Why thin margins get thinner
In distribution, profit hides in the detail: product mix, freight, rebates, and price exceptions. When a rep commits an order without seeing its real margin, the low-margin order is fulfilled blind, and under cost volatility the floor moves without anyone noticing.
Make margin visible at the moment of commitment
The number that matters is gross margin per order or line, net price less landed cost, freight, and rebate, visible at quote and order time, not at month-end. On-time-in-full, the ASCM SCOR reliability measure, underpins both customer retention and rebate eligibility, so margin and service are linked.
Where the ERP closes the loop
On Hudace, landed cost and freight sit with the order line, so a rep sees margin before committing, and Xenon AI sets price guidance by customer, segment, and elasticity. Omnichannel order management keeps inventory and margin current, so the same unit is not sold below the floor on one channel while scarce on another.
A commercial lead sets the guardrails; the rep works within them.
The numbers to watch
Hold margin and service in one view; rebates link them.
Gross margin per order
(Net price - landed cost - freight - rebate) / net price, at order time. The number to protect.
OTIF
On-time-in-full deliveries. Underpins retention and rebate eligibility.
Price-exception rate
Orders sold off standard price. Where margin quietly leaks.
Margin variance
Actual vs target margin by order. Surfaces cost volatility before month-end.
See order-line margin on Hudace
Talk to our team about putting landed cost and margin on the order line.