Fortune 300 Distributor

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CASE STUDY

Fortune 300 Distributor

Medical Surgical

THE CHALLENGE

Managing cost deviations (rebates and SPAs) is extremely complex. With over 200,000 customers, 300,000 SKUs, 10,000s of contracts among 100s of vendors, and with ever changing contract terms and conditions, our client’s process to capture every legitimate deviation was impossible leveraging the client’s legacy systems and processes.

THE SOLUTION

The ProfitOptics SPA Optimizer was originally implemented as an audit vehicle. After a year of success, we were asked to integrate to the client’s ERP system, intercepting and enriching transaction data multiple times per day. System features include: 1) Comprehensive customer matching, 2) Configurable rules engine that allows the system to continually improve, and 3) Interface that enables the client to efficiently and accurately validate proposed opportunities.

THE RESULT

As the rules improve and as the machine learns, so does the pre-approved acceptance of the system, which has evolved from 0% at initial implementation to over 95%. This allows the team to focus their energy on continued logic refinement to expand and grow the current $8M/year yield in net profit.

$8M Annual

Net Profit

  • While I scrutinize every dollar paid to each of our vendors, I’m happy to receive the ProfitOptics invoices because I know for every $1 we pay them, we generate $6 in return.
    CIO

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