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YOUR TRUSTED PARTNER FOR COST-EFFECTIVE
INVENTORY MANAGEMENT SOLUTIONS ON
SLOW-MOVING OEM PARTS SINCE 1957
WHO IS SRS?
! For 5 decades, the leader in partnering with OEMs, Dealers and Distributors
! Confidential and accurate inventory parts management with inventory reports and monitored access
! Proprietary inventory system with over 40 million OEM parts in stock in 8 warehouses
! Searchable parts portal with EDI compatibility and web ordering
! Partnerships with over 100 market-leading OEMs ranging from heavy-duty to light industrial manufacturers
A COST-EFFECTIVE AND SEAMLESS SOLUTION for YOUR slow moving inventory
OWNERSHIP AND AUDIT PARTNER FINANCIAL STABILITY AND QUALITY INITIATIVES
Key Investors
Audit Partner
$415,000,000 The following appears as a matter of record only
A partnership formed to invest in founder/family owned businesses
Trivest Fund IV, L.P.
OUR LONG-TERM RELATIONSHIPS PARTNERSHIPS WITH INDUSTRY-LEADING OEMS
30+ YEARS
20+ YEARS
10+ YEARS
OTHER OEM PARTNERS
CUSTOMER BUSINESS DRIVERS
• bottom line profits
• parts availability
• customer loyalty
• product lifecycle
• customer retention
• internal resources
• inventory carrying costs
• storage footprint
• unprofitable inventory
• customer fulfillment
• inventory turn times
• audit cycle counts
SRS is the BEST PRACTICE for SLOW-MOVING PARTS MANAGEMENT
OUR BUSINESS MODEL
IDENTIFY
RECEIVE
AUDIT
STORE
FULFILL
MAXIMIZING OUR PARTNERSHIP BY TAKING RESPONSIBILITY FOR YOUR SLOW-MOVING INVENTORY
OUR BUSINESS MODEL
IDENTIFY: Every quarter, OEMs identify their slow-moving, excess and obsolete parts to sell to SRS for the approximate scrap value, instead of scrapping. OEMs select parts with no sales activity in the last 12-18 months and go out of stock. OEMs can also consign parts to SRS that have had sales in the past 18 months.
RECEIVE: SRS purchases or consigns this slow moving inventory consisting of service and production parts and finished goods that are then shipped to SRS.
AUDIT: SRS audits, sorts, and enters the OEM part #, quantity, description, last sale date and last sale price into its custom warehouse management system. STORE: SRS stores its parts in one of its facilities until the OEM’s demand requires the part to be re-purchased.
FULFILL: OEM is able to acquire parts from SRS with no minimum purchase amount and can even order through a confidential web-based parts portal and have shipments made directly to the OEM’s customer.
OUR FULFILLMENT PROCESS
TRACK
PICK
INSPECT
PACK
SHIP
WE PROMISE TO OPTIMIZE CUSTOMER SATISFACTION
OUR FULFILLMENT PROCESS
TRACK: OEM has the option to track the SRS inventory using its original part number via a proprietary web parts portal or they can receive inventory reports.
PICK: SRS expert parts pickers accurately locate and pick the best quality part from one of our 8 warehouses. If there is a problem, the OEM is notified.
INSPECT: SRS details and can even clean or paint the part if required using multiple methods including a gentle baking soda blaster which will not jeopardize the integrity or quality of the part.
PACK: SRS packages all parts using shredded cardboard, an environmentally-friendly material, and becomes a seamless part of the OEM supply chain.
SHIP: Next day air orders are shipped out the same day 98+% of the time to the OEM or directly to the OEM’s customer with satisfaction guaranteed.
WE PROMISE TO EXCEED YOUR EXPECTATIONS
OUR VALUE PROPOSITION WE ELIMINATE A TRADE OFF BETWEEN CAPITAL EFFICIENCY AND CUSTOMER SERVICE
! Streamline your efficiency and inventory levels without risking future parts availability.
! Shorten customer lead times and reduce the need for re-manufacturing.
! Parts experts inspect, clean and even paint parts so that customer expectations are exceeded.
! Enhance your brand loyalty by extending product support for genuine OEM parts.
! Retain control of your secondary parts market without the associated high costs of holding slow moving inventory.
! Improve your bottom line and inventory turns while taking an inventory tax write-off and reducing cycle counts.
OEM CUSTOMER BENEFITS ! Access to new, authorized OEM quality
parts for essential equipment
! Shorten lead times for critical parts ! Convenient same-day shipping service
with no minimum orders
! Eliminate need for unreliable and unauthorized or refurbished parts
! Increase satisfaction and brand loyalty
! Lengthen product lifecycles
OEM BENEFITS ! Receive immediate tax benefit and
improve balance sheet
! Free up valuable warehouse space
! Maintain reliable parts supply for customers and dealers/distributors
! Increase inventory turns and eliminate expensive carrying costs
! Focus on core competencies
! Earn income on subsequent sales
OUR VALUE PROPOSITION PROVIDING YOU A COST-EFFECTIVE AND SEAMLESS SUPPLY CHAIN
OUR FINANCIAL VALUE PROPOSITION
• Inventory Cost = $1,000,000
• Inventory Value = $2,000,000
• Carrying Cost = 15%
• Tax Rate = 40.0%
• Cost of Financing (Discount Factor) = 5.0%
• Parts Margin = 50%
• % of Sale Price for Repurchases = 50%
• % Expected to be Repurchased = 30%
• Inventory Weight (LBs) = 100,000
• Scrap Value per LB = $.10
For EVERY $1,000,000 of INVENTORY, OEM SAVINGS total $769,188 over 10 YEARS OEM ASSUMPTIONS WHEN PARTNERING WITH SRS:
SRS SAVINGS to OEM at 15% ANNUAL CARRYING COST over a 10 year period
OUR FINANCIAL VALUE PROPOSITION
ACCOUNTING CONSIDERATIONS*
* Inventory purchased from the OEM becomes the property of S.R. Sales and can be sold, scrapped, or altered at the discretion of SRS and for the sole benefit of SRS. Consult with your accounting and legal departments and other qualified authorities for a detailed analysis of appropriate IRS regulations and court decisions.
The IRS will allow a deduction upon the sale of inventory as long as there are no limits on resale. The IRS will allow a deduction upon the sale of inventory as long as the company does not retain possession. The IRS will disallow a deduction upon the sale of inventory if the company requires payment when that inventory is sold to another party.
SRS does not limit the resale of the inventory and maintains control at all time. SRS will pay the shipping expenses and obtains clean title to the inventory once the shipment arrives. SRS does not pay any commissions or offer any other incentives directly tied to the sale of any of its inventory.
S.R. SALES N31 W22300 Green Rd. | Waukesha, WI 53186 PHONE: 262-522-6644 | FAX: 262-522-7077 E-MAIL: [email protected]
JOHN STEINDORF, CEO CELL: 414-588-8031 E-MAIL: [email protected] WEBSITE: SLOWMOVINGPARTSSOLUTIONS.COM
The Knowledgeable Parts Experts YOU CAN TRUST with YOUR SLOW-MOVING PARTS