Maximize Integrated Supply ROI
|Creating Profitable Contracts to Reduce Your Risk
As part of our turnkey integrated supply solution, we’ll help you structure a contract that is both profitable for you and appealing to your client. From lease options and clauses to value-added services, we will show you how to reduce your risk and generate more profit from your next integrated supply opportunity. Contract Example:
When structuring your contract with the customer, you will state that:
a) the customer must purchase all equipment if the contract is terminated early or
b) the supplier has the option to keep the equipment and move the equipment to a new location.
(Example: monthly sales of $50K x 2% = $1,000 lease payment. If sales equate to $25K x 2% = $500, then the difference of $500 would be invoiced to customer.)
The CompuCRIB Formula Eliminates Risk and Increases Profit
After 30 years in the industrial supply industry, we know what it takes to turn a profit. It’s simply, really. Just dedicate 2% of your gross annual sales to the cost of equipment and software. Here’s how it breaks down:
Example #1: A four-year contract on a $500K annual account will provide ROI on a small CompuCRIB model.
$500K x 4 = $2MM
$2MM x 2% = $40K
$40K = Cost of small CompuCRIB model
Example #2: A four-year contract on a $1MM annual account will provide ROI on a large CompuCRIB model.
$1MM x 4 = $4MM
$4MM x 2% = $80K
$80K = Cost of large CompuCRIB model
The best part of this formula is that, at the end of the four-year contract, you will own the CompuCRIB solution!
Less Staffing Reduces Overhead
Integrated suppliers that use CompuCRIB report the reduction of at least one full-time person per crib location when compared to traditional MRO supply crib management. Each person eliminated in the management of an integrated supply crib represents approximately $40K a year in cost savings. By reducing your staff by just one person, you will pay for a large CompuCRIB system in less than two years!