Preventative Maintenance Program Delivers $40M in Annual Cost Reduction for Industry-Leading Retailer

A National retail conglomerate operating hundreds of store fronts and distribution facilities nationwide

Direct Annual Savings
Annual Spend Reduction


In the past year, our client’s total network cost for maintenance exceeded $330M CAD.  This was part of an undesired trend upwards for seven consecutive quarters! Three spend categories accounted for more than 80% of the total costs: Utilities, maintenance, and On-Demand Work Orders. On-Demand Work-Orders, roughly $53M of annual spend, was determined to have the greatest opportunity for improvement and therefore became the focus of further analysis.


Partnering with both local and corporate client teams, TPG conducted a rapid assessment of current spend categories and delivered on several objectives:

  • Prioritized list of opportunities targeted for cost-optimal decision making
  • Quick Win Solutions with execution plan for near-term gains
  • Timing and resource requirements identified to execute on key opportunities
  • Comprehensive recommendations for future state processes, framework, and facilities management

Our insights provided the retailer with the direction to focus on reactive work-order volume and related spend through preventative/proactive maintenance and asset management.

Value Created

As a result of this initiative, our client enjoyed both immediate and long-term financial and strategic benefits:

  • $40M annual spend reduction through algorithm rewrite on cooler temperatures (kilo/hour)
  • $6.1M identified in annual spend reduction opportunities through preventative maintenance programs eliminating 8,404 work orders through 15 error-proofing mechanisms
  • Recommended enhanced organizational structure to enable and sustain continuous improvement with a ~ $9.1M 3 Year NPV

The success of this project led to a multitude of future engagements aimed at efficiency and optimization across the value chain.

Reduce recurring maintenance costs for long-term benefits