top of page

The Fastest Revenue I Found Was Already Inside the Business

Sep 22
3 min read

The fastest revenue I have ever found did not come from a new customer. It came from a reporting system, which is close to the least interesting sentence I could write, so let me be specific about what actually happened.

I joined Motosel Industrial Group in Canada as a contract CMO. Industrial lubricants and related products, around $20M in annual revenue, real customers, real products, and no reliable way for the business to see itself. Everyone had an opinion about which lines made money. Nobody could show it on a page.

We implemented an SAP-based reporting and analysis system across the group, and I trained the team to pull their own numbers out of it instead of waiting for someone to send them a spreadsheet. The training mattered more than the software. A reporting system that nobody knows how to question is just a slower way to be wrong.

What surfaced over the following months was not dramatic. It was ordinary and expensive. Lead times longer than anyone believed they were. Inventory data moving through processing slowly enough that decisions were being made against positions that had already changed. Selling effort concentrated on the products that were easiest to sell rather than the ones that carried margin. And a group of SKUs losing money on every unit, quietly, for years, because no one person had ever seen the full landed cost sitting next to the actual selling price in one view.

We worked through them in the order the data ranked them. Lead time first. Then the inventory processing speed. Then the margin mix, which in practice meant telling the sales team which products to lead with and showing them why, with the numbers in front of them rather than in an email. The loss-making lines were retired and replaced with higher-value alternatives, in some cases through a packaging change rather than a new product. Forecasting accuracy improved by about 40 percent across that period.

The revenue that came out of the work was $3.2M.

I am careful with that figure, because attribution is where claims like this usually fall apart. I took the baseline at the point the optimisation started, recalculated at year end, then removed the revenue attributable to new accounts and the revenue attributable to a separate business inside the group. What remained was the process delta and nothing else. It is a smaller number than I could have claimed. It is also one I can walk through line by line, which is the only kind worth putting in front of an owner.

The mechanism is not complicated. A distribution business is a portfolio of small decisions repeated thousands of times a year: what to stock, what to push, what to price, what to quietly stop selling. Each one is cheap to get wrong and almost impossible to notice on its own. They never arrive as a crisis. They show up as a company that works hard, wins its share of the deals it chases, and earns less than the effort deserves.

Visibility does not create revenue. It stops the loss. That distinction is worth holding onto, because it changes who you hire and what you ask them to do first. When margin is soft, the instinct is to go find more demand. More accounts, more territory, a bigger marketing number. Sometimes that is right. Often the demand is already there and the business is giving back its margin in places nobody is looking at, one order at a time.

There is a second lesson underneath the first, and it is about people rather than systems. Once the team could see the numbers themselves, the arguments changed. They stopped being about whose opinion carried more weight and started being about what the data showed and what to do next. That shift is worth more than any single fix we made that year, because it kept working after I left.

So when growth goes flat, I would hold off on the question of which market to enter next. Ask the duller one first. Can you say, this week, which of your products and which of your customers actually make you money? Most owners I meet believe they can. Many are describing a business that existed two years ago.

 
 
 

Comments


bottom of page