Research
Execution leakage
We modeled a $100M distributor. 300–700 bps of EBITDA leave through the desk. None of it is a line item.
Bruce research
Your house
Same model. Your revenue.
EBITDA impact
334 bps
$3.3M
Current EBITDA
10.0%
$10.0M
New EBITDA
13.3%
$13.3M
Working capital
$2.8M
From inventory turns
Area
Now
Target
bps
Value
Quote response and follow-up
EBITDA 35.8 bps
$358K
Pricing and discount discipline
EBITDA 40.0 bps
$400K
Inventory execution and turns
EBITDA 40.0 bps
$400K
Rep productivity
EBITDA 15.0 bps
$150K
Stockouts
EBITDA 48.0 bps
$480K
Cross-sell and expansion
EBITDA 60.0 bps
$600K
Churn and retention
EBITDA 30.0 bps
$300K
Order errors
EBITDA 41.7 bps
$417K
Credit and collections
EBITDA 8.9 bps
$89K
Territory coverage
EBITDA 14.3 bps
$143K
We mapped ten places execution leaves money in a distribution house — quotes, pricing, inventory, the truck. The ranges are on $100M revenue. They do not add. You do not capture all of them at once.
The leak never had a line. That is why most P&Ls miss it.
What we found
Quote response and follow-up
60–100 bps
Missed RFQs. Quotes that go out Thursday. Nobody called back. We put a 3–5% win-rate lift on $100M at $3–5M of revenue. Most of it falls through.
Pricing and discount discipline
75–150 bps
The rep takes two points off to get the PO. Across the book that is $750k to $1.5M, almost all EBITDA. In the houses we modeled, this is usually the largest one you can actually touch.
Inventory execution and turns
50–100 bps
Overstock, dead stock, the wrong branch. Write-downs and emergency freight show up on the P&L. The larger number we see is cash: $5–8M if turns move.
Rep productivity
30–60 bps
They re-key the quote and chase follow-up by hand. At $120k loaded, 15–30% more time on the customer is margin. You do not hire for it.
Stockouts
40–70 bps
The line is out. The quote dies. The demand was real. It left with whoever had the alternate.
Cross-sell and expansion
30–60 bps
The next line is already on the invoice history. It is not on this quote.
Churn and retention
35–70 bps
Dormant accounts sit until they are gone. Replacing them costs more than the call.
Order errors
25–50 bps
Wrong item, wrong qty, wrong dock. Then returns, rework, extra freight.
Credit and collections
20–40 bps
Aging sits. DSO and write-offs are the same problem with a delay. The high-risk accounts are knowable.
Territory coverage
25–50 bps
House accounts the truck does not see. High-value stops that never made the windshield card.
We put a conservative house at $3–5M. A real overhaul is $5–7M, plus $4–7M in working capital. Past 700 bps we are looking at a different company, not a tighter desk.