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Industrial distribution · Data engineering, analytics · Built by Ryan Murphy

Three distributors, two ERP migrations, and data nobody could use.

Illustration of a price tag hanging from a gear

Summary

Fortier & Associates brought us in for three HVAC parts and equipment distributors whose data had come through two ERP migrations badly degraded. They could see their business by vendor and not much else — no segment-level view, and no real understanding of what delivery was costing them or earning them. We rebuilt and enriched the data so it could be analyzed the way the businesses actually operate, which surfaced inefficiencies and gave them what they needed to restructure pricing and delivery charges for increased profitability.

The problem

Two ERP migrations is where operational data goes to die. Fields get remapped, meanings drift, historical records arrive in a format nobody planned for, data gets dropped, and the reconciliation that should have happened gets deferred until it's someone else's problem.

For these three distributors, the result was that the business could only be examined at the highest level — by vendor, and not much below it. Segment-level questions couldn't be answered, which meant the questions that actually drive profitability weren't being asked. Delivery was the clearest example: they were charging for it and paying for it, and had no reliable view it's volume or potential.

What we built

We enriched and restructured their data so it could be segmented the way the business is actually run, then built analysis on top of it — including the delivery fees and pricing segmentation that had been invisible.

The core of the work was classification. The fields that would have answered their questions didn't exist in the data, so we inferred them from transaction-level records — deriving the segmentation the business needed from what the transactions could tell us.

Delivery was the clearest case. There was no classification of what went out on the company's own trucks versus what shipped another way, or in what volume. That had to be reconstructed from transaction patterns before anyone could ask what self-delivery actually earned. Once it existed, it was answerable for the first time since migration.

Built on BigQuery, with Tableau for data visualization to present to the people making decisions rather than sitting in a data lake. Delivered in weeks.

What was hard

Making the segmentation match how the business operated and understood itself.

This sounds like a technical problem and isn't. In most cases, the categories that exist in an ERP are the categories someone configured during implementation, and they frequently don't correspond to how the people running the company actually think about their product lines, their customers, or their margins. In this case, product segmentation was lost entirely in migration. Getting that right meant working out how the business genuinely viewed what was happening and then building the data to reflect it — not the other way around.

Inferring a field the system never recorded means deciding what counts as evidence, and then being right often enough that people trust the resulting numbers. For the delivery classification, that meant working out which transaction patterns reliably indicated an own-truck delivery — and validating that against what the business suspected to be true, because a segmentation that's confidently wrong is worse than one that doesn't exist.

Results

$9.6M in identified upside across the three businesses, in under two months of work.

~$350K of that from restructuring shipping charges alone. Once self-delivery could be separated from other shipping in the transaction data, the gap between what delivery cost and what it was charged for became visible — and correctable.

Segment-level visibility where there had been almost none. Parts versus equipment, product segment within each, and subsegment beneath equipment — a view of the business that hadn't been available since before the migrations.

A margin lever nobody could see before. With segmentation in place, we measured margin by sales team member and looked at the ratio of equipment sales to the install accessories and repair parts that follow them. That ratio is where the higher-margin revenue lives, and it varied by rep in ways that were invisible at the vendor level. It became a core part of setting targets and implementing profit goals.

These figures represent identified upside — margin available in the business given the pricing and mix changes the analysis pointed to, not revenue booked.

Why this one matters

Margin already available in the business that nobody could see, because two ERP migrations had left the data unable to answer the question. The analysis recovered opportunities that were no longer available.

Little in this engagement required AI, and we didn't use it where it wasn't the right tool. Most of the work was data engineering and getting the model of the business right. That's sometimes the honest answer to a problem that arrives as a potential AI project.

Related services: Data Migration & Engineering · Data Analytics & Reporting

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