Within Rexel Industrial Solutions (RIS), we provide our customers with the products they require. Our Purchasing Teams strive to meet all needs, leveraging a global network of supply partners built over the past 40 years.
RIS handles the purchase and issue of all site MRO, PPE, consumable journey, janitorial, VMI products, and tail-end spend categories. We also manage MRO spot buy requirements for non-stock or one-off purchases.
Rexel Industrial Solutions’ product procurement strategy focuses on several key elements to ensure efficiency, cost-effectiveness, and alignment with our customers needs.
SUPPLIER RELATIONSHIPS & RISK MANAGEMENT
Building strong partnerships with reliable suppliers ensures quality products and competitive pricing through long-term agreements and collaboration. By diversifying suppliers and maintaining contingency plans, RIS effectively identifies and mitigates supply chain risks, ensuring continuity and resilience.
MARKET ANALYSIS & CUSTOMER-CENTRIC APPROACH
Conducting thorough market research helps identify emerging trends, demands, and technologies, enabling RIS to select products that meet both current and future customer needs. Aligning product offerings with customer requirements supports overall business goals and enhances customer satisfaction.
COST MANAGEMENT & SUSTAINABILITY
RIS optimizes procurement costs through bulk purchasing, negotiating favorable terms, and leveraging economies of scale. At the same time, sustainable practices are incorporated by sourcing eco-friendly products and partnering with environmentally responsible suppliers to reduce environmental impact.
TECHNOLOGY INTEGRATION
Leveraging e-procurement tools and data analytics enhances decision-making and streamlines procurement operations. These technologies improve efficiency, transparency, and responsiveness across the supply chain.
PROCUREMENT STRATEGY DEVELOPMENT
By focusing on key areas such as supplier collaboration, market insights, cost control, and sustainability, RIS develops a robust procurement strategy that supports operational goals and drives long-term success.
OPERATIONAL EXCELLENCE & COMPETITIVE POSITIONING
Through effective procurement management and continuous improvement, RIS enhances operational efficiency and strengthens its competitive positioning in the market, delivering greater value to customers and stakeholders.
AI significantly enhances Rexel Industrial Solutions’ procurement strategies, leading to improved efficiency, cost savings, and better decision-making.
AI-DRIVEN DATA ANALYSIS & INSIGHTS
RIS leverages AI algorithms to analyze procurement data, uncovering trends, patterns, and anomalies that enhance demand forecasting and supplier performance evaluation. Predictive analytics further enable accurate forecasting of future procurement needs by considering historical data and market trends, allowing for proactive and informed purchasing decisions.
SUPPLIER SELECTION & RISK MANAGEMENT
AI tools evaluate suppliers based on performance metrics, reliability, and compliance with sustainability and regulatory standards. This comprehensive assessment supports better supplier selection and relationship management while identifying and mitigating risks related to suppliers, market fluctuations, and geopolitical factors to ensure supply chain resilience.
AUTOMATED PROCUREMENT PROCESSES
AI-driven automation streamlines key procurement activities such as purchase order creation, invoice processing, and contract management. By reducing manual effort and minimizing errors, these tools increase operational efficiency and accelerate procurement cycles.
COST OPTIMIZATION & NEGOTIATION STRATEGIES
Through detailed analysis of spending patterns, AI identifies opportunities for cost savings by suggesting alternative suppliers or products. This insight, combined with enhanced negotiation strategies powered by AI, helps RIS optimize procurement budgets while strengthening supplier relationships.
ENHANCED COLLABORATION & ALIGNMENT
AI-powered platforms facilitate seamless collaboration between procurement teams and other departments, ensuring alignment with overall business objectives. Improved communication and data sharing foster more cohesive decision-making and strategic planning.
STRATEGIC PROCUREMENT DECISION-MAKING
By integrating AI insights across data analysis, supplier evaluation, and market trends, RIS enhances its strategic procurement capabilities. This enables more informed, proactive purchasing decisions that support operational goals, drive efficiency, and maintain competitive advantage.
INVENTORY MANAGEMENT
Inventory management focuses on tracking stock levels, orders, sales, and deliveries, providing real-time visibility into inventory status. This helps business manage their supply chain effectively.
Advanced analytics tools aid in forecasting demand, optimizing stock levels, and identifying trends, enabling informed purchasing decisions. Managing relationships with suppliers timely replenishment and better terms based on purchasing patterns.
Integration with Enterprise Resource Planning (ERP) systems allows for seamless data flow across various business functions. Automated reordering processes trigger when stock levels fall below a certain threshold, reducing the risk of stockouts.
OBSOLETE PARTS
A good Stores Management System aids to avoid obsolescence. Common reasons for obsolete parts include parts being superseded, plant modifications, vendor changes in product specifications, spot actions to overcome situations, and incorrect requisitions by engineers.
Avoidance requires a cross-functional team to review stocked items that have not moved over a certain period. This includes engineering to advise if the item is still required, finance to check if the goods have accrued within a provision, and RIS to verify if the goods can be returned to the supplier.
SUCCESS STORY: CUSTOMER DECOMMISSIONING PROJECT IN 2023
In 2023, a customer decommissioning project identified 9,000 parts as obsolete and no longer required. Spare parts were picked, removed from stores/offsite storage, and disposed of. Parts were discontinued from SAP and marked as “do not order”.
The project resulted in a book value reduction of almost €11.5 million in stock value. RIS negotiated the sale of parts to vendors, generating funds of €130,000. Selling items instead of dumping them resulted in cost avoidance of €57,660, presented as soft savings to the site.
The project also provided environmental benefits by avoiding disposal, increased space on-site, and reduced offsite storage costs by €97,000 for 2024, along with reduced cycle counting for 2024.
COMPLIANCE WITH INDUSTRY STANDARDS
RIS ensures strict compliance with industry standards and regulations, such as ISO and OSHA guidelines, by implementing best practices, policies, and procedures for the storage and handling of critical spare parts. Advanced inventory management systems monitor storage conditions, locations, and handling processes to maintain optimal environments—such as temperature and humidity control—protecting sensitive components and ensuring parts are readily accessible when needed.
Employees are thoroughly trained on safety protocols, compliance requirements, and proper procedures, reinforcing the importance of adherence to standards. Routine inspections, audits, and risk assessments of storage facilities help identify potential hazards and ensure corrective actions are taken promptly. Standard Operating Procedures (SOPs) guide safe and compliant practices throughout receiving, storing, and retrieving parts, while supplier compliance guarantees that all parts meet industry and regulatory benchmarks.
Vendor Managed Inventory (VMI) is a supply chain management method where the supplier manages, inventory levels at the customer’s location. This leads to optimized inventory levels, reduced excess inventory, and lower inventory carrying costs.
IMPROVED INVENTORY MANAGEMENT
VMI reduces excess inventory and minimizes out-of-stock situations by allowing suppliers to monitor and manage inventory levels for their customers in real-time.
INCREASED EFFICIENCY
VMI streamlines fulfilment processes and reduces manual work by automating order creation, invoicing, and payment processes. This frees up staff time and reduces the risk of errors.
BETTER RELATIONSHIPS
VMI fosters better relationships between suppliers and customers through improved communication and trust. By sharing information and collaborating on inventory management, suppliers and customers can build stronger and more effective partnerships.
LESS OUT OF STOCK SITUATIONS
VMI ensures the customer never runs out of stock by having the supplier monitor inventory levels and maintain optimal stock. This leads to higher customer satisfaction and increased sales.
REDUCED MANUAL PROCESSES
VMI eliminates the need for manual inventory checks and ordering, reducing the risks of errors and freeing up staff time for more value-added activities. It automates the ordering process with suppliers, ensuring that inventory levels are maintained at optimal levels and that stockouts and overstocking are avoided.