Asphalt and Concrete Profit Optimization Software
BidSmart, Asphalt and Concrete Profit Optimization software, computes the most profitable combination of mix designs, source locations, and plant sites. As production options increase, the scenarios to evaluate grow exponentially, requiring advanced computational engines. Most successful operators avoid the least profitable options, but that still leaves hundreds of options to evaluate.
BidSmart leverages advanced algorithms to evaluate all combinations of mix designs, plant locations, internal product and freight costs, and competitor pricing to recommend optimal bid pricing. The process takes minutes instead of weeks, eliminating the last-minute panic to meet bid deadlines. Customers improve team collaboration and reduce errors by using one platform to connect Quality Control, Accounting, Sales, and Operations.
Combined with Flow, suppliers who use BidSmart can also streamline the fulfillment of bids by using a single system to manage the order, fulfillment, and invoicing.
Bid Decision Criteria
- Mix Designs & Variations
- Plant Locations, Operating Cost Data & Constraints
- Potential Mobile Plant Sites
- Material Source Locations and Associated Product & Freight Costs
- Competitor Locations
- Configurable Business Rules
BidSmart for Small Producers
BidSmart enables small producers to substantially increase revenue and profit margin without sacrificing bid win rates.
Smaller producers' variables are usually quite dialed in. They may have one plant, one or two material sources, and just a few approved mix designs. Often, these producers will win the project bids that are in closest proximity to their plants. So why do they need BidSmart? BidSmart enables producers to maximize the bids they win by allowing them to compare their optimal bid scenarios with the next best competitive bids. We have found most small or medium-sized producers are pricing their bids based on their cost plus a standard margin, whereas they should be pricing it just below their competitors' bid, expanding their margin far beyond their standard.
BidSmart for Large Producers
BidSmart enables large producers with complex networks to make optimal decisions related to costs and pricing.
The larger the network of variables, the more opportunity exists for mathematical optimization. When choosing between two scenarios, the optimal one typically stands out. But when there are 200,000 scenarios, it is very difficult to discern the best, let alone the top 25. We believe that complexity creates opportunity. Larger producers usually source from multiple locations, produce from multiple plants or mobilize plants closer to projects, and have more acceptable mix design options. BidSmart allows these producers to optimize their networks, capturing the subtleties in each project’s cost savings, realizing arbitrage opportunities that only a computational engine can identify. These optimal decisions lead to winning more projects, focusing efforts on higher profit projects, and reducing risk in executing bids that are on the fringe of profitability. The net result is improved utilization, lower risk, higher predictability, and an increased profit per ton/yard by dollars, not cents.
Identify the best combination of raw and manufactured material source locations to minimize costs for all project stages.
Evaluate existing and theoretical mix design scenarios to help select the most profitable mix design that meets the project requirements.
BidSmart combines vast operational data and advanced algorithms to evaluate internal product & freight costs. Connect with your ERP and be confident that your cost assumptions are driving the best outcome.
Producers simulate competitors’ bid scenarios by inputting their competitive intel and assumptions. Quickly identify opportunities to increase standard profit margins without sacrificing win rates.
"For a long time, we overlooked the optimization of our material division because it was always outperforming the construction and paving divisions. BidSmart opened our eyes to dynamic bid pricing, which has been the largest contributor of EBITDA growth in the company."