Procurement diagnostics finding $5M for a roofing company
- Location
- Texas, USA
- Year
- 2023
- Engagement
- Profitability Improvement: Sourcing & Procurement
A leading commercial roofing and waterproofing company was facing profitability pressures from its lender. Job revenue was based on competitive bids so profitability was impacted by material margins. The lender requested a procurement effectiveness review.
Our team analyzed two years of material spend and indirect expenses to determine price discrepancies to commodity items and theoretical product costs. We assessed quoting, procurement and logistics processes and tracking systems.
Measurable impact
$5M
Identified $2.6-5.5M opportunity on approximately $51M of annual purchases (5-11%)
Construction
Case snapshot
Tools were implemented to improve visibility of jobs, purchased products, and unit prices
Construction
Case snapshot
These measures aimed to reduce total cost of ownership and maximize material margin
Construction