Case Study

Cost Benchmarking Uncovers Opportunities for 27% EBITDA Improvement for Mid-Market Businesses Across Industry Segments

Services Provided
Supply Chain Optimization
Industries Served
Consumer Products

The Challenge

Several clients across the automotive, lumber, and plastics industries were facing rising input costs without a clear understanding of cost drivers. Poor visibility into the cost structures of commodities, goods, and services contributed to their margin compression. These businesses sought an expert partner to uncover hidden cost-saving opportunities through an accurate benchmarking process.

Our Approach

TriVista implemented its robust cost benchmarking process tailored to each client’s spend profile and industry. We utilized –

  • Commodity Index Tracking – With access to over 450 published indices covering key materials such as metals, polymers, and energy, our client insights were powered by the latest market data which helped establish a competitive baseline for clients
  • Custom Indexing – Leveraged analytics and advanced methods to refine and tailor indices specific to the top spend categories
  • Supply Market Research – Collaborated with category experts for non-index costs such as parcel rates

This approach allowed us to identify opportunities to restructure supplier relationships and optimize procurement strategies across the board.

The Results

  • Identified 27% EBITDA improvement for businesses across automotive, lumber, and plastics industries
  • Delivered a roadmap of short-term, medium-term, and long-term cost savings initiatives to help clients renegotiate contracts and achieve substantial cost reductions, including:
    • 35% rate reduction in parcel freight
    • 11% cost savings in lumber commodity market
    • 6% cost savings in commodity plastics

To find out how TriVista can help you achieve similar outcomes, contact us today:

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