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Case Study: Material Storage Lowers Project Costs

2/18/20  |  Rexel

Challenge:  Reducing Costs

Our customer, Schuler-Haas Electric Corp., won a large local school project and needed storage space before the project start date. This would alleviate impending tariff increases on the purchase of $250K of lighting. They did not have site access available for material storage or enough space at their local shop.

Action: Introducing Material Storage Solutions

We recognized the challenge faced by the customer and proposed a solution that would provide storage for the lighting order in our new Binghamton branch. This solution allowed Schuler-Haas Electric Corp. to order the material before the tariff-related pricing increases took effect. The agreement to provide storage included material receipt, visual inspection, order verification, short-term storage, and coordination with the customer for material pickup or delivery, as needed.

Result: Significant Savings

Our ability to provide environmentally controlled material storage for the lighting material before the project start date allowed Schuler-Haas Electric Corp. to eliminate the additional tariff costs, which would have raised material costs by 10%. By ordering the material early, our efforts helped Schuler-Haas Electric Corp. save $28,000 in additional material costs due to the impending tariffs.

Our inside sales and warehouse staff were instrumental in providing material handling, receipt inspection, and verification of a total of 26 total shipments of material received for the project. An added benefit was the identification of visible damage to lighting fixtures at the time of receipt and the opportunity to contact the manufacturers to provide replacement fixtures before Schuler-Haas Electric Corp. receiving them onsite. The ability to provide receipt-inspection saved an estimated 19.5 hours of field personnel labor for our customer.

Schuler-Haas Electric Corp. was also able to reduce the number of onsite Conex storage units by approximately five units for three months with our material storage solutions. With the average three-month cost for rental, delivery, and pickup per Conex being $900, a total of $4,500 was saved in onsite storage for the project.

Impact: Lower Project Costs

The ability to offer customers storage options provides a valuable service to customers. Customers benefit from cost savings for onsite storage solutions and labor savings for material handling and receiving, as well as receipt inspection. Providing a secure storage environment helps us leverage our existing staff and facilities to offer our customers net cost savings for their material storage.

We Can Help You Store and Save

Are you looking for ways to lower your construction project costs? Let us help you find solutions to streamline processes and save money. To learn more about material storage, download our brochure or contact one of our specialists today!