How a Building Supply Distributor Saved $1.2 Million with Propane Management Solutions

A leading U.S. building supply distributor, operating over 800 locations and supported by a fleet of 5,000 trucks and forklifts, faced mounting challenges with its propane procurement program. As the company expanded through acquisitions, its decentralized approach to propane supply management became increasingly fragmented, leading to inefficiencies, higher costs, and administrative burden.

Recognizing the need for a scalable and data-driven solution, the client partnered with Breakthrough to optimize its fleet fuel management strategy, resulting in $1.2 million in annual propane savings and the elimination of over 1,000 monthly invoices.

The challenges of decentralized propane supply management

Before partnering with Breakthrough, the distributor’s propane procurement was entirely decentralized, creating significant challenges for fleet operation management. Each of its 800 branch locations sourced propane independently from local vendors, resulting in a fragmented and inefficient system. This approach led to several critical issues:

Excessive Invoices: Processing thousands of invoices each month from hundreds of vendors created an overwhelming administrative burden, leading to delays, late fees, and frequent billing errors.

Lack of Oversight: Without centralized fleet monitoring, the company struggled to track propane purchases, consumption, and pricing across its branches, making it nearly impossible to identify cost-saving opportunities or create accurate budgets.

Inefficient Spending: The fragmented propane purchasing process prevented the company from leveraging its scale to negotiate favorable pricing, resulting in higher costs and numerous accessorial fees.

Recognizing the need for a centralized propane supply management system, the company sought a partner to bring clarity, control, and efficiency to its propane program.

Streamlining propane supply management with centralized solutions

To address the challenges of decentralized fleet fuel operations, Breakthrough implemented a comprehensive propane management program designed to consolidate vendors, simplify payments, and provide actionable data.

The program began by centralizing the distributor’s propane sourcing, reducing hundreds of local vendors to just two national suppliers capable of servicing 90% of the client's locations. This move immediately streamlined the fleet’s fuel operations, cutting down on monthly invoices and simplifying payments.

Breakthrough leveraged its market expertise to negotiate more favorable contracts and eliminate unnecessary accessorial fees. These efforts secured significant cost reductions, while ensuring a smooth transition. Breakthrough managed the onboarding process for each branch, confirming delivery schedules and tank requirements to maintain operational continuity without disruption.

To provide the necessary data and oversight, Breakthrough deployed its proprietary fleet fuel management software to audit every invoice. This system organized electronic documents, validated pricing against contract terms, and generated detailed fuel reports. These reports offered precise data on propane consumption by branch, empowering the client to build accurate budgets, identify irregularities, and apply for relevant tax credits.

Achieving cost savings and fleet efficiency

The strategic partnership with Breakthrough transformed the distributor's propane management program, delivering substantial financial and operational benefits:

• Saved $1.2 million annually on propane costs through vendor consolidation and optimized pricing.

• Eliminated over 1,000 invoices per month, reducing administrative workload and associated fees.

• Secured $25,000 in credits from corrected billing errors identified through invoice audits.

• Claimed thousands of dollars in tax credits under the Inflation Reduction Act using precise consumption data.

• Gained access to 13-month rolling purchase data, enabling accurate budgeting, trend analysis, and improved operational efficiency.

The new, streamlined program provides the data-driven oversight the client needed to control costs and improve efficiency. The ability to track consumption not only led to direct savings but also provided the historical data needed to detect abnormalities and create more accurate forecasts.

Sustainable fleet management for long-term growth

By moving from a fragmented, unmanaged system to a centralized, data-driven propane program, the building supply distributor achieved significant and sustainable savings. The partnership with Breakthrough not only reduced costs but also freed up internal resources, allowing the company to focus on its core business and continued expansion.

Breakthrough continues to audit invoices and provide detailed reporting, ensuring the distributor consistently receives fair pricing and capitalizes on every available efficiency. With a simplified and transparent propane program in place, the client is well-positioned to improve fleet sustainability, enhance operational efficiency, and support future growth.