2015 Activity and Sustainable Development Report2

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Lowering procurement costs is not only a question of reducing the purchasing cost of products. The Total Cost of Ownership (TCO) must account for other costs related to orders, delivery, billing, supply management, etc. Taken together, these costs can double the price of a product. Rexel therefore works across the entire supply chain, in partnership with its customers, in order to streamline these costs.

INVENTORY MANAGEMENT Vendor Managed Inventory (VMI) enables customers to save money. Rexel s expertise lies as much in the physical organization of warehouse inventory as it does in

restocking procedures, reporting adjustment, obsolescence analysis or min/max inventory level recommendation. Gexpro rolled out a new tool, OASIS Insight, intended to manage inventory and restocking management

for industrial customers or major worksites. Thanks to the reading of bar codes with a scanner or a smartphone, OASIS Insight manages inventory and can automatically replenish stock according to predetermined levels, regardless of products source. Rexel can thus ensure the reception and verification of all supplies on its clients worksites. Kitting, or the delivery of pre-assembled material, is another way for customers to save money, through better resource allocation and optimized procurement. Gexpro s QuickKits gather and label all necessary supplies for a given installation according to clients specifications.

LARGE PROJECTS Dedicated to large construction projects and major infrastructure programs, Rexel IPG (International Projects Group) provides customized services to optimize procurement and logistics management. As a partner of large engineering companies, they help lower their cost base through supplier consolidation, technical application assistance, project management solutions and logistics services. Rexel IPG has been executing more than 300 projects in 20 countries over the past five years. As an example, it has successfully handled supply of electrical material for various EPC (Engineering, Procurement, Construction) companies on the largest petrochemical project in Saudi Arabia, and is beginning the execution of a major LNG (Liquefied Natural Gas) project in the US for a leading North American EPC company. In 2015, Rexel IPG offered its customers a new solution, called IPG MAPS, to assist them in addressing operational challenges on projects in terms of schedule,

Reducing procurement costs

IMPROVING OUR CLIENTS PERFORMANCE