How Electrical Distributors Reduce Inventory
Costs & Still Provide Exceptional Service
Today’s end user storerooms stay lean for product lines with usage needs that are difficult to predict. Electrical product manufacturers and distributors have also reduced inventories on items that are infrequently ordered.
Electrical power fuses and electrical replacement parts are good examples. When electrical distributors need to fill a customer’s fuse order due to a blown fuse caused by motor overload or power transformer short circuit, they can rely on an independent electrical supplier who is authorized and works cooperatively with the manufacturers and aggressively buys and stocks these MRO items and related equipment.
Not having to carry the cost and invest resources storing these slow-turn parts keeps distributors lean and profitable. Consolidating these purchases with a reliable independent electrical supplier also fills a gap to eliminate lead times in the supply chain and improves customer service and retention leading to stronger relationships and follow-on sales. Before choosing a “Need it Now” supplier, distributors should ask some key questions.
1. Is your current source a partner or competitor? When an end user faces a critical power outage or other emergency, a distributor can call a trusted factory authorized independent supplier for fast turnaround without concern for losing the customer to a competitor.
2. Does your supplier sell 100% tested products? Do they test and document every unit when it comes in the door and then again before it leaves? If they recondition the unit, do they use industry best practices and technical standards?
3. Is the independent supplier’s inventory deep and wide enough? to enable their distributor partner to stock less of slow-turn product lines? Does your independent supplier have online and mobile inventory tools to make their warehouse a seamless extension of your own wholesale or distribution center?
4. Do your manufacturer suppliers already trust the independent supplier? Most manufacturers embrace these suppliers for filling supply chain gaps and supporting their franchise distributors and end users.
5. When emergency shutdowns occur, does your independent supplier respond 24/7 and ship replacement orders within 24 hours? Compare that to manufacturers lead times of 8 to 12 weeks for vintage equipment and hard-to-find parts.
6. Does your independent supplier deal in “gray market” products? Independent suppliers with sanctioned manufacturer agreements don’t sell “unsanctioned” new electrical equipment or undermine pricing structures.
Professional Electrical Apparatus Recycling Certification
Through its Technician Certification Program, PEARL – the professional organization of companies that supply quality reconditioned and remanufactured electrical equipment – provides individuals the opportunity to become recognized as a Certified Electrical Equipment Reconditioning Technician.
Director, Business Innovation.
Electrical Marketing, LLC
CONTACT US: 856.381.7834
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