Summit Supply Case Study

Project Overview

Summit Supply Co. is a 10-year-old online retailer of outdoor lifestyle products. They sell a list of curated outdoor lifestyle products with a loyal base and recognizable brand, operating a direct-to-consumer e-commerce model. Revenue has plateaued at $1.5–$2.0M; margin has drifted below 8%.

Assortment-led growth: Wide range of SKUs built over time to capture niche interest areas.
Strong returning customers: Loyal base and solid brand recognition.
Marketing mix: Paid social, search, email, and seasonal campaigns.

$1.7M

Trailing 12 months revenue

~1,200

Active SKUs - fragmented catalog

8–12 wks

Lead time from overseas suppliers

Challenge

Summit Supply had reached a growth plateau despite strong market fundamentals. Internal processes were becoming bottlenecks, and the sales team lacked clear direction for expansion opportunities.

What’s happening

Revenue Net Margin

Revenue has plateaued near $1.7M while net margins slipped under 8%.

Top 20% SKUs Long tail

~20% of SKUs drive ~80% of revenue. Focusing on winners improves forecasting, inventory turns, and marketing ROI.

SKU Bloat. Nearly 1,200 SKUs with long-tail low-volume items dilute focus and ad efficiency.

Lead Times. With 8–12-week shipping times, popular items sell out and low-demand items build up.

Overhead Drag. Running several warehouses and doing work by hand makes each order more expensive.

Bad Habits. No SKU-level margin reviews; inventory tracked in spreadsheets; undifferentiated ad spend.

Margin lift potential

8% → 23% net margin potential via SKU and overhead optimization

Lead time reduction

−30–40% lead times by renegotiation and planning

Solution

Liteturn implemented an ROI-first approach: starting with quick wins and then building durable operations over 3–12 months. Over 24 months, this approach targets revenue growth from ~$1.7M to ~$3.0M, net margin expansion to 12–15%, and 30–40% faster lead times allowing the business to focus on identifying new market segments.

SKU Rationalization. Cut or bundle low performers; double-down on the top cohort. Quarterly margin review & lifecycle plans.

Inventory + Planning. Predict sales, set clear reorder levels, rank products by importance, and keep a small buffer of bestsellers.

Paid & Merch Mix. Shift budget to high-margin SKUs; experiment with bundles; retire unprofitable campaigns.

Ops Streamlining. Consolidate warehousing; SOP automation; unit economics embedded in decisions.

Phase 1 (0–90 days)

Quick wins: SKU cuts, ad mix, stock-on-hand.

Phase 2–3 (3–12 months)

Planning, supplier tiers, warehousing consolidation.

Projected outcomes (24 months)

Revenue: from ~$1.7M to $3.0M with focused assortment and stock availability.

Revenue

+76%

Net Margin: rise to 12–15% from sub-8% as overhead and mix improve.

Net Margin

+15%

Lead Times: reduce by 30–40% via supplier tiers, nearshore SKUs, and planning.

Lead Time

↓ 40%

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