Reengineering Profitability in Consumer Tech

Challenge

A $50 million consumer tech peripherals line was burdened with excess inventory, slow turns, and low contribution margins. Our goals were to:

• Build a cross-functional team and implement repeatable processes for sustainable profitability.

• Eliminate underperforming products and optimize inventory.

• Launch innovative, higher-margin products.

Approach

1. Shifted from a reactive to a team-driven inventory strategy The company had scaled rapidly, but inventory and go-to-market planning had not kept pace. We needed a coordinated team approach to meet the demands of the new sales volume. We:

   • Formed a unified team spanning Product Management, Finance, Sales, and Supply Chain.

   • Launched monthly cross-functional reviews to align on demand forecasts and inventory.
     

2. Implemented robust planning methodologies We introduced structured, data-driven decision-making across product and inventory management. We:

   • Used regression analysis to forecast demand for each SKU.

   • Conducted regular roadmap reviews to decide when to sunset or launch products.

   • Collaborated with Sales to capture frontline insights on customer needs and emerging trends.
     

3. Sunset 30% of the product line

   • We identified low-performing SKUs and made tough calls: whether to revamp, replace, or retire.

   • Partnered closely with Finance and Supply Chain to adjust production and manage closeouts or write-offs.
     

4.     Increased contribution margins from 45% to 65% Our margin uplift stemmed from better product mix and tighter control. We:

• Conducted service blueprinting to identify operational friction points.

• Eliminated cost sinks such as inefficient reordering and difficult account management experiences.
  

5.     Launched more innovative, high-performing products

• We collaborated with IDEO and Patria Design to develop a pipeline of cutting-edge products with stronger market appeal.

• Introduced two patented, high-margin products as part of the refresh.
  

Results

• Boosted contribution margin from 45% to 65% on a $50M product line.

• Improved morale and feedback from the Sales organization.

• Reduced future inventory risk through better planning and controls.

• Introduced patented, top-selling new products.
  

What This Means for You If you're preparing for economic uncertainty or scaling up and need tighter controls, we can help. From cross-functional planning and margin expansion to launching standout products, our approach can help you run leaner, smarter, and more profitably.