Graybar Success with GAINS
Electrical Distribution Optimization: Graybar Experiences the Power of GAINS in Their Supply Chain
34% reduction in purchase order receiving activity
8% reduction in transfer orders
13.5% increase in annual sales
Headquartered in St. Louis, MO, Graybar is a Fortune 500 company that specializes in supply chain management services and electrical distribution. The company is a leading North American distributor of high quality components, equipment, and materials.
Graybar was using a planning optimizer through their ERP system, when it was announced that the application was nearing end-of-life. The Graybar team knew they had to find a new option as soon as possible. The team looked into four supply chain planning and optimization solutions, including GAINSystems. Mike Polansky, Director of Planning and Procurement at Graybar, said that the most important feature he was looking for was a tool that could be put into the hands of the inventory planners.
- Improve inventory availability and customer service levels to increase service-driven sales and eliminate expediting activity
- Increase inventory turns and minimize inventory-related constraints
- Reduce receiving activity of purchase and transfer orders
- Improve planning efficiency and effectiveness through more robust processes
- Seamlessly integrate planning process improvements with the SAP foundation and eliminate off-line processes
At the beginning of the GAINS project, Graybar had a Material Availability of 89%. By the end of Year 1, Material Availability was 93%, which helped to keep service levels high, leading to increased sales.
During the software evaluation process, GAINSystems suggested an IIPSE (Inventory, Investment, Profit, and Service Evaluation) project. The IIPSE is a comprehensive study that uses GAINS technology to simulate, using a complete download of live data, how the GAINS Method will dynamically deliver operational improvements and financial benefits. The project estimated $14M in annual inventory reductions, $1.7M in annual receiving activity reductions, and $2.7M in annual expediting activity reductions.
The actual results that Graybar experienced were even better than the IIPSE project showed. In fact, the GAINS project was recognized as one of the most successful and beneficial the Graybar Finance Team has seen at the company.