Anixter's Supply Chain Solutions Help Retail Customer Open New Stores Sooner
Multinational retail corporation
- New store openings consistently delayed and over budget due to supply chain inefficiencies
- No specification or consistency for product and installation
- Evaluated systems in place, identified improvements to test
- Beta-tested overall supply chain plan
- Enhanced cabling installation timeframe
- Improved onsite inventory efficiency
- Minimized onsite shrinkage and sped up material consolidation
- Reduced labor costs, onsite material management and installation time
- Anixter is now recognized as an integral part of the customer’s ongoing projects
- Stores open 12 days sooner, amounting to $1.8 million in additional revenue per store
Opportunities for Improvement of Supply Chain Processes
After identifying two primary concerns—lengthy installation process and lack of product and supplier specifications—a multinational retail corporation requested Anixter evaluate their new store building process. Ultimately, the customer wanted to learn where costs could be cut and what efficiencies could be improved.
After the evaluation process, Anixter learned that not only were the customer’s store openings consistently delayed, but they were also coming in over budget. In fact, delays within the supply chain were starting as early as the onsite inventory process. In addition, the customer would bid store materials through contractors who would then obtain material from whomever they chose. The lack of specification and consistency regarding product and installation practices provided Anixter the opportunity to create a supply chain plan for the customer that could be used for all store openings moving forward.
Presentation of Anixter Solutions Save Time and Money
In addition to presenting an overall supply chain plan to the customer, Anixter was able to show the plan’s success through a proof of concept beta site. The site illustrated the ability to reduce the onsite inventory process from 14 days to just 48 hours by implementing an improved cabling installation timeframe. Anixter also kitted all voice, data and paging material and delivered it to the jobsite in lockable Mobile Mini containers, which greatly reduced material loss and improved inventory management. These time-saving solutions allowed the stores to open 12 days sooner than previous openings. Given the customer’s average revenue of about $150,000 per store per day, they are earning $1.8 million in additional revenue per store.
On top of this tremendous time savings of nearly two weeks, the customer has seen a significant labor cost reduction through improved onsite material management. Equally, onsite shrinkage was minimized, and material consolidation was sped up. The success of the project and customer satisfaction has resulted in Anixter working on additional projects at the customer’s corporate campus and data centers.