Presentation Transcript

1. YOUR TRUSTED PARTNER FOR COST-EFFECTIVE INVENTORY MANAGEMENT SOLUTIONS ON SLOW-MOVING OEM PARTS SINCE 1957
2. WHO IS SRS? YOUR TRUSTED PARTNER FOR SLOW-MOVING OEM PARTS SINCE 1957 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
3. Financial Stability and Audit Partner Key Investors The following appears as a matter of record only $415,000,000 Trivest Fund V, L.P. A partnership formed to invest in founder/family owned businesses Audit Partner
4. OUR LONG-TERM RELATIONSHIPS PARTNERSHIPSWITH INDUSTRY-LEADING OEMS 30+ YEARS 20+ YEARS 10+ YEARS
5. OTHER OEM PARTNERS
6. CUSTOMER BUSINESS DRIVERS SRS is the BEST PRACTICE for SLOW-MOVING PARTS MANAGEMENT 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
7. OUR BUSINESS MODEL MAXIMIZING OUR PARTNERSHIP BY TAKING RESPONSIBILITY FOR YOUR SLOW-MOVING INVENTORY IDENTIFY RECEIVE AUDIT STORE FULFILL
8. OUR BUSINESS MODEL IDENTIFY: Each quarter our OEM partner identifies its slow-moving, excess or obsolete parts to sell to SRS for the approximate scrap value, instead of scrapping. OEM criteria are parts with no sales activity in the last 12-18 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 all parts until OEM’s customer demand requires the OEM to repurchase the part for 50% of their last sale priceor until the part is scrapped. FULFILL: OEM is able to acquire parts from SRS with no minimum purchase and can even order through a web-based parts portal with confidential access.
9. OUR FULFILLMENT PROCESS WE PROMISE TO OPTIMIZE CUSTOMER SATISFACTION TRACK PICK INSPECT PACK SHIP
10. OUR FULFILLMENT PROCESS WE PROMISE TO EXCEED YOUR EXPECTATIONS TRACK: OEM tracks inventory using its part # via proprietary web parts portal and can receive weekly or monthly inventory reports. PICK: SRS expert parts pickers accurately locate and pick the best quality part from one of our 8 warehouses. INSPECT: SRS details and can even clean or paint the part if required using multiple methods including a gentle baking soda blaster. PACK: SRS packages all parts in environmentally-friendly packaging 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.
11. OUR VALUE PROPOSITION PROVIDING YOU A COST-EFFECTIVE AND SEAMLESS SUPPLY CHAIN OEM CUSTOMER BENEFITS Access to new, authorized OEM quality parts for essential equipment Single source OEM parts provider 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
12. OUR FINANCIAL VALUE PROPOSITION For EVERY $1,000,000 of INVENTORY, the OEM is SAVING $969,491 over 10 YEARS OEM’s ASSUMPTIONS WHEN PARTNERING WITH SRS: Inventory Cost = $1,000,000 Inventory Value = $2,000,000 Carrying Cost = 20% 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) = 150,000 Scrap Value per LB = $.10
13. OUR FINANCIAL VALUE PROPOSITION OEM CARRYING COSTS FOR OSMI = 20% OEM SAVINGS PARTNERING WITH SRS = $969,491
14. ACCOUNTINGCONSIDERATIONS* 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. * 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.
15. The Knowledgeable Parts Experts YOU CAN TRUST with YOUR SLOW-MOVING PARTS S.R. SALES N31 W22300 Green Rd. | Waukesha, WI 53186 PHONE: 262-522-6644 | FAX: 262-522-7077 E-MAIL:SALES@SRSALES.COM JOHN STEINDORF, CEO CELL: 414-588-8031 E-MAIL: JOHN.STEINDORF@SRSALES.COM WEBSITE: SLOWMOVINGPARTSSOLUTIONS.COM