Challenge :
Building materials company reimbursed roof tilers for purchasing materials through distributors with significant markups, despite having in-house capabilities.
Solution: Value Chain Restructuring
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- Direct procurement bypassing distributors
- 3PL warehousing for just-in-time delivery
- New sales depot for independent tilers
Outcomes
$5M+ Annual cost reduction
$1M New sales revenue
Optimized costs, unlocked new revenue, and strengthened vertical integration