13,000. I assume this was done in error?”
Lizzie took a deep breath, reminding herself to keep calm and explain clearly. “It was not.”
“There you see!” Carolina snapped triumphantly. “She’s basically admitting that…” Will put up a hand to silence her.
“Can you explain?”
She could try. “Charles, can you tell me what we are using to outlay the purchases, transportation costs, duties, and taxes of the international orders?”
“A line of credit,” Charles answered.
“And the terms?”
“I believe it’s six percent daily from day outlaid.”
Lizzie smiled. She wasn’t certain of the terms before, but had done her calculations with a lower rate, so the savings would be even better than she assumed. “Will, I’m sure you know Pemberley outlays the cost up front to the suppliers. That means we pay them on this line about thirty days, if not longer, before it even arrives in the country. Then, once sold, the customer has thirty days to pay.”
Will looked over to Charles to confirm. Charles nodded. “If we assume the order is a million dollars, that would mean the interest on that shipment would be almost $10,000 if you get the goods turned as soon as they arrive, and each day is about $164. Is my math right on all this, Charles?”
Charles, who was writing it all down, looked up and gave a thumbs-up. Lizzie smiled. Will put his hand to his head, surprised at the discovery. Carolina hadn’t caught on. “So? I don’t see how this justifies shipping it for three times the cost!”
Will connected the dots for her. “The shipment takes seven days versus thirty minimum. The shipment change saves us about $8,500 in interest.”
Carolina crossed her arms. “But the shipment cost nine thousand more, so it’s not offset.”
“No, but that’s just the interest savings on the credit line. Shortening your cash cycle has other benefits as well, not to mention insurance is lower on air freight, it’s more secure, less damages—and that’s just on the standard rate. You could negotiate for lower rates to maximize the savings,” Lizzie added.
“Will, we might even be able to renegotiate our payment terms with the suppliers and the bank. This could be a game-changer,” Charles chimed in, getting excited.
“So what? Can she just spend and make decisions without oversight? She can experiment with our money?!” Carolina was visibly getting upset now; the meeting was obviously not going as she planned. “I checked—this little adjustment wasn’t part of her plan! It’s not even an implication that the supply chain would be changed this way!”
Lizzie was about to speak up to defend herself when there was a knock at the door. Will called out for them to come in, and his secretary opened the door to let Carlota in, who was holding a paper up as if it were a pardon signed by the governor to save her friend from a terrible fate. “Mr. Pemberley,” she said breathlessly. Lizzie wondered if she had run here. “I just got this message from our customer J&N! They say that after receiving the alert that we can fill their order a month early, they’d like to know if this is something we will be implementing moving forward, and if so, they’d make us their preferred provider.They’d triple their business with us, sir!” Carlota slapped the paper in front of him.
Will’s jaw clenched again. Lizzie wanted to saytold ya so, but she refrained from rubbing it in.
Will’s words didn’t sound thrilled like Lizzie expected. He said, “Lizzie, moving forward, please make sure you run deviations from your plan through me.” Lizzie nodded. And with a grumbled thank you, Carlota and she were dismissed.
Lizzie was annoyed again that when she should have received accolades and congratulations, she received a full tribunal. “That was close!” said Carlota, assuming it was her appearance that made the difference.
“What’s important is that it worked,” Lizzie said, and to herself she thought,and that I keep proving that arrogant man wrong
* * *
From the Desk of William Pemberley
Pemberley HQ — Office, 5:00 p.m
Two weeks.
Two weeks without seeing her.
I threw myself into work. Filled every hour. Almost convinced myself I was over it.
I thought I was safe.
Thought distance fixed it.
