80 / 20 Strategy
EFC’s 80 / 20 Strategy – How It Benefits our Partners / Suppliers
EFC partners with industry-leading ENGINEERED fastener manufacturer suppliers to build mutually beneficial businesses that truly complement and support one another.
This is achieved through the implementation of customized “Master Distributor” 80/20 programs with key partner suppliers, thereby providing a Supplier Value Proposition (SVP).
The many benefits to our suppliers included in our SUPPLIER VALUE PROPOSITION are:
- STREAMLINED OPERATIONS
- ACCELERATED GROWTH & INCREASED PROFITABILITY – Enables the supplier to focus on the 20% of their business yielding 80% of their profits, resulting in accelerated growth & increased profitability
- INVENTORY & SCHEDULING EFFICIENCIES – Transfer of carrying costs (inventory) & better visibility to production scheduling
- REDUCED NUMBER OF TRANSACTIONS – Significantly less transactions to process (fewer purchase orders, shipments, invoices, notifications, inquiries and quotes)
- REDUCED CREDIT RISK – Fewer invoices to collect; and receive on-time payments from a financially sound company
- JOINT SALES STRATEGIES – Joint initiatives on taking new innovative products to market; new business development
- GREATER MARKET COVERAGE – EFC becomes extension of their sales force with connections to new & existing customers, territories & markets
- CREATE NEW INCREMENTAL GROWTH – Through generating new business opportunities for their products in new applications at new customers
- IMPROVED SERVICE – Improves the service levels, coverage & responsiveness to the customers
- ELIMINATE IMPORT/EXPORT and INTERCOMPANY – Utilize EFC’s global locations as a preferred channel
- ENABLES FOCUS ON THEIR BUSINESS – Enables investment (time, money, resources) to be allocated towards core business & strategic areas of growth