Case Study: Boosting Profitability & Streamlining Operations for a Skincare E-commerce Brand
Client Overview
A fast-growing skincare brand selling on Amazon and Shopify. They source ingredients and packaging from China, manufacture in the U.S., and partner with a U.S.-based 3PL for fulfillment.
Challenges
- Lack of Financial Visibility – The client struggled with cash flow management, profitability tracking, and high operational costs.
- Inventory Management Issues – Overstocking and stockouts led to lost sales and increased storage fees.
- Inefficient Supply Chain – Lead time inconsistencies and high freight costs impacted fulfillment speed and customer satisfaction.
- Scaling Pains – The brand was growing but lacked data-driven decision-making for expansion.
Actions Taken
Implemented Robust Bookkeeping & FP&A
- Provided real-time financial reporting and profit margin analysis.
- Developed a cash flow forecasting model to prevent shortages.
- Identified cost-saving opportunities in COGS and fulfillment expenses.
Optimized Inventory Management
- Set up demand forecasting based on historical sales and seasonality trends.
- Reduced overstocking by aligning procurement with sales data.
- Improved reorder processes to maintain optimal stock levels.
Streamlined Supply Chain
- Negotiated better shipping rates and lead times with Chinese suppliers.
- Implemented tracking systems to improve visibility on incoming inventory.
- Reduced 3PL storage costs by optimizing shipment frequency and warehouse space utilization.
Enhanced Profitability & Scalability
- Provided SKU-level profitability insights to focus on high-margin products.
- Improved pricing strategies for better profit margins.
- Created financial roadmaps to support sustainable business growth.
Results
📈 30% Increase in Profit Margins – Lowered COGS, reduced unnecessary expenses, and optimized pricing.
📦 20% Reduction in Stockouts & Overstocking – Improved demand planning and streamlined inventory flow.
💰 15% Savings in Supply Chain Costs – Negotiated better rates, optimized shipments, and cut storage fees.
🚀 Scalable Financial & Operational Framework – The business is now equipped with data-driven insights for strategic growth.
Client Feedback
"Working with Allied Consultants transformed our e-commerce operations. We now have full visibility into our finances, inventory, and supply chain. Our profitability has increased, and we finally feel in control of our growth. Highly recommended."
Ammar Melies
www.glomelanin.com
