HVAC Provider


A second-generation family owned HVAC supplier of equipment, parts and supplies with
distribution and retail locations was achieving negative net income year over year.
In addition to the financial performance, the company had moved into a “work out” scenario,
facing several bank restricted covenants and coordinating with a bank approved financial advisor.


The Client engaged ECS to perform a Fresh Eyes diagnostic for the overall operation
and utilize the findings to develop a strategic plan to implement effective change.

Phase 1


ECS & Client team - alignment of perceived areas of concern, approach and goals of program.
Discuss risks and potential constraints of success. Establish clear lines of communication and expectations.

Phase 2

Measure & Analyze

ECS conducted a Fresh Eyes diagnostic, as well as, one on one meetings to dive deeper into
operational and organizational pain points that were negatively impacting the company’s profitability.

Key Stakeholder Value Stream Mapping session – focused on client acquisition (production hours)
and the current processes in place. Identified, time, motion, pain points, and key areas of opportunity.

Phase 3

Develop Strategy

Developed a “road map” strategy, providing sequencing of opportunities, key goals and objectives (5); inventory reduction, accounts receivable, organizational structure, supplier discounts and rebates,
and base business growth and retention.

All strategies focused on a cost neutral, positive bottom line impact.

Phase 4


Priorities and processes were established through a comprehensive communication plan to all team members.

Retained to provide Advisory and On Demand support in both operations and HR to assist client team with execution of road map, as well as, continuous planning and development.


  1. 1

    Inventory reduction – performed sku rationalization and negotiated with
    suppliers to exchange slow moving inventory for faster moving and more
    profitable inventory, as well as key discounted sales to drive other lower
    moving skus out of the inventory.

  2. 2

    Reduced outstanding AR collections from 90+ to 1-60 days.

  3. 3

    Reallocated head count within organization, eliminating ineffective and
    redundant roles, refocused on leadership and sales.

  4. 4

    Prioritized discount and rebate opportunities to improve cash flow and profitability.

  5. 5

    Focused heavily on customer base that had not purchased within the past
    30 days to increase touches and sales opportunities.

Revenue vs Net Income Trend case study