Case Studies

Achieved $22.9M (17.6%) in cost savings which resulted in $300M impact at sale

This work was done (not including VMI) in a market where prices are increasing for a HVAC and Plumbing Services firm with a nationwide portfolio of more than 70 branch locations.

PSS Role

  • Analyzed over $325M in spending to identify targeted sourcing opportunities
  • Managed sourcing process for 9 categories with roughly $129M in combined spending. Categories included:
  • HVAC and Plumbing Supplies
  • Wireless Telecom
  • Travel (Agency, Hotels, Air & Car Rental)
  • Direct Mail
  • Computer Supplies
  • Office Supplies
  • Office Equipment
  • Background Checks
  • Advised client or led supplier negotiations for each category
  • Analyzed purchase history on over 25,000 items

Outcome

  • Negotiated industry-leading pricing on $100M of spend on supplies
  • Achieved $22.9M (17.6%) in cost savings (not including VMI) in a market where prices are increasing
  • Incremental one-time and recurring VMI savings from transfer of inventory to distributors and outsourcing warehouse labor
  • Obtained supplier commitments to provide industry-leading pricing moving forward
  • Savings on other categories were as high as 35% (weighted average 10-13%)
  • Negotiated rebates of up to 7% from suppliers to ensure savings don’t get passed along to customers