The Ultimate KPI: A Better Experience For Your Customers When it comes to ‘class c’ supplies, the bulk of the cost isn’t in the product – it’s in the process. That includes the labor and cash needed to procure, stock, and manage hundreds (or thousands) of low-cost shop consumables. It also involves less tangible but often greater costs: the opportunities and value lost through over-stocking, over-processing, outages, and other forms of waste. Faced with pressure to increase speed, quality, and cost-competitiveness, many companies recognize the need to improve this notoriously fragmented and cumbersome area of the supply chain. But with limited resources, they often lack the capacity to change. This is where a supply chain partnership can bring value, enabling an organization to offload costs and burdens, usher in better processes and technology, and achieve business performance above and beyond what they could accomplish on their own. The impact is quantified with data and KPIs, but the real proof is in the end product. If the experience of your customers improves as a result of our partnership, that’s when we know we’ve been successful. WHY FASTENAL? IMPROVE WORKING CAPITAL When we move onsite, we sell down your current inventory and phase in our own. Moving forward, the inventory is on our books until the product is moved to the production floor – a dollar-fordollar improvement in working capital. WHAT DRIVES ORGANIZATIONS TO CONSIDER SUPPLY CHAIN PARTNERSHIPS? ASSET/COST EFFICIENCY Closer integration of activities may lead to reduction in transportation costs, handling costs, packaging costs, information costs, or product costs and may increase managerial efficiencies.
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