Order & Fair Share Analysis
Who: B2B Distributor – A Fortune 500® full-service provider of packaging, JanSan and hygiene products with more than 125 distribution centers across North America.
Business Problem Identify missed opportunities (customers, orders, and revenue) caused by limitations of order size (order minimums)
Precision Action: Benchmarked the client’s typical order size and profile and compared to that of the total JanSan and Packaging Market; Performed k-means clustering to identify statistically significant order breakouts; Quantified the revenue opportunity for increasing order size minimums
- Reconciling differences in pricing, discounts, rebates, contracts, incentive programs, and other factors to arrive at net-net cost differences
- Using customer overlap analysis to identify shared and non-shared customers and align on greatest growth opportunities
- Quantifying product and vendor overlap to support critical cost negotiations with suppliers
- Quantifying opportunities for inventory consolidation between warehouses, reducing working capital, increasing service rates and reducing stockouts
Outcome:
$13M Synergy Opportunity
Our insights enabled the distributor to make informed supplier decisions post-close to achieve $13M in cost synergy opportunity.
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