Client Background
Our client, a leading insulation material wholesaler based in the Philippines, has an extensive distribution network across Southeast Asia. They mainly supply insulation materials for construction and industrial use, focusing on delivering reliable performance at competitive prices.
The Challenge
Despite strong market demand, the client faced a major pricing challenge.
High Middle Costs Affected Profitability
Due to logistics and multi-tier distribution, the intermediate costs were significantly high, making the final product price uncompetitive in the market. This pricing gap made it difficult for the client to close deals and expand their market share.
The Solution
To address the issue, our technical and production teams collaborated closely with the client to find a tailored solution that would improve both cost efficiency and product performance.
1. Product Formula Optimization
We modified the material formula to increase flexibility and resilience without compromising insulation performance. The new composition allowed the material to withstand higher compression during packaging and transport.
2. Compressed Packaging for Higher Volume Efficiency
We introduced a compressed packaging method, which significantly increased the loading quantity per shipment. This change reduced logistics costs per unit and optimized storage and shipping efficiency.
3. Maintaining the Same Middle Cost, Lowering Unit Cost
With the same overall transportation and distribution cost, the unit price of each insulation sheet decreased, allowing the client to offer more competitive prices in their market.
The Results
Enhanced Competitiveness
The new packaging and formula directly improved price competitiveness in both local and regional markets.
Client Feedback
“Large quantity effectively saves our costs, improves our market competitiveness, and effectively expands our market share.”
The client successfully increased sales volume and strengthened their position as a key player in the Philippine insulation market.
Key Takeaways
- Tailored product formulation can help reduce total costs.
- Packaging innovation improves logistics efficiency and competitiveness.
- Close collaboration between supplier and wholesaler delivers measurable business growth.
