Construction Supplies Manufacturer
Nearshoring Manufacturing
Our Impact
$3.8M in Savings in Under 12 Weeks
The Challenge
- Client experienced a dramatic drop in sales in its plastic and steel parts for concrete forms.
- The company's long-standing relationship with key distributors was undercut by competitors adopting a direct-to-customer model.
- While the client had a successful offshore manufacturing strategy, it had failed to deliver the cost competitiveness it needed, in part to the low labor content of the parts and capital requirements.
The Journey
- A market assessment was conducted to determine the competitor strategies affecting the company's sales, including an online direct-to-customer format.
- Tenzing identified a domestic manufacturer less than 100 miles from the Client’s distribution center in a free trade zone.
- Value analysis workshops were conducted to improve the company's manufacturing and financial processes.
- Product and materials testing procedures were updated to improve overall quality while reducing material costs.
The Results
- Tenzing identified $3.8 million in implementable savings through alternative material changes, operational improvements, competitive sourcing, and design changes.
- After initial testing, optimized product designs were well received by the company's customers.
- As a result of Tenzing’s work the client was able to drop product costs by more than 15% to regain market share, restoring product margins and sales revenue to historic levels.