eyko Ideas
A product can hit its price and still lose margin, to freight, rebates, and cost overruns that never make the headline. Margin Leakage by Product finds where expected margin is eroding, and what is causing it.
The Challenge
The margin on the price list disappears into freight, rebates, and manufacturing variances that are booked elsewhere.
No single charge looks large, but across freight, rebates, and cost overruns a product's margin quietly erodes.
Freight is in logistics, rebates in sales, cost variances in manufacturing, so nobody sees the full erosion on one product.
How eyko Solves It
Margin Leakage by Product reads landed margin against expected margin for each product, decomposes the gap into its causes, discounting, rebates, freight, and manufacturing cost overruns, and ranks the products where the leakage is worth closing.
Expected margin and landed margin diverge by 2.3M across the portfolio, concentrated in a handful of products.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Margin leakage by product reads landed margin against expected margin for each product, rather than trusting the margin on the price list. The Playbook shows where the two diverge across the portfolio and concentrates the total in the handful of products doing the damage, so the erosion is visible on the product line rather than lost in the blend.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about Margin Leakage by Product.
Margin leakage by product reads landed margin against expected margin for each product and decomposes the gap into its causes: discounting, rebates, freight, and manufacturing cost overruns. eyko ranks the products where the leakage is worth closing, so the erosion that hides below list margin is seen on the product line and assigned to an owner.
It reads revenue, price, and cost of goods by product from your ERP, alongside freight and logistics cost, rebate and discount records, and manufacturing variance data, plus any data platform you already run. It works with systems such as SAP, Oracle, and NetSuite, and there is no separate data project to start.
The Playbook decomposes the gap between expected and landed margin into freight, rebates, manufacturing cost overruns, and off-list discounting, and attributes each to the specific products where it occurs. Because those charges are booked in logistics, sales, and manufacturing systems, bringing them onto one view is what makes the full erosion visible.
Yes. The Playbook tracks landed margin on every beat rather than at the quarterly review, so a product's erosion surfaces as it starts rather than after several cycles are booked. It refreshes as freight, rebate, cost, and revenue data change, keeping the decomposition current.
Join the enterprises replacing weeks of manual analysis with a single prompt. See what eyko Playbooks can do with your data.
