ADA helped leading ecommerce brand enhance profitability and cashflow through improved inventory liquidation process
One of the leaders in the kidswear ecommerce sector innovated its inventory liquidation strategy to improve cash flow and maintain margins.
The client faced significant challenges with their monthly reporting due to time-consuming manual data verification in Microsoft D365 and the absence of a unified financial data source. This not only demanded 40+ hours monthly but also caused regulatory report delays and fines.
ADA helped to develop a liquidation system that utilized price elasticity modeling, incorporating factor mapping, data extraction, and hypothesis testing to inform discounting strategies.
This new strategy led to significant achievements, including the clearance of excess inventory worth 15 crores in two months while keeping the contribution margin at 10% for liquidated products.
