FINANCE TRANSFORMATION

Finance Focus: The 20% That Drives Profit

How a retail chain discovered that 20% of SKUs generated 80% of profit - and what they did about it

By applying Pareto analysis to their 50,000 SKU catalog, we helped identify the products that actually mattered and transformed their financial performance.

+100%
Inventory Turns
4x/year8x/year
+28%
Gross Margin
32%41%
-87%
Hero Product Stockouts
15%2%
+49%
Net Profit
$45M$67M

The Challenge

Lost in the Long Tail

With 50,000 SKUs across 200 stores, our client couldn't see the forest for the trees. Inventory costs were soaring, margins were shrinking, and decision-making was paralyzed by data overload.

50,000 SKUs creating inventory chaos
Working capital tied up in slow-moving items
Gross margin declined 8% over 2 years
Store managers overwhelmed by choices
Critical items often out of stock

The UTLYZE Solution

The Profitable Core

We identified the 10,000 SKUs generating 80% of profit and built the entire operation around optimizing these items while intelligently managing the rest.

Deep SKU profitability analysis
Identified 10,000 hero products
Optimized inventory for top performers
Created tiered management strategies
Built real-time profitability dashboards

Transformation Results

Inventory Turns

+100%
Before:4x/year
After:8x/year

Gross Margin

+28%
Before:32%
After:41%

Hero Product Stockouts

-87%
Before:15%
After:2%

Net Profit

+49%
Before:$45M
After:$67M
"
We were trying to be everything to everyone. UTLYZE helped us focus on being excellent at what actually drives our business.
Jennifer Park
CFO, National Retail Chain

The UTLYZE Methodology

Measure & Optimize
1Analyzed 2 years of transaction data
2Calculated true profitability by SKU
3Identified the vital few products
4Optimized operations around winners
5Created feedback loops for continuous improvement

Ready to Find Your 20%?

Let's identify the critical few changes that will transform your finance operations

Your Next Steps:

Analyze your product/service profitability
Identify your critical value drivers
Build strategies to optimize the vital few
Watch your margins transform