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Instead of cutting people, they focused on cutting waste, inefficiency, and outdated processes—and the results speak for themselves.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.
🏗️ Company Overview
Name: Highridge Supply
Locations: 7 branches across NC, SC, and GA
Annual Revenue: ~$120 million
Core Products: Lumber, siding, roofing, windows, fasteners
Challenge: Rising freight costs, labor inflation, and declining margins on core commodities
🎯 Goal: Cut Costs Without Cutting People
Leadership’s mission was clear:
“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.
✅ Strategy 1: Process Standardization Across Branches
The Problem:
Each location had its own way of doing things—different picking, loading, and routing processes. This led to delays, errors, and inconsistent service.
What They Did:
Created SOPs (standard operating procedures) for core workflows
Implemented cross-branch training and process audits
Designated “process champions” in each location
Outcome:
📦 Reduced rework by 30% and cut loading times by 15%
“Standardization saved time, reduced mistakes, and made training faster.”
✅ Strategy 2: Optimized Delivery Routing With Existing Fleet
The Problem:
Delivery routes were manually planned and rarely optimized. Drivers often doubled back or ran half-full trucks.
What They Did:
Deployed routing optimization software integrated with their ERP
Trained dispatchers to balance urgency with route efficiency
Monitored delivery cost per mile and per order
Outcome:
🚚 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.”
✅ Strategy 3: Cross-Trained Staff to Increase Flexibility
The Problem:
Bottlenecks happened when key people were out or volume surged in one area.
What They Did:
Cross-trained warehouse staff in picking, staging, and returns
Enabled customer service reps to assist in inventory lookups and logistics
Built float teams for high-demand days
Outcome:
👷 Reduced overtime hours by 22% and minimized workflow disruptions
“We moved labor to where the work was—without adding hours.”
✅ Strategy 4: Consolidated Purchasing and Improved Vendor Terms
The Problem:
Each branch had its own vendor preferences, leading to inconsistent pricing and missed volume rebates.
What They Did:
Centralized purchasing decisions
Renegotiated vendor terms for bulk and early-pay discounts
Tracked cost-per-unit trends monthly
Outcome:
📉 Saved $420K in annual material costs through consolidation and smarter timing
“We didn’t buy less—we bought smarter.”
✅ Strategy 5: Engaged Employees in Cost-Saving Ideas
The Problem:
Frontline teams saw daily inefficiencies—but weren’t being asked for solutions.
What They Did:
Launched a “Save to Strengthen” campaign across all branches
Collected 75+ cost-saving ideas from drivers, pickers, and CSR teams
Recognized and rewarded implemented ideas
Outcome:
💡 Over $90K in savings came from employee-led ideas (e.g., returns staging system, supply reuse)
“When people feel ownership, they find ways to help.”
📈 12-Month Results
MetricBeforeAfter% Change
Operating Costs$13.2M$11.6M▼ 12.1%
Employee Headcount148148No Change
Fleet Miles per Month87,00071,400▼ 18%
Rework Orders6.8%4.7%▼ 30%
Employee Satisfaction Score7.2/108.3/10▲ 15%
🧠 Key Takeaways for Other Distributors
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.
✅ Conclusion: Resilience Starts With Smarter Efficiency
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.
