CASE STUDY

The 2.3M SR Vendor Mistake

How M&H Contracting lost 11% of project value by choosing the wrong supplier—and how data could have prevented it

5 min read
Procurement Strategy

The Setup: Fast-Track Municipal Project

OPPORTUNITY

M&H Contracting wins a prestigious municipal project with aggressive deadlines and penalty clauses for delays. The pressure is on to deliver fast and cost-effectively.

SR21M
Project Value
18
Months Timeline
SR50K/day
Delay Penalty
$

The Fatal Decision: Lowest Bidder Wins

COST CUTTING

Facing budget pressure, M&H chooses EastBuild Solutions—the lowest bidder promising fast delivery. The decision seems smart: save money, meet deadlines.

The Warning Signs (Ignored)

No physical inventory verification

Unusually low pricing structure

Limited operational history

Vague delivery commitments

The Crisis: Everything Falls Apart

CRITICAL

Three weeks in, delays begin. March brings the devastating discovery: EastBuild isn't a supplier—they're a broker with no inventory.

The Damage

+11%
Project Cost Increase
SR2.31M additional cost
6
Weeks Delayed
SR2.1M in penalties

The Turnaround: Data-Driven Decisions

SOLUTION

M&H's CFO discovers Emdad Platform—pre-analyzed vendor data that reveals operational reliability at a glance. They pivot to DirectMat, a supplier with proven fundamentals.

DirectMat: The Right Choice

Key Metric ValueWhat It Means
Inventory-to-Sales Ratio 0.45 Real inventory to meet demand
Inventory Turnover 78x Efficient material flow
COGS as % of Revenue 96% True supplier, not broker

Key Takeaways: Never Again

Data Beats Intuition

Financial metrics expose broker vs. real supplier

Early Detection Saves Millions

Proper vetting prevents costly delays

Cheap Can Be Expensive

Lowest price often carries hidden costs

Technology Enables Speed

Platforms like Emdad accelerate due diligence

Don't Let This Happen to Your Project

Smart procurement starts with the right data. Make informed decisions that protect your bottom line.

Logolocation Northern Ring Road. Al Nakheel Dist. Riyadh, Saudi Arabia

Emdad Data Company

CR 1009050903

VAT 312340075200003

Follow Us

2025 Emdad Data Company. All rights reserved.