What is Different?

How is SETECH different from distributors and other integrated suppliers?

How will your business be different with SETECH as a partner?

To obtain specific information as to how the SETECH difference will mean significant MRO cost savings for your business, simply contact our Sales Department.

How is SETECH different from distributors and other integrated suppliers?

Traditional distributor-based business models focus on profit from product sales and product usage, and hidden margin through rebates - which naturally conflicts with providing objective services and maximum value for the customer. Our program does not originate from a distribution model. Instead, our "pure integrator" model is supplier neutral and has a virtually limitless supplier base. In other words, SETECH is not restricted to a proprietary catalog or franchised product line. We are not looking to push high volumes or apply a mark-up to any of the products or services provided. This means that your organization receives the best value and the best-case part solution available in the market at the time of purchase.

SETECH is particularly adept at the management of the non-catalog blueprint-tooling inventory and OEM commodities, but also has the capability to manage the purchasing of both catalog and non-catalog items. Each category has unique cost savings opportunities and requires different management techniques.

When it comes to purchasing, SETECH doesn't just do it for you - we do it with you. When you entrust your purchasing to us, we start with assessing your current situation and then recommend a path that will result in optimization of your transaction costs, your application costs and your spend. We recognize that most long standing supplier relationships exist for a reason and most of those result in value added services for the plant locations. Our approach is to systematically evaluate those relationships and recommend the best path to take for each site. SETECH personnel can train your staff to manage the purchasing and onsite distribution of MRO inventories in support of your maintenance and production missions.

Additionally, SETECH's superb onsite technical support produces ongoing cost savings derived from process and productivity improvements not offered by traditional integrated suppliers.

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How will your business be different with SETECH as a partner?

The typical "future state" once a company out sources its MRO management to SETECH might include the following "key differentiators":

• Site-Level ISO Procedures: Critical ISO processes are strictly enforced and adhered to in the areas of procurement, inventory, tool crib and storeroom management, and billing.
• Site-level Employees: Certain Site Management, Buyers, Inventory Control Managers, and Accounts Payable employees may work for SETECH, depending on the client situation. Each configuration is customized for the client.
• Sophisticated Technology: Computer systems in the warehouses and cribs will be state-of-the-art applications customized for MRO IMM processes. They include Internet access and interfaces with ERP Systems, EDI, etc.
• Cost Savings: SETECH will examine the entire indirect supply chain from a maintenance and engineering standpoint to discover cost saving opportunities (e.g. process and control revision, reverse engineering/re-engineering OEM parts). Cost savings programs will be implemented and/or refined to address all cost areas of the tool crib and warehouse. These programs are mapped and customized in accordance with existing cost-savings initiatives.
• Build-to-Order/Print (BTO/BTP) Capabilities: Request for Quotes (RFQs) are automated through electronic quoting tools and sent via the Internet with attached digital blueprints.
• Performance Measurement: New performance metrics will be established to monitor key procurement, inventory, tool crib and store room, and billing processes to ensure service level agreements are exceeded.
• Inventory Ownership: Transfer of actual ownership of the complete maintenance, repair and operations support inventory directly to SETECH is optional, but encouraged. Most of our clients have chosen this option and have immediately realized savings in cash flow, budgets, balance sheets and earnings statements. The improved flexibility in the finance and planning areas can be dramatic.
• Leveraged Spend: MRO spend will be aggregated for optimal buying leverage.