Margin Optimization & Cost-to-Serve Control for Pharmaceutical Distribution
A PE-backed pharmaceutical distributor was losing margin it couldn't see — roughly 20% of SKUs were unprofitable on a fully burdened basis, with no data to surface it. KINETIQ unified sourcing, inventory, distribution, and sales data into a single control tower with profitability analytics and ML-based forecasting. Expected impact: $5–9M in EBITDA growth over one to three years.
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.
Let's show you where you're losing value and what it looks like when you close that gap.
Get Started Now
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.