WACO Value Added
Consolidation and Leverage Solutions
Procurement at the typical large corporation spends 80% of their time on 20% of the spend of Maintenance Repair & Operating Supplies. In addition, filter spends are often spread over 100-200 suppliers resulting in no leverage over total filtration costs and service levels.
When procurement attempts to consolidate their filter spend they encounter several obstacles in the typical RFP process.
- Filter databases seldom accurately reflect what is in use by your sites. Quoting from the current database without the benefit of knowing what is currently in use is a waste of Procurement staff's valuable time.
- Form and fit are not sufficient indicators of a filters performance. Since there is no industry standard for nominally rated retention specifications and dirt holding capacity filters with the same form and fit will not necessarily perform similarly in the same application. Therefore, procurement cannot access if a proposed filter will perform as well as the existing filters. The specifics of the application and often testing are critical to determining the most cost effective filter solution, without which it is irresponsible to propose alternatives.
- Cost Savings are needed now but the evaluation and implementation can take 6-12 months! With the demands currently facing you and your plant staffs, requests for proposal and filter evaluations can be extremely time-consuming. Only with in depth site surveys by qualified filtration specialists and the willingness to test alternatives can cost savings be identified and realized but this all takes time and poses risk that the alternatives proposed will not achieve the desired performance results and cost savings
Waco developed FIMS, (Filter Inventory Management & Solutions) to address these problems. FIMS provides rapid implementation, typically 60-90 days as we provide the same product you are using today. We reduce capital tied up in inventory while providing guaranteed documented cost savings year over year. Waco helps companies with multiple sites take advantage of the benefits and savings resulting from filter supplier consolidation.
Waco assumes the customers' burden of analyzing your inventory levels and filtration processes with the objective of generating significant cost savings. By working collaboratively with its customers, Waco can reduce the cost of inventory, lower transaction costs, and improve the efficiency of the customers' filtration processes while guaranteeing a substantially lower total cost of filtration.
Waco launches the FIMS program with analysis of the customers' existing inventory and we study your specific applications, testing for the most cost effective filter solution in order to propose alternatives. Only with in depth site surveys by qualified filtration specialists and the willingness to test alternatives can cost savings be identified and realized.
Following the analysis stage, Waco will purchase existing filter inventories, manage consignment inventory onsite or dedicated inventory in Waco facilities. Then Waco experts evaluate existing filtration processes to uncover opportunities for reducing the cost of filter components and filtration operations.
Waco takes pride in stocking the "Right Product at the Right Time". Purchasing replenishes inventory daily for scheduled suppliers. The order cycle is typically no longer than one week and may be as often as daily. Drop ships and specials are ordered daily. Customer emergency needs are responded to immediately. Waco consistently exceeds 98.8% on time shipments.
- The same product you are using today so we can implement rapidly.
- Waco buys back inventory, reduces your surplus and determines the appropriate consignment and/or designated inventory levels to insure you get the right product at the right time.
- GUARANTEED cost of filtration savings year after year.
Assuming a $2,000,000 spend and $100,000 of filters in stores three year savings of $500,000 are attainable.
- Customer database rarely reflects what us actually used
- Greater cost savings is realized from understanding the application and testing alternatives that can produce savings far greater than unit price savings
- Restricted channels of filter distribution result in a suppliers inability to buy product outside their channel at a competitive level and since filters are not a commodity matching specs does not mean the filter will perform like the existing product therefore proposing substitutes is not a valid comparison and quoting same product rarely produces overall savings as the exclusive channel holds the pricing leverage on their product
Market baskets do not reflect the entire spend nor do they necessarily reflect actual usage year to year as upsets, discontinued items or change outs that occur less frequently than annual will show theoretical not guaranteed savings