The Benefits of E$$
$50,000 /Year Stockroom
Reduced inventory cost of ownership - $6,000
Reduced acquisition costs - $7,500
Annual cost savings - $13,500
Recent studies have shown that the cost associated with the acquisition and possession of goods can often exceed the cost of the goods themselves. On average, such costs are 41.5% of the purchase price. That fact is leading more organizations to re-examine their procurement practices in an effort to streamline procedures and cut costs.
NorthEast offers a solution that addresses the cost of inventory procurement, while improving service...we call this solution "E$$" or "Electrical Supply Solutions."
How do we reduce total cost? Only 58.5% of the typical procurement dollar is spent on the material itself.
Working in partnership with management, purchasing, and production staff, NorthEast can help you realize significant cost savings. The process begins with a comprehensive review of your acquisition procedures and systems. Alternatives are then recommended to improve overall efficiency. These solutions can encompass revised order entry procedures, automated inventory management, EDI, customer-specific catalogs for easy re-orders, management reports and more. One thing is sure: NorthEast's E$$ will have a positive effect on your bottom line.
At NorthEast we rely on state-of-the-art tools and methods. For example, we can establish an inventory database for stockroom personnel. Customized to your needs, using your part numbers, escriptions and drawings, this system will automatically re-order when minimum quantities are reached. Allowing stockroom personnel to assume responsibility for stock replenishment eliminates redundant purchasing procedures.
Once an order is transferred to NorthEast's Central Distribution Center, it is picked, packed, and ready for shipment. This streamlined process simplifies procurement, eliminates stock-outs, and ignificantly reduces your transaction volume.
Using E$$, we can provide summary reports detailing usage by cost center, or by item, turn rate, dead inventory, and service levels.
A key benefit of NorthEast's E$$ is the ability to optimize your inventory mix. We review usage and determine the proper levels you should stock to meet your MRO or production requirements. Additional inventories can then be stocked at our Central Distribution Center. Whether you utilize min/max, Kanban, or a combination of both strategies, we can right size your inventory... Let NorthEast and E$$ do the work and show you the way to better inventory management!
Parts Management Agreement