Financial advisory for distributors and wholesalers

In distribution, inventory is simply cash wearing different clothes. Turns, mix and fill rate decide whether the business compounds or gets trapped on the shelf.

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Operating model · Distribution

Inventory is cash in different clothing.

What we focus on

The drivers that decide the outcome.

Inventory turns and dead-stock exposure
SKU-level margin and mix
Fill rate and service-level cost
Freight and landed-cost economics
Vendor terms and rebate capture
Warehouse labor productivity
AR cycle and customer concentration
Working-capital capacity for growth

What owners in distribution actually describe.

01

Growth funded entirely by inventory

More SKUs and deeper stock feel like service and read like a cash drain. We separate the inventory that earns from the inventory that sits.

02

Margin decided at the SKU, reported at the total

Blended gross margin hides which lines actually pay for the warehouse. We report at the level where decisions happen.

03

Vendor terms left on the table

Terms, rebates and freight programs are negotiable margin. We quantify them so the conversation is prepared.

Turns
Inventory turns

Cash freed per additional turn.

Fill
Fill rate

Service level priced against carrying cost.

GM$
Margin per SKU group

Which lines fund the operation.

Monthly

Turns by category, margin by SKU group, fill rate, AR aging and cash forecast.

Quarterly

Dead-stock cleanup plan, vendor-term and rebate review, freight cost-to-serve.

Annual

Inventory accounting method review and proactive tax planning for owners.

Questions we hear first.

Can you work at SKU level with our system?

Yes, wherever the data exists. Where it does not, we start at category level and build toward SKU detail.

How do you decide what inventory to cut?

By contribution per dollar of inventory and per unit of warehouse space — not by gut feel about which items sell.

Do you help with lender or line-of-credit conversations?

Yes. Borrowing-base clarity and a credible cash forecast change how lenders price the relationship.

Better financial decisions in distribution start with better information.

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