Background
A mid-sized Estonian wholesale chain used software that did not allow for understanding sales turnover and margins by customers and product groups. This made it impossible to manage profitability effectively, as it was unclear which customers were unprofitable and how to improve their profitability.
Our Solution
We created a connected data warehouse for the wholesale chain, consolidating all sales-related data from various sources. The data was cleaned and integrated into a logical whole. Key steps included:
- Using Microsoft Office solutions to create department-specific summary and detailed views, as well as reports showing real-time sales trends, margins, purchasing behavior, and sales plan fulfillment.
- Developing a customer- and product-segment-based analysis model to enable the client to control and manage sales and cash flow decisions.
Results
- The wholesale chain immediately increased profitability by gaining a clear understanding and precise information on the profitability of similar customers.
- Unprofitable customers were turned profitable, and new profitability metrics like margin and contribution were introduced.
- Customers were offered tailored product assortments and pricing based on data and objectives.
- Sales management was aligned with region- and sales-representative-specific goals, achieving consistent margins across customer segments.
- Management gained access to reporting tools that allowed them to use information anytime, from any device.
Why Is This Important?
This project demonstrates how proper data processing can transform raw data into a business-changing tool. Simple visuals, industry-specific models, and accurate forecasts enable a wholesale chain to focus on increasing profitability and following trends rather than searching, copying, and formatting data.