Situation

PolySource is a resin distributor with a global supply network using the latest logistics and support technology, to support a growing product and customer base.

Challenge

PolySource successfully implemented a large ERP with robust data capture and reporting options. Margins remained steady but working capital was increasing and cash cycles were lengthening. The ERP’s reporting solutions did not provide insight into the products/customers driving excess working capital needs.

Sales reps were making decisions without a clear picture of products/customers truly driving value for the business due to out-of-the-box reporting limitations.

Action

01 | Connected to ERP data and ran through BUCS proprietary insights data abstraction layer.

02 | Calculated gross margin and working capital at a customer, item, and vendor level.

03 | Provided a ‘what-if’ tool to see the impact of purchasing and selling decisions on gross margin/working capital and economic value add.

Results

By creating a model to explore potential outcomes, PolySource established a deeper understanding of customer, item, and vendor impact, allowing them to make decisions on economic value add.