Agrify Corporation (NASDAQ: AGFY) is actively taking steps to better align its resources and growth plan with the current operating environment, measures that the company believes could put it in a position to be cash flow positive by the end of 2023.
Agrify has reduced its manufacturing and production costs through more effective supplier agreements, volume discounts driven by increased purchasing power, and less of a reliance on contract manufacturers. Additionally, the company implemented a new enterprise resource planning system toward the end of 2022 and now has better visibility into its supply chain and inventory needs, allowing those needs to be better aligned with near-term revenue expectations. Agrify has also been able to simplify its organizational structure and embark on a strategic consolidation of its offices and facilities.
Agrify believes that these improvements could result in up to $7 million in cost savings during 2023, and the company anticipates that it may be able to accrue more savings as the year progresses.
Enhanced Sales and Growth Initiatives
The company is currently focused on growing …