Graybar Canada Blog

How the Supply Chain is Evolving to Reduce TCO

March 2, 2015

Customers are looking to reduce their Total Cost of Ownership (TCO) when purchasing products. Before purchasing, they look at what the distributor offers in terms of Facility Solutions, Financial Values, Supply Chain Management, Operational Efficiencies and Technical Support. 

As a leading distributor, Graybar Canada offers competitive sales solutions that reduce the End User’s TCO. Some of these solutions are:

Warehousing
Warehousing takes the form of tasks performed by the distributor to ensure the materials are ready for use. Kitting is one form of warehousing, where multiple SKUs of a repeated order are consolidated for easy ordering and pickup. Staging is another form of warehousing that is available when the kits – no matter what size – are prepared for delivery to the site.

Vendor Managed Inventory
Graybar Canada will perform a “Crib Crawl” of the End User’s warehouse. This is essentially a thorough look through the warehouse to take an audit of their inventory. Then, obsolete items, duplicate items, and OEM (original equipment manufacturer) parts are identified so they can be updated or standardized. Graybar Canada then monitors and manages a Warranty Recovery Program to ensure items under warranty are not disposed of prior to warranty expiry. The End User’s inventory is now treated as an extension of Graybar Canada’s warehouse. They will monitor usage, recommend min/max levels and provide detailed customized reporting to the End User.

Reduction of Transaction Costs
Transaction costs can be reduced through digital solutions including EDI transactions, electronic storefront, electronic funds transfer, customized reporting, and consolidated billing (multiple POs per invoice to facilitate easy approval).

What else is the End User looking for from their Distributor?
End Users are looking for a long-term, mutually beneficial partnership. Graybar Canada takes pride in transparency and accountability, cultivating trust and respect between Distributor and End User; and maintaining a partnership.

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