Construction

King Rose Construction: 10% off material cost by bringing purchasing back in house

Result King Rose Construction: validated outcome Verified
  1. 2,000+SKUs at baseline
  2. 150 → 3suppliers after consolidation
  3. 10%material cost reduced
  4. 16%purchasing labor reduced

Every figure was validated with the client.

Baseline

King Rose Construction provides general contracting services across New York City for clients including Columbia University, FedEx, GardaWorld and Converse.

The pandemic nearly halted work, and leadership responded by offshoring back-office functions, including purchasing. As business recovered and grew, that decision started to cost more than it saved: the purchasing process was slowing operations in the field, and the company could no longer hold competitive material costs. Purchasing had drifted from an operational capability into an administrative one.

What we did

  • Normalized what was being bought, reducing purchased items from more than 2,000 SKUs to 350, and suppliers from 150 to 3.
  • Ran competitive bid and negotiation with incumbent suppliers against that consolidated volume.
  • Leveraged spend to fewer suppliers, turning fragmented buying into real purchasing power.
  • Inventoried new SKUs so common items were on hand instead of ordered under pressure.
  • Eliminated dead stock and unused equipment tying up warehouse space and capital.

Implementation and adoption

The bigger change was organizational. We improved communication between purchasing and field operations, so buying decisions reflected what jobs actually needed and when. That alignment is what reduced rush fulfillment requests, the most expensive way any contractor buys.

Validated result

  • Material cost reduced 10%.
  • Purchasing labor reduced 16%, as a simplified catalog and supplier base cut transactional work.
  • Warehouse utilization improved 30%, after clearing dead stock and stocking the right items.
  • Fewer rush fulfillment requests, with common SKUs held in inventory.

The engagement started as a cost exercise and ended as an operating improvement: faster decisions, less firefighting, and a purchasing process the company runs itself.

“S2V was hired with the narrow goal of reducing our material cost, but they also went above and beyond and significantly improved our purchasing process, resulting in faster decision making. They are detail oriented, intelligent and reliable. We are extremely pleased with their work and highly recommend them.”

Yoel Borgenicht
President, King Rose Construction

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