Optimizing Product Portfolio to Maximize Margin and Velocity

An engineering product sales company struggled with inefficiencies in order processing and inventory management. By implementing automation tools integrated with their existing ERP system, we streamlined repetitive tasks, reduced manual errors, and improved real-time data visibility. This transformation led to a 40% faster order fulfillment rate, improved customer satisfaction, and freed up staff to focus on high-value activities, driving scalable and efficient growth.

Problem/ Challenge

The brand had strong top-line growth but shrinking profits. 40% of SKUs were underperforming in both margin and turnover.

Pain Point:

Problem/Challenge

The brand had strong top-line growth but shrinking profits. 40% of SKUs were underperforming in both margin and turnover.

High margin products moved too slowly.

Low margin products were consuming inventory space and ad dollars.

Thanks to their strategic guidance, we achieved sustainable growth by balancing selective hiring with cost-saving outsourcing, ensuring financial stability while maintaining our competitive edge in the global market.

Brad Taylor

Founder

Solutions

Integration of Technology: Utilized a combination of Google Sheets, Zapier, Finale Inventory, and QuickBooks to automate the entire process from quotation approval to commission calculation.

SKU-Level Margin & Turnover Analysis: Conducted a full contribution margin and velocity review across the entire catalogue.
Zombie SKU Identification: Flagged unprofitable, low-turnover SKUs that offered minimal contribution to margin.
SKU Bundling Strategy: Recommended pairing slow-moving items with bestsellers to move stagnant inventory and recover space.
Ad Spend Reallocation:Focused performance marketing budget exclusively on the top 20% most profitable SKUs by volume and margin.

Download the comprehensive case study to delve deeper into the data-driven decisions and gain valuable insights into the strategies and solutions that drove success.

Results

The restructuring and outsourcing strategy bore immediate and tangible benefits

32% Gross Margin Increase in 60 Days

By analysing SKU-level profitability and refocusing efforts on high-margin, high-velocity products, the brand was able to eliminate wasteful spending and improve product mix. Underperforming SKUs were either removed or restructured, while marketing dollars were reallocated to promote items that generated the most profit per unit sold. These deliberate changes had a direct impact on the bottom line—within just two months, the brand saw a substantial 32% uplift in gross margin, proving that smarter product curation and marketing alignment could drive profitability even without additional revenue.

SKU Count Reduced from 140 to 90 (No Revenue Loss)

Despite cutting nearly 36% of the product catalogue, the brand’s revenue remained stable. This was possible because the SKUs eliminated were contributing little to overall sales while adding operational complexity and cost. With a leaner catalogue, the team could focus more effectively on marketing and restocking the highest-performing items. The reduction in SKU count not only simplified inventory management but also improved warehouse efficiency, vendor coordination, and forecasting accuracy—without sacrificing the top-line performance.

Cash Conversion Cycle Improved by 20 Days

Eliminating slow-moving products and focusing on those with faster turnover significantly improved the speed at which cash moved through the business. With fewer funds tied up in stagnant inventory, the company was able to reinvest capital more quickly. The bundling strategy also helped move fewer desirable products off the shelves, further speeding up inventory turnover. The net result was a 20-day improvement in the cash conversion cycle—meaning the brand got paid faster and could make reinvestment decisions more swiftly and confidently.

Product Profitability Clarity for the Team

Prior to this engagement, the team lacked clear insights into which products were truly contributing to the bottom line. The new SKU-level dashboards and performance tracking gave every department—marketing, purchasing, operations—visibility into what was working and what was not. This data transparency enabled better cross-functional alignment and sharper decision-making. Marketing focused on promoting winners, purchasing optimized restocks, and operations aligned fulfilment efforts with high-velocity SKUs, resulting in a more agile and profit-conscious organization.

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