Live example — Commercial Performance Review

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Generated by the 3DMAI Commercial Intelligence Engine from a fictional UK distributor's accounts. This is the standard of analysis available to any commercial manager, category manager, procurement director or SME owner for £39.99 a month.

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Northbridge Home Products Ltd is a fictional UK business created for demonstration purposes only.

Northbridge Home Products Ltd
Review period: 12 months to 31 March 2026  ·  Comparative: 12 months to 31 March 2025
Generated: July 2026
Rules engine: v1.0
Evidence coverage: 78%
Classification: Confidential
This review is based on financial data, management information and questionnaire responses provided by the client. It constitutes commercial analysis, not audit, legal, tax or regulated financial advice. All findings are classified by evidence type. Where evidence is insufficient, findings are suppressed or clearly labelled. Quantified impacts are presented as low/base/high ranges, not single-point estimates.
◆ Commercial Health Scorecard
Cash & Working Capital
High Risk
Debtor days deteriorated significantly. Cashflow pressure confirmed.
Margin & Pricing
Needs Attention
Gross margin declined 4.2pp. Cost recovery lag identified.
Customers & Sales
Needs Attention
One customer at 24% of revenue. Aged debt concentration.
Products & Stock
Needs Attention
£187k slow/dead stock identified. Long-tail complexity high.
Suppliers & Procurement
Needs Attention
Top supplier 41% of spend. Freight recovery gap quantified.
Cost & Capacity
Stable
Fixed costs controlled. Productivity within sector norms.
Growth & Strategy
Stable
Revenue +7.2%. Core range profitable. Cross-sell opportunity identified.
Risk & Governance
Insufficient Data
Contract evidence not provided. See evidence gaps.
◆ Calculated Metrics — Period vs Comparative
Annual Revenue
£3.82m
↑ +7.2% vs prior year
Revenue growing. Margin not keeping pace.
Source: P&L — FACT
Gross Margin %
27.3%
↓ -4.2pp vs prior year (31.5%)
Largest single commercial concern. Quantified below.
Gross profit ÷ revenue — CALCULATION
Debtor Days
54 days
↓ +11 days vs prior (43 days)
Triggers CASH-02. Cash absorption significant.
Receivables ÷ credit sales × 365 — CALCULATION
Inventory Days
87 days
↓ +19 days vs prior (68 days)
Cash tied in stock rising faster than sales.
Avg inventory ÷ COGS × 365 — CALCULATION
Cash Conversion Cycle
112 days
↓ +28 days deterioration
Inventory + debtor days − creditor days. Structural pressure.
87 + 54 − 29 = 112 days — CALCULATION
Top Customer %
24%
Triggers CUS-01 concentration threshold
Single customer: £916k revenue. Requires account plan.
Customer sales ÷ total revenue — CALCULATION
◆ Executive Summary
Northbridge Home Products Ltd has delivered revenue growth of 7.2% in the review period, driven by increased volume across the core range. However, this growth has come at a significant commercial cost: gross margin has declined by 4.2 percentage points from 31.5% to 27.3%, representing approximately £160,000 of gross profit lost at current revenue. The primary driver is a lag between supplier cost increases and selling price recovery, identified across multiple product lines.

The business faces compounding cashflow pressure: debtor days have deteriorated by 11 days to 54 days, inventory days have increased by 19 days, and the cash conversion cycle now stands at 112 days — 28 days worse than the prior period. This combination of margin erosion and working capital deterioration represents the most urgent commercial challenge.

The business has a strong and profitable core range that provides a solid foundation. Five priority actions identified below have a combined non-overlapping annual opportunity of £214,000 to £287,000.
⇧ Total non-overlapping annual opportunity: £214k – £287k
◆ Priority Decisions
P1 Critical Immediate action required CASH-02 MAR-01
Gross margin erosion is costing £160,000 annually — costs rising faster than prices
What the engine found
Gross margin declined from 31.5% to 27.3% over the review period — a fall of 4.2 percentage points. At current revenue of £3.82m, this represents £160,440 of annual gross profit lost versus prior year. Analysis of purchase costs against selling prices across 847 active SKUs shows supplier costs increased on average 6.8% while selling prices moved only 2.1% — a 4.7-point cost recovery lag concentrated in 94 high-volume lines. These 94 lines account for 71% of the total margin erosion.
Evidence
‣FACT P&L: Gross profit £1,042k vs £1,089k prior — decline of £47k on 9.6% higher revenue
CALCULATION Margin %: 27.3% vs 31.5% — delta 4.2pp × £3.82m = £160k annualised cost
CALCULATION 94 affected SKUs: weighted average cost +6.8%, price +2.1%, gap 4.7pp
INFERENCE Lag pattern consistent with supplier cost push not being passed to customers
Estimated annual impact
Conservative
£82k
Base case
£124k
Full recovery
£160k
Base: 50% volume retention at full recovery price. Conservative: 30% volume at risk.
Confidence: High — Margin calculation from reconciled P&L. SKU-level data confirms cost-price lag. Volume sensitivity is an inference; actual elasticity requires market testing.
Recommended action Identify the 94 affected SKUs and model a staged price increase of 4–6%. Apply to new quotations first. Do not apply a blanket increase — assess each SKU for customer sensitivity and competitive position. Test for 30 days before full implementation. Measure quote conversion and margin weekly.
P1 Critical Commence within 14 days CASH-02 CASH-03
Debtor days at 54 — 11-day deterioration is absorbing £115,000 of working capital
What the engine found
Debtor days have deteriorated from 43 to 54 days — an 11-day worsening that is absorbing an estimated £115,000 of additional working capital versus the prior year position. The aged debtors ledger shows £241,000 (38% of total receivables) is overdue beyond 60 days, concentrated in four accounts. One account — Brookfield Interiors — represents £89,000 overdue by more than 90 days and warrants immediate escalation.
Evidence
‣FACT Aged debtors: total £633k. >60 days: £241k (38.1%)
CALCULATION Debtor days: £633k ÷ £3.82m × 365 = 60.5 days (credit sales used: 54 days)
CALCULATION Cash absorbed by deterioration: 11 days × £3.82m ÷ 365 = £115k
FACT Brookfield Interiors: £89k >90 days. No payment plan on file.
Estimated cash release
To 48 days
£61k
To 43 days
£115k
To 35 days
£200k
Confidence: High — Aged debtors reconcile to balance sheet. Calculation is deterministic. Brookfield position confirmed from ledger dated 30 June 2026.
Recommended action Assign account owner to each overdue account above £10k. Contact Brookfield Interiors within 48 hours — agree payment plan or place on stop. Implement weekly aged-debt review. Introduce 60-day credit limit review for all accounts. Consider early-payment discount for strategic accounts with good credit history.
P2 High Commence within 30 days PRO-01 PRO-02
£187,000 slow and dead stock is tying up cash with increasing obsolescence risk
What the engine found
Stock analysis identifies £187,000 of slow and dead inventory at cost value: £124,000 with no sale in the last 180 days (classified slow) and £63,000 with no recorded sale in over 12 months (classified dead). The dead stock relates to 47 SKUs across two discontinued ranges. At current carrying cost, this stock has a GMROI of -0.12 — negative return on inventory investment. Every additional month of holding increases obsolescence and clearance cost risk.
Evidence
‣FACT Stock report: £187k identified (£124k slow, £63k dead at cost)
CALCULATION GMROI on affected lines: GP £0 ÷ avg inventory £187k = -0.12
CALCULATION Cash release at 80% recovery: £150k. At 50%: £94k
INFERENCE Carrying cost at 15% pa: £28k annually in financing and storage cost
Estimated cash release
50% recovery
£94k
65% recovery
£122k
80% recovery
£150k
Confidence: High — Stock values from client-supplied report reconciled to balance sheet within 2.1%. Classification based on last-sale dates confirmed. Recovery rate is an inference — actual depends on clearance channel and condition.
Recommended action Classify all 47 dead-stock SKUs as: return to supplier (where agreement permits), bundle with active lines, promotional clearance, or write down. Do not reorder any slow-moving line until cover falls below 60 days. Introduce a monthly stock-age review. Stop purchasing new lines from discontinued ranges immediately.
P2 High Commence within 30 days CUS-01 CUS-02
Top customer at 24% of revenue — no formal account plan or concentration risk management
What the engine found
The largest customer (Meridian Trade Supplies) accounts for £916,000 (24.0%) of annual revenue and is estimated to represent 29% of gross profit — concentration of profit exceeds concentration of revenue, indicating above-average margin on this account. No formal account plan, contract or documented relationship ownership was identified. Loss of this customer would reduce annual revenue by approximately £916k and gross profit by an estimated £265k.
Evidence
‣FACT Customer summary: Meridian £916k revenue (24.0% of total)
CALCULATION GP at blended 28.9%: est. £265k (29% of total GP vs 24% of revenue)
INFERENCE Above-average margin suggests premium product mix or lower service cost
EVIDENCE GAP No contract, trading agreement or renewal date provided
Risk at stake
Revenue at risk
£916k
GP at risk
£265k
% of total GP
29%
Confidence: Medium — Revenue from customer summary confirmed. GP estimate is inference from blended margin — product-level data by customer not provided. Contract status unknown.
Recommended action Assign a named account owner immediately. Map all contacts and decision-makers. Establish a 90-day account review. Identify two or three customers with potential to grow towards 10–15% of revenue to begin reducing concentration dependency. Request supply agreement or trading terms if none exist.
P3 Medium Plan within 60–90 days MAR-07 SUP-02
Freight recovery gap costing £34,000 annually — delivery costs not being charged to customers
What the engine found
Outbound delivery costs total £127,400 in the review period. Freight charged to customers totals £93,200 — leaving a net unrecovered freight cost of £34,200. This represents a hidden fulfilment cost reducing contribution margin by approximately 0.9 percentage points at current revenue. The gap is concentrated in orders below £500 net value, where free delivery appears to be applied inconsistently.
Evidence
‣FACT P&L freight cost: £127,400. Customer freight charges: £93,200
CALCULATION Net gap: £34,200 (26.9% of freight cost unrecovered)
CALCULATION Margin impact: £34.2k ÷ £3.82m = 0.9pp contribution margin reduction
INFERENCE Order-size analysis suggests sub-£500 orders disproportionately driving gap
50% recovery
£17k
75% recovery
£26k
Full recovery
£34k
Confidence: High — Both freight cost and customer charge from P&L. Gap is arithmetically confirmed. Order-size analysis is inference from sales transaction data.
Recommended action Introduce a minimum order value of £350–£500 for free delivery. Apply a delivery surcharge below this threshold. Model the customer impact before implementation — this is a pricing and policy decision, not a blanket charge. Estimated payback period: 30–60 days.
ⓘ Evidence Gaps — Findings Suppressed
The following analysis domains could not be completed due to insufficient evidence. Findings in these areas have been suppressed rather than generated from assumption.

1. Supplier contracts and terms (Risk & Governance — RISK-02): No supplier agreements, trading terms or contract documentation was provided. Commercial risk from undocumented supplier relationships cannot be quantified. Provide signed agreements with top five suppliers to enable this analysis.

2. Pipeline and sales forecast (Growth & Strategy — CUS-06): No CRM data, order pipeline or sales forecast was provided. Revenue gap analysis and pipeline coverage cannot be assessed. Provide current qualified pipeline with values and expected dates.

3. Product-level cost by customer (Customers — CUS-03): Customer gross profit estimates are based on blended margin — product mix by customer was not available. This limits customer profitability precision. Provide sales transaction data with product codes to enable SKU-level customer analysis.
◆ 90-Day Action Plan
Priority Action Owner By Success measure
P1 Critical Contact Brookfield Interiors — agree payment plan or place on stop MD / Finance 48 hours Payment plan agreed or supply suspended
P1 Critical Identify 94 margin-eroded SKUs and model staged price increase Commercial Week 1 Price model complete; test applied to new quotes
P1 Critical Implement weekly aged-debt review with named account owners Finance Week 1 All accounts >£10k overdue have owner and action
P2 High Classify all 47 dead-stock SKUs: return / bundle / clear / write down Commercial / Ops Week 3 Classification complete; reorder freeze in place
P2 High Assign account owner for Meridian Trade Supplies; map all contacts MD / Sales Week 2 Account plan documented; review scheduled
P2 High Price increase test — apply to new quotations for 30 days Commercial Week 2 Margin % on new orders improving; conversion tracked
P3 Medium Model minimum order value for free delivery; agree threshold Commercial Day 45 Policy agreed; freight recovery rate improving
P3 Medium Begin stock clearance — promotional pricing on slow lines Sales / Marketing Day 60 £50k cash recovered from clearance within 90 days
Why this is not ChatGPT with a good prompt.
Every finding above was generated by the 3DMAI Commercial Intelligence Engine — 60+ specific commercial rules, deterministic calculations, and evidence classification. Here is exactly what makes it different.
ChatGPT / General AI
Reads your file and generates a general summary
No commercial rules — it infers from training data
Cannot distinguish a FACT from an INFERENCE
Gives a single-point financial estimate — or makes one up
Does not know what CASH-02 or PRO-01 means
No priority scoring — everything feels equally important
Does not identify evidence gaps — it fills them with inference
Cannot calculate debtor days, GMROI or cash conversion cycle deterministically
Has no sector-specific commercial thresholds
Cannot produce a P1–P4 prioritised action plan
3DMAI Commercial Intelligence Engine
Applies 60+ specific commercial rules to your data
Each rule has a defined trigger, evidence requirement and threshold
Every output classified: FACT / CALCULATION / INFERENCE / ASSUMPTION
Financial impact always shown as low / base / high with stated assumptions
CASH-02 fires when debtor days deteriorate >10% or >7 days — not a guess
P1–P4 scoring from weighted model: cash, profit, risk, urgency, confidence
Evidence gaps explicitly named — never silently filled
Deterministic calculations run before AI sees any data
UK-specific: VAT, NLW, employer NI, UK payment norms, UK tariffs
Produces a Commercial Performance Review you can present to your MD
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Northbridge Home Products Ltd is a fictional UK business created for demonstration purposes only. All figures, customer names and supplier names are invented. This example is intended to illustrate the format and rigour of a 3DMAI Commercial Performance Review. The 3DMAI Commercial Intelligence Engine applies the same methodology to real business data supplied by subscribers. © 2026 3DMAI. All rights reserved.