Case Study|Building Products

An industrial lumber and packaging supplier locked in $500K in annualized savings, cut Site 1 labor costs 12 points as a share of sales, and pushed on-time delivery from below 80% to a perfect 100%, all by standardizing management across an M&A-built network instead of buying its way out.

Industrial Lumber and Packaging Supplier
Results at a Glance
$500K
Annualized Savings
100%
On-Time Delivery
12 pts
Labor Cost Reduction
Executive Brief

Grown through strategic mergers and acquisitions into a footprint of more than 30 facilities, this industrial lumber and custom wood-packaging supplier had scale but not consistency: inefficient management processes, inconsistent supervision, and recurring production delays were dragging on throughput at two key production sites. POWERS engaged to standardize how the operation was run, installing standardized management operating systems built on the Plan Actual Variance Action (PAVA) approach for hour-by-hour visibility, structured daily and weekly meetings, job-packet-driven planning and scheduling, and leadership training that put active supervision back on the floor. The results compounded across the network: Site 1's on-time delivery climbed from below 80% to 100% while labor costs fell 12 percentage points as a share of sales, Site 2's gross margin came in 12 points above budget and its contribution to the broader production network rose to 20%, and the program delivered $500,000 in total annualized savings. The success carried the tools and processes out to 20 additional sites.

Frontline Leadership · MOS
The Situation

A company that had bought its way to more than 30 facilities, yet ran each one on a different set of rules, so cost, delivery, and margin drifted wherever supervision was thin.

This supplier had grown through strategic mergers and acquisitions into one of the country’s largest industrial lumber wholesalers and custom wood-packaging operations, with more than 30 facilities nationwide. Growth by acquisition brought capacity, but it also brought inconsistency: management processes were inefficient, supervision varied site to site, and production delays surfaced wherever the operating discipline was weakest. The problem was structural, not local.

At Site 1, the symptoms were stacked on top of one another. Management systems were inadequate, active supervision was largely absent, the management structure was poorly defined, and planning and scheduling were inefficient. The consequences showed up directly in the numbers: on-time delivery ran below 80%, and labor costs were consistently over budget.

Site 2 told a different version of the same story. Staffing shortages drove frequent schedule break-ins and disrupted production flow, the site consistently missed its budgeted margins, and it could not pull its weight in the broader production network, which created bottlenecks at other facilities that depended on it. Leadership did not need a one-time cleanup at either site. It needed a management operating system that would run the same way on every shift and could then be repeated across the rest of the network.

The Diagnosis

Six structural gaps producing the same outcome from six directions.

Supervision that was present but not active

Weak, inactive supervision sat on top of a poorly defined management structure, so problems were observed rather than owned and corrected on the floor.

No structured management processes

The sites lacked structured management processes, leaving execution to vary with whoever happened to be running the shift.

Scheduling that delayed production

Ineffective planning and scheduling practices pushed work out of sequence and delayed production, compounding labor waste.

Staffing levels that broke the flow

Inadequate staffing levels caused frequent schedule break-ins and production-flow disruptions, leaving equipment underused and margins missed.

Lost time draining productivity quietly

Unidentified lost-time sources quietly eroded productivity, because no root-cause discipline was in place to surface and remove them.

Decisions made without data

Insufficient data visibility left managers unable to lead proactively, reacting to outcomes instead of steering the work in real time.

What POWERS Did

Standardized management across an M&A-built network to cut cost and hold delivery.

POWERS started by building a common foundation across the sites: standardized management tools running on the Plan Actual Variance Action (PAVA) system, which let managers steer operations hour by hour with real-time visibility, paired with structured daily and weekly meetings that put the right data in front of leaders so they could act proactively rather than after the fact. With that operating system in place, the site-specific work could move in parallel.

At Site 1, POWERS introduced a new planning and scheduling process that ran end to end, from cutting through building to shipment, using job packets to ensure the correct quantities were built at the right time with the appropriate labor allocated. That tightened timelines and stripped out labor waste at its source. At Site 2, the focus shifted to staffing and equipment efficiency: staffing levels were adjusted to support maximum equipment utilization, and a root-cause-analysis initiative was run to identify and eliminate the lost-time sources that had been draining productivity.

A third site extended the program further. POWERS designed a new plant layout that freed up 5,000 square feet of production space and improved material flow without adding resources, and refined on-the-floor data collection so performance could be tracked down to the individual item and labor resource. Together these changes turned inconsistent, M&A-inherited operations into a repeatable management discipline, and that repeatability is what allowed the tools and processes to be deployed across 20 additional sites.

The Full Result

Six measurable gains, earned by standardizing management across the network rather than adding capacity.

$500K
Annualized Savings

Standardized management systems cut labor waste and lost time across the sites, converting inconsistent operations into $500,000 of recurring annual value.

100%
On-Time Delivery

Once Site 1 ran planning and scheduling on job packets with hourly PAVA visibility, delivery moved from below 80% to landing every order on time.

12 pts
Labor Cost Reduction

At Site 1, allocating the right labor to the right work at the right time pulled labor costs down 12 percentage points as a share of sales.

12 pts
Gross Margin Gain

At Site 2, correcting staffing and equipment utilization lifted gross profit margin to 12 percentage points above budgeted expectations.

20%
Network Contribution

Site 2's share of the lumber other facilities needed rose to 14% and reached 20% after the project, relieving bottlenecks across the network.

5,000 sq ft
Floor Space Freed

A redesigned plant layout at a third site opened 5,000 square feet of production space and improved material flow without adding any resources.

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