The TCO Tracking Tool or T3, a new tool developed by Rexel to monitor Savings for Key Account customers and thereby allow them to reduce their costs
Saving money across the supply chain is a requirement that is increasingly being voiced by our Key Account customers.
This TCO (Total Cost of Ownership) approach entails not only reducing product cost but also optimizing many other costs, such as storage (capital costs, handling, etc.), ordering and invoicing, installation, etc., which together more than double the initial cost.
In 2014, using a particularly effective solution created in the USA by its subsidiary Gexpro, Rexel redesigned, simplified and adapted this tool for implementation in every country in which the company operates.
A tailor-made system that will identify and quantify all the savings brought to our clients
The T3 meets the specific needs of customers and sales representatives of local banners. It provides a detailed explanation of best practices for lowering TCO and highlights the most commonly used. It allows Rexel employees to submit detailed cost savings with only a few clicks of the mouse and allows customers to validate these cost savings, which can then be implemented and reported.
Examples of cost savings proposed include:
· Stock reduction: when Rexel guarantees next-day delivery, many items no longer need to be stored by the customer, thus saving on capital and temporary storage costs,
· EDI solutions (Electronic Data Interchange) to ensure close communication between our ERP systems: this reduces manual data input and resource costs associated as well as human error which can be costly,
· Electronic Catalogue solutions, Punch-Out, Energy Efficiency and product substitution are other areas of savings
All the above initiatives can bring substantial savings, this can be a game changer for our clients.
A solution implemented on a global scale
In addition to the USA, the T3 tool was implemented in 8 European countries in 2014. In late 2014, it will be implemented in Canada and South East Asian Countries.
The TCO Tracking Tool has been especially well received by Rexel’s customers (more than 200 already logged in) and sales teams. Available online, user-friendly and configurable, the T3 is already a true commercial success. Ultimately it should emphasize several million Euros of savings for customers and constitute a true competitive advantage for Rexel.
