Optimizing Product Portfolio to Maximize Margin and Velocity

The brand had strong top-line growth but shrinking profits, with 40% of its SKUs underperforming on both margin and turnover. A SKU-level profitability review cut the catalogue from 140 to 90 products with no revenue loss, raised gross margin by 32% in 60 days, and shortened the cash conversion cycle by 20 days.

2246 +

Happy Clients

12 +

Years in industry

150 +

Strong team

Problem/ Challenge

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

Pain Point:

Solutions

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.

Results

A leaner catalogue delivered higher margins and faster cash conversion with no revenue loss

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 fulfillment efforts with high-velocity SKUs, resulting in a more agile and profit-conscious organization.

Want To See How We Can Help Your Business?

Explore our case studies and discover proven results. Schedule a meeting to discuss how we can achieve success together!

Case Studies

Strategic Hiring and Growth Planning for a Global Retailer

A global retailer faced uncertainty in planning team expansion despite a strong financial reserve. (read more)

Revolutionizing Finance Operations to Unlock Effici..

A business burdened by an inefficient finance department transformed operations by outsourcing (read more)

Navigating Financial Complexity to Secure Inve..

After a thorough financial overhaul, including uncovering $4 million in recoverable assets, the co (read more)

Achieving Rapid Growth by Overcoming Debt Challeng..

By restructuring high-cost debts, cutting operational expenses, and optimizing cash flow, the co (read more)

Strategic Cost Reduction Elevates Net Profitability

By optimizing resources, automating roles, and reducing overhead costs, we helped the client..

Empowering Business Confidence Through Precision.

The business duo regained financial clarity by adopting accrual accounting and..

Saving a Business Through Strategic Purchasing Overhaul

By overhauling the purchasing process with a data-driven, collaborative approach, the company..

Streamlining Operations with Automation in Engineeringt..

Automation reduced manual labor by 80%, cutting invoice creation and commission calcul..