Channel and go-to-market: commercial transformation for a building products manufacturer
BUILDING PRODUCTS AND MANUFACTURING · COMMERCIAL STRATEGY · GO-TO-MARKET
The situation
A major building products manufacturer was losing profitability as builder networks expanded across state boundaries. It ran three legacy channel structures side by side, and the overlap created visibility gaps, margin erosion, unrecovered operational leakage, and customers being cannibalised between its own channels.
The work
We diagnosed the channel economics and redesigned the route to market.
Assessed a $46.6 million national channel cost base against performance.
Recast customer-level and product-line margins across the multi-state networks to isolate the loss-making categories.
Mapped the site footprint across major metropolitan hubs to find density bottlenecks and the places the channels were competing with each other.
Structured a five-stage transformation roadmap, from mobilisation through assessment, high-level and detailed design, to implementation planning, run on stage-gates.
The outcome
A total EBIT improvement of $6.2 to $14.9 million identified at existing sales volumes, and $16.9 million of cumulative value through margin recapture.
$1.8 to $3.7 million in immediate benefit from exiting negative-margin accounts and fixing underperforming trade centres.
$3.2 million of supply-chain leakage recovered by building value-based freight pricing into sales targets.
About a twenty per cent cut in channel and SG&A cost, an $11 million non-COGS reduction pool, and $868,000 of margin erosion removed by restructuring reseller pricing and rebate tiers.