Profitability Analysis and Modelling for an Award-Winning Local Food Distribution Company
Project scope
Categories
Data analysis Operations Project management Product or service launch Sales strategySkills
business and analytical problem framing model development deployment and documentation business analytics storytelling and data visualization data analysisWe are looking for a full profitability analysis of our product offering in order for us to make better decisions to ensure the long-term financial viability and sustainability of our company. There are a few factors at play here:
Known factors:
- cost of goods sold
- selling price
- gross margin
- operating expenses
- rough overall cost of procurement (not by product line or sku)
- product velocity
- product waste
- much more
Unknown factors:
- inventory carrying cost
- cost of procurement by product line (we have a large range of JIT products we source ourselves with our own fleet)
- profitability by sku/product line
- profitability by season (operating costs remain largely static, sales and available product vary greatly by season thus creating big swings in profitability)
- KPIs we should be closely monitoring, measuring and maintaining the correct ratios, values etc.
- others we don't know yet
From this project we would be looking for an in depth analysis of our profitability by sku/product line/procurement method and any recommendations that come from this analysis so we can make informed decisions about product pricing, procurement methods, mitigating waste and loss and achieving sustainable profitability.
Other areas of interest to us but likely can't be accomplished in one products include calculating overall customer lifetime value, sales predictions and churn predictions.
About the company
100km Foods is an award winning, certified B Corps, local food distribution company based in Toronto, ON, Canada. Our mission is to establish a viable, dynamic and sustainable local food economy whereby chefs have access to the freshest and best products that Ontario has to offer, and Ontario producers have a dedicated channel for the sales, marketing and distribution of their products at a fair price.