The Challenge
A distributor faced a persistent cash flow problem: sales were heavily concentrated in the last week of each month as dealers pushed to meet targets or take advantage of month-end promotions. The first three weeks of each month saw significantly lower order volumes, creating idle warehouse capacity, uneven logistics loads, and cash flow troughs that complicated credit management and vendor payments.
The client's finance team was spending disproportionate effort managing working capital through these monthly cycles. Suppliers demanded payment on schedule regardless of the distributor's collection timing. The mismatch was a constant source of stress and inefficiency.
The Approach
We analysed the monthly revenue distribution pattern and identified that the concentration was driven by dealer purchasing behaviour, not by underlying demand. End customers needed products throughout the month, but dealers batched their orders. The solution was to create incentives for dealers to order earlier and more frequently throughout the month.
The Solution
We designed and built a flash sale module within the B2B commerce platform:
1. Time-limited promotional offers available exclusively on the digital platform during the first three weeks of each month
2. Dynamic pricing algorithms that offered targeted discounts on slow-moving or overstocked inventory
3. Push notifications and automated campaigns to dealers highlighting flash sale opportunities
4. Real-time dashboards tracking the impact on order distribution across the month
The Results
1. Revenue distribution across the month became significantly more even, reducing the end-of-month concentration.
2. Cash flow predictability improved, easing the working capital management burden on the finance team.
3. Inbound credit from dealers was more evenly dispersed, improving the distributor's payment cycle with suppliers.
4. The flash sale mechanism also served as a tool for inventory management, helping clear slow-moving stock before it became a write-off risk.
5. Dealer engagement with the digital platform increased, as dealers checked regularly for flash sale opportunities.