ADA helped leading ecommerce brand enhance profitability and cashflow through improved inventory liquidation process

The customer is a leading player in the kidswear e-commerce sector, focused on optimising its inventory liquidation strategy to improve cash flow while maintaining healthy profit margins.

The client faced significant challenges with its monthly financial reporting due to time-consuming manual data verification in Microsoft Dynamics 365 (D365) and the absence of a unified source of financial data. These manual processes required more than 40 hours each month and led to delays in regulatory reporting, resulting in compliance issues and financial penalties.

ADA developed a data-driven inventory liquidation system powered by price elasticity modelling. The solution combined factor mapping, automated data extraction, and hypothesis testing to identify optimal discounting strategies that maximised inventory sell-through while protecting profitability.

The new approach enabled the client to clear excess inventory worth ₹15 crore within two months while maintaining a 10% contribution margin on liquidated products.