Accu-Tec is an 18-year-old Louisville-based company that provides contract packaging, distribution, and warehousing for media software and consumer goods. Accu-Tec has been a customer of Shippers Supply Company for eight years. The company was Shippers first partner in the ESP program, beginning 18 months ago.
ESP has helped Accu-Tec increase the cash on its books by $142,000 and increase its profit related to packaging by 32% through a reduction in cost for packaging and carrying inventory, reduced production downtime, increased sales, and time savings related to the purchase of packaging supplies.
Here's what Accu-Tec says about its experience with ESP and Shippers Supply Company:
Improves Cash Flow
… it's really improved our cash/flow situation because … I'm not buying inventory and having it sit out on the floor, and waiting until we use it. I'm buying the inventory as I use it. That's a big plus for us.
Tina Redmon/Controller
Adjusts to Customer Production Needs
If your production varies a lot, and you have peaks and valleys, you don't have to make five separate phone calls to make sure your product is going to be there to cover that promotion. You just have Shipper's Supply that will take care of all that,
Gary Klass/ Purchasing Manager
No Worry
We don't have to worry about running out of materials and shorting the customer and losing sales.... You know, we don't have to be out there to take counts, know when we are going to run out of inventory. They are always keeping us supplied, so we don't have to worry about stock-outs.
Tina Redmon/Controller
…when you are buying it all yourself, you could be dealing with ten different vendors and you could run out of something, or come close to it because of a peak in production, and yes, you could run out, easy. It used to catch us off guard a couple of times when they would, I'd have to make a phone call, and sometimes it takes a couple of weeks to get things. But with Shipper's, if that were to happen, they're maintaining that backup supply, they've eliminated the lead time. I can call them and they've got it, in their warehouse…
Gary Klass/ Purchasing Manager
Frees up Time and Space
…we also benefit because Gary, who works with me, he does our purchasing, so, he's not spending all his time, monitoring inventory levels, creating purchase orders, going to a number of different suppliers to purchase the various goods that we now get from one supplier, and he's not having to follow-up and make sure the order goes through, check on the order status, when is it going to be here? etc. So that frees up his time to do other things for me as well.
Tina Redmon/Controller
Well, Shipper's tries to keep your inventory at a minimal level, because it helps them and it helps you. It eliminates your space problem and it also helps their space problem, because they don't have to warehouse as many and bring it in also.
Gary Klass/ Purchasing Manager
Able to Focus on What's Important
I mean I don't know anybody today where cash/flow is not critical. One of the reasons companies, not just like Shipper's, but like us exist is because companies today are busy figuring out what there core competency is. I don't care if you take the biggest corporation in the world, at some level you have limited resources. Limited capital, limited people, okay, limited space. If you can find ways to make better use of those things doing your core competency, then you are going to be able to do more. Okay, well we are able to take our capital and do other things with it because of the turns we are able to get by using the ESP program.
Barry Epstein/VP, Business Development
It Works
I mean we haven't had any problems, we haven't had any mis-shipments, or we haven't had any lines shut down. So what we've done so far with it has been great.
Roy Kraemer/Facility Manager
A Partnership
The biggest thing about my relationship with Beth [our Shippers Account Manager] is Beth thinks like I do. She is always looking for the new, the different, and the creative and to do it cost effectively. We have worked many times on new equipment, new products. When projects come up for us, there's a real value there, in having someone you can count on…
Barry Epstein/VP, Business Development
…recently we were contacted by someone that wants to package these hurricane clips in a plastic container of some sort, and wants us to do that job for them. All I have to do is pick up the phone and call John Allen [Shippers ESP Coordinator] or send him an e-mail even, and say this is what we have, this is what the customer wants, if you don't have this supplier, can you then try to find one for us? And he proceeds to do that for us....
And I think they've learned with us, having a variety of items that we have and a variety of production schedules that we have, our ups and downs at times, they've adapted and been learning right along with us. I recommend them wholeheartedly.
Gary Klass/ Purchasing Manager
It's not a vendor relationship, it's really a partnership. It's a business partnership. We really, that's what we try to provide to our customers, and that's what we look for in a supplier, is not a vendor, but a partnership. They have a vested interest in the business we do because we get those supplies from them and they understand that, and that's how they approach it.
Barry Epstein/VP, Business Development
