Finance · All retail

Margin Leakage Audit

Margin bleeding across categories. Ranks the recoverable dollars.

Target KPI Gross margin
Executes in ≤ 48 hours
System of record SAP · Snowflake · BigQuery
Trigger condition

Realised gross margin trails planned margin by more than 50 basis points in a category, and the gap is not explained by approved markdown.

Write-back

Margin bridge published to the warehouse; per-leak cases opened against the owning function; SAP cost records flagged where wrong.

Every write is gated on an approver role you name. Nothing runs unattended.

Procedure
  1. Bridge planned to realised margin: cost drift, unplanned markdown, mix, shrink, freight, and off-contract purchase price.
  2. Rank each leak by recoverable dollars rather than size, since some leaks are structural and cannot be recovered.
  3. Assign each recoverable leak to the function that owns it, with the specific action rather than the diagnosis.
  4. Open cases per leak with the evidence and the estimated recovery, gated on the finance lead.
  5. Close each when its component of the bridge closes and holds for a full period.
Outcome metric

Recovered margin dollars per leak over 90 days, measured against the bridge at case open.

The case closes on this number, not on the action being taken. A playbook without a close condition is a dashboard.

Run Margin Leakage Audit on your data.

Pick three playbooks from the catalog. We wire them against your system of record for the pilot.

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