Case Study: Leverage Data Complexity for Margin Growth
Are You Leveraging Data to Unlock Your Full Potential?
We harnessed complex data to uncover margin decline, inform profitable pricing strategies, and implement solutions that generated 2% profit growth for a rigid packaging manufacturer.
The Challenge
A billion-dollar rigid and flexible packaging manufacturer was facing:
- Significant cost volatility with limited understanding of where or why specifically it was occurring
- Declining margins across most of the business
- Growth through acquisitions resulting in decentralized, inconsistent practices and data capture across 3 ERPs, 100k SKUs, and 300 reps with pricing authority
The Solution
INSIGHT began by creating a never-seen-before centralized, single source of data truth. Then, we refined customer and product segmentation into four main categories to establish a baseline for pricing and cost management. We implemented differentiated price adjustments and operationalized processes to minimize price outliers. Our robust analytics provided granular visibility into hundreds of thousands of purchase orders across multiple business units, enabling more effective cost and purchasing decisions. Additionally, we developed a process to ensure timely and effective price adjustments ongoing.
