Trade Service and epaCUBE announced the release of Margin Optimizer, a cloud-based margin optimization solution that offers distributors the ability to forecast the future impact of supplier cost changes on their gross margin.

Visibility into the effects of manufacturer price changes can help distributors take appropriate action to avoid experiencing margin squeeze as well as to identify opportunities to increase margin. It also offers another way of providing exceptional customer service to large accounts who would be most affected by cost changes, said the companies in a joint release.

“Margin Optimizer gives us clear visibility into price-change dynamics that create opportunities to increase gross margin,” says Tim Schlesser, corporate operations manager for Advance Electrical, an early adopter of the product. “We are now able to easily see the situations where we can increase price and margin without affecting competitiveness. The ability to see how price changes actually impact the items that our customers buy has resulted in us obtaining the information we need to prudently grow our margins.”