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
Building strong partnerships with suppliers to ensure reliability, quality, and competitive pricing through long-term agreements and collaboration.
MARKET ANALYSIS
Conducting market research to identify trends, demands, and emerging technologies, helping select products that meet current and future customer needs
COST MANAGEMENT
Optimizing procurement costs through bulk purchasing, negotiating favourable terms, and leveraging economies of scale.
SUSTAINABILITY
Incorporating sustainable practices in procurement, such as sourcing eco-friendly products and working with environmentally responsible suppliers.
TECHNOLOGY INTEGRATION
Leveraging e-procurement tools and data analytics to enhance decision-making and streamline operations.
CUSTOMER-CENTRIC APPROACH
Aligning product offerings with customer requirements to support overall business goals and enhance customer satisfaction.
RISK MANAGEMENT
Identifying and mitigating supply chain risks by diversifying suppliers and maintaining contingency plans.
By focusing on these areas, RIS aims to create a robust procurement strategy that supports operational goals and enhances competitive positioning,
AI significantly enhances Rexel Industrial Solutions’ procurement strategies, leading to improved efficiency, cost savings, and better decision-making.
DATA ANALYSIS AND INSIGHTS
AI algorithms analyse procurement data to identify trends, patterns, and anomalies, aiding in demand forecasting and supplier performance evaluation.
SUPPLIER SELECTION MANAGEMENT
AI evaluates suppliers by analysing performance metrics, reliability, and compliance, enabling better supplier selection and relationship management.
AUTOMATED PROCUREMENT PROCESS
AI-driven tools streamline procurement processes like purchase order creation, invoice processing, and contract management, reducing manual effort and errors.
COST OPTIMIZATION
AI identifies cost-savings opportunities by analysing spending patterns and suggesting alternative suppliers or products, optimizing the procurement budget.
RISK MANAGEMENT
AI assesses risks associated with suppliers, market fluctuations, and geopolitical factors, helping develop contingency plans and mitigate supply chain risks.
ENHANCED DEMAND FORECASTING
AI models improve demand forecasting accuracy by analysing historical data, market trends, and external factors, aligning procurement strategies with actual demand.
SUSTAINABILITY AND COMPLIANCE MONITORING
AI tracks supplier compliance with sustainability and regulatory standards, ensuring procurement practices align with RIS’ environmental and ethical commitments.
IMPROVED COLLABORATION
AI-powered platforms facilitate better collaboration between the procurement teams and other departments, ensuring alignment with overall business objectives.
PPREDICTIVE ANALYTICS
AI provides predictive analytics to forecast future procurement needs based on historical data and market trends, enabling proactive strategic purchasing decisions.
ENHANCED NEGOTIATION STRATEGIES
By leveraging AI, RIS enhances its procurement strategies, leading to greater efficiency, cost savings, and improved supplier relationships, ultimately contributing to overall success and competitiveness.
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 compliance with industry standards for the storage and handling of critical spare parts through best practices, policies, and procedures.
Adherence to relevant industry standards and regulations, such as ISO standards and OSHA guidelines, ensures practices meet or exceed required safety and quality benchmarks.
Advanced inventory management systems track storage conditions, locations, and handling procedures for critical spare parts, maintaining optimal storage conditions and ensuring parts are easily accessible when needed.
Proper storage conditions, including temperature and humidity control, protect sensitive components from environmental factors. Employees receive training on best practices, safety protocols, and compliance requirements, ensuring they are knowledge about proper procedures and the importance of compliance.
Routine inspections and audits of storage facilities ensure compliance with safety and quality standards, identifying potential issues and allowing for corrective actions. Standard Operating Procedures (SOPs) outline steps for safe and compliant practices, including receiving, storing, and retrieving parts.
Risk assessments identify potential hazards associated with the storage and handling of critical spare parts, allowing for measures to mitigate risks and enhance safety. Supplier compliance ensures parts meet industry standards and regulatory requirements.
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.