Alarm Dealer Saves More Than $1 Million With Anixter's Supply Chain Solutions

Alarm Dealer Saves More Than $1 Million With Anixter's Supply Chain Solutions

Summary

Customer

A Canadian security integrator

Challenge

Determining the most efficient and effective way to purchase product in order to lower overall costs

Solutions

  • Sourcing
  • Inventory management
  • Product enhancement and packaging
  • Kitting
  • Part number consolidation
  • Logistics

Results

  • Reduced inventory by 50 days 
  • A 50 percent reduction in working capital 
  • Cut four days off the average installation time 
  • Reduced repeat calls by 50 percent 
  • Increased same-day resolution by 5.6 percent
  • Direct labor productivity improved 4.6 percent 
  • Job location productivity improved 1.9 percent
  • Results • Reduced inventory by 50 days • A 50 percent reduction in working capital • Cut four days off the average installation time • Reduced repeat calls by 50 percent • Increased same-day resolution by 5.6 percent • Direct labor productivity improved 4.6 percent • Job location productivity improved 1.9 percent
  • Results • Reduced inventory by 50 days • A 50 percent reduction in working capital • Cut four days off the average installation time • Reduced repeat calls by 50 percent • Increased same-day resolution by 5.6 percent • Direct labor productivity improved 4.6 percent • Job location productivity improved 1.9 percent

A New Vision Forward

When a national security integrator took a close look at their internal business strategy and process, they realized that they needed to put their focus back on improving the service and products for all their customers and into generating new customers in their market. They started this improvement process by taking a holistic approach of considering ways to lower overall operational costs. They examined two areas of their business: the manufacturing of alarm panels in-house and the materials dispatching processes.

After reviewing their current process, they understood that to remain competitive they had to consider ways to increase efficiency and reduce costs, all while increasing working capital for operations.

First, they determined to make the shift from manufacturing their own panels to purchasing industry standard panels. Once they decided to make this move, they debated on whether to purchase directly from the manufacturer at a lower product cost or through a distributor who could provide better product availability and support.

Secondly, they wanted to reduce the amount of time it took to ready materials for installation and the number of truck rolls being dispatched due to insufficient materials. The integrator was currently managing the preparation, consolidation and dispatch of materials for field technicians across the country and experiencing excess field labor time and costs.

Cutting Costs Through a Streamlined Supply Chain

Anixter’s Supply Chain Solutions team completed a thorough supply chain assessment with the customer to uncover their process and evaluate potential efficiencies and cost-cutting solutions. The solutions they proposed were aimed to help the customer increase operational efficiency, better utilize working capital and ultimately reduce overall supply chain costs.

The solutions Anixter provided included:

  • Sourcing capacity and efficiency 
  • Managing inventory and carrying costs 
  • Product enhancement and readiness 
  • Reducing soft costs of processing transactions 
  • Kitting 
  • Part number consolidation 
  • Logistics

The solution the team proposed addressed the following: 

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Measurable Results

Anixter’s Supply Chain Solutions reduced the customer’s total cost of installation by 41 percent, despite product cost being 10 percent higher than purchasing directly from the manufacturer. Other measurable results of Anixter’s Supply Chain Solutions included a 50 percent reduction in working capital by reducing inventory by 50 days. Anixter’s solutions also helped improve the customer’s productivity by 4.6 percent for direct labor and nearly 2 percent for job location, ultimately reducing the average installation time by four days. As a result of improved productivity and processes, customer service also improved, decreasing repeat calls by 50 percent and increasing same-day resolution by 5.6 percent. With these new processes in place, the customer is able to cut costs due to inefficiencies and provide its labor force with the tools it needs to be productive, while providing better, more efficient service to end users.

Click here to learn more about Anixter's Supply Chain Solutions.