Margin recovery — allocation review
CONVERSATION · GROUNDED IN SAP, ETBF, MES, QUALITY, CHANNEL POS
5 SYSTEMS LIVE
1
Where can we recover margin this quarter — and how fast?
+$14.2M
Margin recovery identified
+2.1pp
Margin back
5 min
vs 3 weeks, 5 departments
There are four actions available worth $14.2M, and none of them puts a design-in at risk. The context: raw material — tantalum powder and ceramic dielectric — took $18.0M out of gross profit this year, and energy and freight another $4.5M. Volume (+$3.2M) and your 2026 pricing moves (+$9.0M) have already covered about half of that. Here is the other half.
Targeted price action on the 12 tantalum SKUs carrying the loss+$6.8M
Mix shift and qualified A700 polymer substitution+$3.1M
Inter-plant transfers — stop expediting what we already own+$2.6M
Freight lane re-route and renegotiated energy contract+$1.7M