Wajax Industrial Components launched its Documented Cost Savings program in 2005 to record the cost savings that our customers were realizing as a result of our value-added services. We provide our customers with strategies for ongoing cost-reduction, inventory rationalization and process improvement.
The programs are developed to meet each customer facility's local needs, while creating multi-facility initiatives to address our customers’ national corporate objectives.
Since its launch in 2005, the program has documented over $30 Million worth of customer savings. To date, over 4,000 cost savings initiatives have been realized across more than 250 different companies.
Typical initiatives include:
- Standardization of brands across customer facilities to eliminate duplication and reduce number of SKUs
- Implementation of inventory tracking software systems between facilities to track and reduce surplus inventory
- Consolidation of shipments on store inventory
- Adaptation of min/max levels to the frequency of shipments versus usage to prevent stock-out situations
Process Improvement Savings
- Consolidated invoices sent at a set interval
- Use of electronic transactions like electronic data interchange (EDI) or electronic funds transfer (EFT) to eliminate manual steps in the receiving, invoicing and payable process
Unit Cost Savings
- Replacement of an item by an equivalent one of a different brand in order to reduce the purchase price
- Replacement of an OEM item by an equivalent one sourced by Wajax Industrial Components in order to reduce the purchase price and provide much shorter delivery lead time