In a margin-sensitive industry like building materials distribution, reducing operational costs is essential—but doing it without layoffs? That’s the real challenge.
For many companies, headcount reductions are the default response to rising costs or slower demand. But Highridge Supply, a mid-sized distributor with 7 branches across the Southeast, took a different route.
Instead of cutting people, they focused on cutting waste, inefficiency, and outdated processes—and the results speak for themselves.
This case study shows how Highridge Supply strategically reduced operational costs by over 12% in one year while maintaining headcount—and even improving employee engagement.
Challenge: Rising freight costs, labor inflation, and declining margins on core commodities
“Protect jobs while improving profitability. We need to do more with the same headcount—not less.”
The team set a bold goal to reduce operational costs by 10% in 12 months, focusing on efficiency, not elimination.
Each location had its own way of doing things—different picking, loading, and routing processes. This led to delays, errors, and inconsistent service.
📦 Reduced rework by 30% and cut loading times by 15%
Delivery routes were manually planned and rarely optimized. Drivers often doubled back or ran half-full trucks.
🚚 Cut fleet mileage by 18%, fuel costs down 14%, on-time deliveries improved
“We got more out of every truck and every driver without adding a mile.”
Bottlenecks happened when key people were out or volume surged in one area.
Enabled customer service reps to assist in inventory lookups and logistics
Each branch had its own vendor preferences, leading to inconsistent pricing and missed volume rebates.
📉 Saved $420K in annual material costs through consolidation and smarter timing
Frontline teams saw daily inefficiencies—but weren’t being asked for solutions.
💡 Over $90K in savings came from employee-led ideas (e.g., returns staging system, supply reuse)
Cutting cost ≠ cutting people—start with inefficiencies, not headcount.
Process consistency makes scaling and training faster and cheaper.
Technology doesn’t replace people—it empowers them.
Your best cost-saving ideas might be sitting in your warehouse.
Celebrate savings wins like you celebrate sales wins.
Highridge Supply proved that you don’t need layoffs to reduce costs—you need leadership, discipline, and buy-in. By taking a people-first, process-smart approach, they not only saved money—they built a stronger, more resilient business ready for future growth.
Certified Engineers
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