HVAC Industry Client – $16M+ Savings Identified

HVAC Industry Client – $16M+ Savings Identified

A leading HVAC installation company engaged Synergos Strategies to evaluate spend, vendor contracts, and product categories across its Parts & Materials and Equipment portfolios.

Challenges:
Fragmented supplier base, inconsistent pricing, and limited purchasing leverage across high-volume categories.

Approach:
Executed a comprehensive sourcing redesign, optimized vendor mix, strengthened rebate structures, and deployed structured RFQs to improve pricing transparency and category control.

Outcome – Year 1 (Parts & Materials):

  • $5M in validated savings identified through structured RFQs and supplier realignment
  • Expanded and optimized rebate programs delivering recurring value
  • Enhanced category strategy and pricing discipline through improved negotiations

Outcome – Year 2 (Equipment Procurement):
The client had maintained a longstanding relationship with a single equipment vendor. Synergos Strategies conducted a market analysis, benchmarked pricing, and introduced competitive bids for the equipment portfolio. This work identified more than $11M in potential savings, driven by:

  • Pricing harmonization and SKU standardization
  • Strategic supplier diversification and competitive pressure
  • Long-term agreements aligned with forecasted volumes

Additional Examples:

  • Multi-site operator: centralized procurement, supplier consolidation, accelerated RFQ cycles
  • Field operations: inventory optimization, improved forecasting accuracy, enhanced service levels
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