Case Study: Understanding Real Costs To Improve Competitiveness

A company improved its bidding process and sales by accurately assessing product costs.

September 1, 2020

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Client Problem:

The client was uncompetitive in bidding for jobs despite having a superior product and considered selling an unprofitable business segment.

Triton Leadership Group (TLG) Actions:

Implemented integrated cash flow and debt covenant forecasting processes.
Performed an in-depth analysis of direct and indirect costs.
Interviewed business leaders to understand cost drivers.
Developed a cost allocation model for each indirect cost item.
Presented results to leadership and the Board of Directors.
Documented and transitioned the model to the finance organization.

Outcome

Realized the business segment was profitable and ceased discussions on selling it.
Adjusted bid prices based on real costs, leading to increased sales and maintained margins.

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