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