Inventory Management Savings.key

INVENTORY MANAGEMENT SAVINGS
R.G. Brewton strives to establish long term relationships with its clients. Since becoming an
integrated supply services company, we’ve worked diligently to generate savings for clients over
six, eight, ten, and even fourteen year periods. Where most integrated supply contracts see
significant savings in the short term, many integrators and manufacturers struggle to find
savings over the long-term. It has been our experience that the tight integration of our systems
in combination with the trust our on-site teams foster enable long term savings opportunities for
our clients. Below are two graphs that are illustrative of the hard savings value we’ve been able
to deliver to our clients over time.
Product Improvement Savings
$500,000
$475,000
$450,000
$420,000
$400,000
$350,000
$300,000
USD
$240,000
$250,000
$200,000
$125,000
$150,000
$135,000
$110,000
$100,000
$50,000
$-
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
● Product improvement savings occur when an item the client uses can be replaced by a
less expensive or more efficient one, after the alternative item is successfully tested as a
substitute for the original one. Greater efficiency is captured in a usage ratio that
describes how much longer the new item lasts relative to the original.
● In this instance, we saw lower volumes of Product Improvement Savings in years one
and two than in years three through six. The lower early volume is attributable to the
quantity of pre-existing inventory, the client’s comfort with allowing our team to make
product change recommendations, and the knowledge our team had of the client’s
business.
● After year two, and following an increase in production, our client saw a considerable rise
in product improvement savings as a result of suggestions our team made. It is through
fostering strong relationships and working firsthand with our clients everyday that we are
able to help achieve these kinds of savings.
$500,000
$475,000
$450,000
$405,000
$400,000
$400,000
$350,000
$300,000
$300,000
$240,000
USD
$250,000
$195,000
$200,000
$150,000
$100,000
$50,000
$-
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
● This graph illustrates what happens when our teams manage client data in relationship
to changing production levels.
● Years 1 through 4 inventory reduced a combined total of 37% while production levels
increased by 67%.
● Year 5: When production levels fell by 20% we were able to mimic this with an
additional decrease of 20% in inventory during the same calendar year.