Case Study: $3B Distributor Achieves $40M Margin Improvement and 1.5% Sales Lift with Vendavo Profit Analyzer

This $3 Billion distributor transformed from a ‘cost plus’ pricing strategy to a market-cognizant strategy, boosting margins by $40 Million

A Southeast U.S. distributor with roughly $3B in annual revenue, 5,000 employees, 30,000 customers and 20,000 SKUs faced inconsistent pricing: loosely coordinated pricing activities, blanket discounts to all customers regardless of value, multiple unexplained prices for the same SKU, and a significant number of transactions showing negative margins.

They deployed Vendavo Profit Analyzer to gain full visibility into margin-impacting adjustments, repriced products based on competitive activity, centralized pricing operations, and introduced rules to turn historic “gifts” into earned rewards. The changes delivered a 1.5% uplift to the bottom line, automated QA and standardized pricing processes, reduced negative-margin transactions by repricing slow-moving items, and uncovered a $40M pocket margin improvement opportunity.