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In today’s competitive building products marketplace, companies are under constant pressure to do more with less—delivering exceptional service, optimizing operations and preserving margins. While some leaders respond to these challenges with sweeping cost-cutting measures, a more sustainable strategy has emerged: embracing a continuous improvement (CI) mindset.
CI isn’t just a process; it’s a way of thinking. Rooted in manufacturing and quality control principles like Lean and Six Sigma, CI emphasizes incremental improvements across systems, processes and activities to achieve better outcomes over time. In the distribution world—where success often depends on efficiency, accuracy and customer experience—CI can be the difference between a company that merely survives and one that thrives.
Why Continuous Improvement Matters
Value creation is the end goal for any business, but how you get there matters. Traditional approaches to growth, such as cost-cutting after an acquisition, might deliver short-term gains but often erode culture and destabilize operations. Continuous improvement, on the other hand, promotes incremental, measurable changes that compound over time—building operational resilience, boosting margins and empowering employees.
Adopting a CI mindset means treating improvement as an ongoing strategic priority, not a one-off initiative. Each improvement sparks curiosity for what comes next, creating a regenerative cycle of progress. For building products distributors, this approach can significantly improve metrics such as on-time and in-full (OTIF) rates, order accuracy and operational efficiency.
The ABS Example: Metrics as a Catalyst for Growth
One recent example from Kodiak Building Partners underscores the power of CI in action. At American Builders Supply (ABS), a standardized set of metrics was implemented across the company along with a daily management process to check and adjust as necessary to meet established targets. Teams used Pareto charts to identify the highest-impact issues behind missed targets and where to focus collaborative efforts to address them.
The results were significant: profitability improved substantially as the organization aligned around clear goals and used data to guide decisions. This structured approach to problem-solving didn’t just fix isolated issues—it created a foundation for ongoing improvement and margin growth. Now, these principles are being extended to Kodiak’s door shop companies, piloting a similar system to drive consistency and value across the network.
Keys to a Successful CI Initiative
Implementing CI effectively requires more than enthusiasm—it demands discipline and structure. Here are three critical components:
(1) Define the Problem, Identify the Systemic Root Cause
Start with clarity and inspiration. A vague problem statement leads to vague solutions and uninspired team members. Whether addressing production delays, inventory inaccuracies or order entry bottlenecks, take the time to diagnose the systemic root cause. It’s critical to engage the people who perform the work at the location where the work is done. For instance, a recent analysis revealed that inefficient equipment layout—not a labor shortage—was the culprit behind missed production deadlines. Correcting the layout generated annual savings of $180,000.
(2) Tailor the Tactics
There’s no one-size-fits-all fix. The people who do the work should be the ones solving the problem. Also, pilot potential solutions that address the systemic root cause before rolling them out broadly, and tailor strategies to the unique root causes of each business. For example, a company dealing with repetitive order entry errors on purchase orders might benefit from text recognition technology (also known as optical character recognition, or OCR) to automate order entry, dramatically reducing these errors and freeing employees to focus on higher-value tasks.
(3) Measure the Results
Continuous improvement projects don’t end at implementation. The intended results need to be validated against the metrics within the defined problem and then standardized to check and adjust hourly, daily, weekly and monthly until ready for the next improvement to keep raising the bar on performance. In distribution, metrics such as OTIF, cycle times and order accuracy provide a clear lens into whether improvements are sticking, and where to check and adjust efforts.
Culture: The Real Differentiator
While process and data are essential, culture ultimately determines whether CI endures. Companies that build a culture of trust, curiosity and collaboration see the strongest results. When employees at every level, from executives to shop floor teams, feel empowered to problem-solve, CI becomes a shared mission rather than a top-down directive.
When building a CI culture, keep in mind data inspires more than mandates and data will set each of us free to innovate. Each person needs to be given the chance to understand the why, believe in the why, and become willing to support and engage in the why, paired with proof of its impact to accelerate adoption. Combine that with peer-to-peer benchmarking and knowledge sharing, and CI becomes part of daily operations—transforming improvement from isolated projects into a continuous, company-wide practice. This is exactly what Kodiak’s Building Up Individuals for Locally Driven (BUILD) Excellence CI development program is all about—creating a united team throughout the company of deeply rooted and inspired problem-solvers. In building up these leaders to speak a common CI language, they bring focus to seeing opportunities for improvement through a collaborative lens in every area of the business.
The Bottom Line
Continuous improvement is more than a tool—it’s a mindset that transforms obstacles into opportunities for growth. For building products distributors navigating tight margins, labor shortages and evolving customer demands, CI offers a path to sustainable success. When done right, it’s not about cutting costs—it’s about creating value for employees, customers and stakeholders alike.
– Article by Lance Grimm, senior vice president of continuous improvement at Kodiak Building Partners, where he leads initiatives that strengthen processes, empower teams, and drive sustainable growth across the organization. Learn more at kodiakbp.com.
