Margin Optimization & Cost-to-Serve Control for Pharmaceutical Distribution
How a PE-Backed Pharma Distributor Found and Fixed Its Margin Problem
The Starting Point
A PE-backed pharmaceutical distribution company with $350M in revenue had no clear visibility into profitability by SKU, customer, or channel. Approximately 20% of SKUs were unprofitable when fully burdening the cost to source, store, and deliver — but without the data to see it, those losses were invisible. The result was margin leakage and poor pricing, sourcing, and operational decisions across the business.
Our Approach
We built an end-to-end financial and operational control tower on Microsoft Fabric, unifying data across sourcing, inventory, distribution, and sales. This enabled profitability analytics by SKU, customer, segment, and channel with near real-time visibility. We layered in automated alerting, decision workflows, and ML-based forecasting to support proactive decision-making going forward.
The Impact
Expected to unlock $5–9M in EBITDA growth over one to three years. Identified and addressed unprofitable SKUs and channels. Improved pricing, sourcing, and distribution decisions. Enabled real-time, data-driven operational and financial decision-making.
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Every week of delayed decisions, manual coordination, and fragmented data has a cost. Let's show you exactly where you're losing value — and what it looks like when you close that gap.