MRO “vendor consolidation” is an increasingly popular strategy to leverage buying power and reduce administrative overhead expense. The problem with using one company to consolidate all of your MRO purchases is that you’re lumping all maintenance related items into the same category. The question you must ask before doing this is; are all maintenance related activities the same? If you answered yes, then you’re probably using your plumbers, electricians, carpenters, HVAC techs and pipe fitters interchangeably. You’re not? Of course you’re not because their responsibilities require different skills, tools, materials and expertise. Most company’s use many types of MRO parts and supplies including filters made by various manufacturers and purchased from a variety of vendors. While there are many vendor consolidation services that would have you believe that they can supply all of these items, common sense tells you that they can’t possess the experience and knowledge in all of the disciplines to add value to the supplier / customer relationship. EXFil brings over one hundred years of employee filter industry experience to the table. We’re experts in filtration. No, we can’t and won’t supply your nuts, bolts, light bulbs, belts, janitorial supplies, pipe fittings, etc. because we’re not experts in those categories. But if you’re looking for the absolute best filter supplier read on because we believe that EXFil Filter Management is a cost effective solution to both your filtration requirements and your cost reduction goals.
Filters typically provide the last line of defense in protecting people, equipment and processes. The cost of the filter is generally miniscule relative to what it’s protecting. Filters need to be evaluated in terms of the importance of their function and not necessarily in terms of their first cost. The true value of filtration is often the potential cost of the result of the filter failing to do the job. Additionally, the first cost of the filter can be as little as 10% of the total cost of filtration. The total cost of filtration also involves the “Life Cycle Cost” of the filter installation. So when you evaluate a filter management program you need a company that considers all of the above rather than just the price of the filter.
Very few companies have the experience and resulting knowledge to be a cost-effective single-source supplier for all types of filtration. Reducing the purchase price of the filters you buy is easy, almost anyone can do it but it isn’t necessarily the best strategy. Reducing the “Life Cycle Cost” of filtration should be your and your filter supplier’s primary goal. Achieving that goal maximizes your company’s profitability by considering all of the cost associated with filtration. EXFil’s prices are always competitive but more importantly our “Life-Cycle Cost” approach to filter selection assures our clients that their cost of filtration will support their overall cost reduction efforts.
Following are some of the primary considerations that effect
the “cost of filtration”:
There is no “one size fits all” approach when considering the above items. One or two items may be very important to a customer while others may not be important all. For example, a filter that can only be serviced during annual shutdowns must guarantee a 12-month service life. First cost is secondary to service life in that situation. Or, when filters that must be disposed of in a certain way (incineration, compacted, hazardous waste landfill, etc.) are required the materials of construction may be the determining factor. EXFil’s approach is to consult with the customer to establish a ranking of importance and select the correct filters accordingly. Our experience has shown that the cheapest filter is rarely the best filter and that the money saved by professional filtration management is many times more than can be saved merely by reducing your vendor base and first cost alone.
“Single Source” is a concept that is being touted as a cure-all for MRO supply. Companies of all sizes and types are marketing themselves as single source suppliers. Most companies understand single source as nothing more than the sale of all types of MRO supplies including filters. Volume buying of MRO supplies doesn’t assure the customer that they will achieve economies of scale in each or any category. An MRO consolidator may achieve volume buying in some categories but they will most likely deal with many suppliers just as their customer did. In fact in many cases they will merely purchase from the end user’s existing suppliers, apply a mark-up and pass the higher price on. What you “save” is the expertise that single category distributors bring to the table.
EXFil’s version of “single source” involves representing the very best manufacturers of all types. EXFil is not a manufacturer we’re a distributor. In addition to EXFil’s many years of experience we also tap the collective knowledge of the largest pool of filter expertise in the industry, our manufacturers. One question that we often hear is; “why would I buy from a distributor when I can buy direct from a manufacturer? Can’t we get better prices if we buy direct?” Our answer is; perhaps, but EXFil buys millions of dollars worth of filters every year. We stock nearly one million dollars of inventory in our local warehouses and we serve thousands of customers. EXFil’s volume buying creates value through economies of scale, reduced administrative cost and enhanced buying power for all of our customers.
EXFil Filter Management is the management of our customer’s filtration requirements based on the customer priorities. EXFil Filter Management is much more than just selling our customers filters for their various applications. EXFil and the customer work in consort to select and manage the use of the products that will provide the lowest “Life Cycle Cost” while maximizing filtration quality and minimizing the risk of failure.
EXFil Filter Management is the tool that collectively allows all of our customers to save money and enjoy the security that comes from dealing with knowledgeable professionals rather than a person that merely answers a toll free number and asks you for a part number. ome of the services that you can select from EXFil Filter Management:
There are many areas of filtration that fall outside of the expertise and capabilities of most companies. Our manufacturers support EXFil and in turn our customers in all areas of filtration. The most common areas of filtration are listed below. You may not require our expertise in every area but it’s comforting to know that the knowledge and experience is available to you.
Through our in-house and strategic partner capabilities EXFil offers professional, engineering and consulting services. Our goal is to become our customer’s partner in establishing, addressing and achieving goals related to their filter requirements. Some of the services we can provide and / or coordinate are:
A consultation with one of our experts will get us on the road to answering that question. Our experience has shown that we can produce savings of 10%, 20%, 30% and even as much as 50% of the cost of filtration for our clients. Let’s get together to see if EXFil can help you achieve your cost reduction goals.