Identifying Operating Cost Savings Opportunities
In today’s business, the relationship between two companies demands far more than simply buying and selling products and services. At Kendall Electric, we fully understand that the relationship must become a partnership and we are dedicated to helping our customers find ways to improve efficiencies and lower operating costs. We will accomplish this by working with our customers to completely analyze their inventory, material usage, and procurement process.
Inventory analysis is very often the first step in the storeroom partnership process. A Kendall Electric employee will work with the appropriate customer personnel to compare actual material usage with existing inventories in both the customer’s facility as well as our facility. The analysis is designed to identify redundant inventory, surplus material, obsolete items and critical use items, as well as other opportunities for cost reductions.
Material Procurement Process Analysis
A thorough review of the material procurement process will be studied. The analysis will include all aspects of the process by which material is sourced, requisitioned, purchased, communicated, documented, received, handled, stocked, and disbursed. The analysis will help identify steps in the process which might be streamlined, improved, or eliminated.
Process Analysis We will examine the paperwork flow in receiving, process, and invoice payment procedures. The appropriate customer personnel and a Kendall Electric employee can identify any opportunities that would improve productivity and lower transaction costs.
Customer Driven Purchasing Procedures and Product Identification
Accounts Payable personnel typically handle one invoice at a time, matching it to a specific receiving report and processing it for payment. To reduce the work load required by our customers’ Accounts Payable Departments, Kendall Electric can accumulate transactions on a weekly or monthly basis and prepare a "Summary Invoice" which documents all the transactions for that period. This allows our customers' Accounts Payable Departments to handle multiple purchase transactions via a single process. Summary Billing reduces paper and processing time by utilizing batch processing instead of handling, matching, and processing multiple loose invoices.
Customized Computer Cross Referencing
Kendall Electric has the system capability to simplify order processing by electronically tying the part numbers of the customer, manufacturer, and distributor. This process helps ensure accuracy in the entire process of communication and order entry, processing, shipping, and receiving.
Packing Lists and Invoices Identifying Customer Part Numbers
In order to reduce the time required to receive stock and invoice, Kendall Electric can display customer part numbers and product descriptions on all shipping and invoice documents. We can also offer customer specific comments, and descriptions.
Long Term Pricing Agreements and Contracts
In order to free up time spent gathering price quotations, Kendall Electric can produce a customized material pricing agreement that will provide price stability for a specific period of time. These pricing agreements may cover specific products, manufacturers, or specific catalog numbers.