How a strategic partnership can help streamline your operation
April 1, 2021
By Doug Mensendiek | Director of Sales
By Doug Mensendiek | Director of Sales
|
If you aren’t focused on the Total Cost of Ownership (TCO), you can bet your competitors are.
Indirect costs make up much more of the full price of common items than you might think. That’s why it’s important to think about how TCO is bigger than just piece price. Consider everything from freight to disposal, and you start to see the full picture of just how much something is eating into your budget. So, how can you minimize these costs? Look for a strategic partner who can help you find cost-savings opportunities. 1. We can work together to create competitive advantages for you. You’re currently producing 100 units a day. How would you like to bump that up to 110 just by adjusting your cutting tools? Our metalworking team can offer those types of productivity boosts. 2. Let’s develop a common understanding of TCO. You’ve read the term TCO four times now, but unless you’ve thought about it for years, maybe focus on just this thought. TCO includes anything that affects the price you pay. 
3. Now, identify where to reduce TCO.
As the saying goes, knowing is only half the battle. Once you recognize what to target, let’s say decreasing expenses, then we can act on it together by attacking your freight, product consumption, and inventory management. For a partner to truly be strategic, they need to make you more profitable and productive. This is the kind of partnership that you can build and push in the direction that needs the most attention in your organization. And as a supply chain partner, Fastenal is right there with you, every step of the way. In short, if you want to increase revenue and decrease inventory, reach out to us and we can get started. You may also like:
Vertical Divider
|
What makes Fastenal a good strategic partner?
We look at our partnerships as a responsibility to reinvest in your business. Our teams are built around people who will bring ideas and technology into your business to help you grow. Click here to see if we'd be a good fit for you. Like what you're seeing here? Subscribe to the Blue Print for FREE and get the magazine sent right to your address.
|
