Client:
Two recently merged, mid-sized construction materials companies acquired by private equity, with a mandate to consolidate operations, unlock synergies, and accelerate profitability. The companies operated independently prior to the acquisition, each with their own supply chain teams, processes, and spend profiles.
Challenge:
Following the acquisition, the new leadership team was under significant pressure to deliver $1.7 million in annual cost savings in time for the next fiscal year—less than six months away. The companies needed to unify their operations, rationalize redundant resources, and improve cost efficiency across supply chain functions, all without disrupting ongoing production or customer delivery.
The Chief Operating Officer understood that this type of transformation required significant analysis. He engaged Waypost to take a practical, on-the-ground approach to evaluating the entire supply chain landscape—from sourcing and logistics to inventory, planning, and fleet deployment.
Strategic Objectives:
The core objectives were straightforward, but ambitious:
- Identify cost savings opportunities across both organizations without compromising operations.
- Unify the two supply chain teams into a single, high-performing unit with shared processes and goals.
- Establish foundational tools and practices to support ongoing performance improvement after integration.
- Deliver results fast—within a six-month window aligned with the next fiscal year.
Waypost was tasked with not only finding the dollars but also building a repeatable process and helping drive implementation.
Approach:
Waypost Advisors deployed a four-person team with deep experience in transportation, warehousing, sourcing, planning, inventory optimization, and fleet management. Over the course of a three-week diagnostic, the team aligned with leadership on priorities, conducted stakeholder interviews, and performed hands-on process mapping and data analysis.
The work centered around surfacing immediate and longer-term value through a set of focused activities:
- Spend Analysis: Evaluated direct and indirect categories, including raw materials, packaging, services, and freight by mode.
- Inventory Optimization: Assessed stocking levels for raw and finished goods at both companies, using the proprietary Waypost Optimal Stocking Tool® to compare actual stock points to modeled best-fit targets.
- Freight Profitability: Investigated freight markup policies and identified margin leakage.
- Planning Efficiency: Reviewed forecasting accuracy and production scheduling practices to uncover inefficiencies that triggered manufacturing overtime or misused labor.
- Intercompany Logistics: Assessed internal transfers and warehouse flow, exposing unnecessary transportation and handling costs.
- Fleet Utilization: Mapped deployment, dwell times, and maintenance schedules to highlight underperformance and optimization opportunities.
The Waypost team also supported the cultural side of the merger—coaching newly merged teams, identifying best practices from each legacy company, and facilitating decisions on how to operationalize the most effective ones moving forward. Practical tools and processes were introduced, including forecasting templates, RFP timing strategies, and frozen fence rules for production scheduling.
Assessment Areas:
- Category-level spend by material and service type
- Inventory levels and stock point policies
- Transportation strategy and rate structures
- Forecasting and scheduling disciplines
- Internal transfer volumes and logistics costs
- Fleet deployment and asset utilization
- Organizational structure and decision-making roles
Tools and Methodologies:
- Stakeholder interviews and process deep-dives
- Comparative best practice identification
- Waypost Optimal Stocking Tool®
- Cost savings quantification models
- RFP execution planning and procurement support
Deliverables:
- Supply chain current state assessment with cost savings roadmap
- Median savings opportunity of $1.3M (range of $700K to $1.9M)
- Consolidation recommendations for team structure and key processes
- Actionable tools for planning, forecasting, and inventory optimization
- On-the-ground coaching to support team adoption and implementation
Conclusion:
Waypost Advisors delivered a comprehensive assessment that revealed cost savings equivalent to 7% of EBITDA—an outcome with significant impact for the client’s private equity owners. As a result, the client retained Waypost for implementation support, enabling internal teams to remain focused on day-to-day operations and organizational integration.
Waypost helped execute transportation RFPs, renegotiate inbound material contracts, build customized forecasting tools, and manage project execution against aggressive timelines. Within months, the client began to see a return estimated at 10x their investment in Waypost services—clear evidence of impact at speed.
“You guys have done exactly what we needed you to do, I would say, in a compressed timeline. This will be a catalyst for change in our business.” — CEO, Middle-Market Construction Materials Company