Napa Auto Parts 2002 Annual Report Download - page 16

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Customer Service
EIS provides service to its customers from locations in
31 cities in the United States, as well as Monterrey and
Guadalajara to service the Mexican markets. Our distribution
and fabricating facilities and personnel are strategically
located to insure that customers receive the technical
assistance and support they need to improve their
manufacturing processes and the “Just in Time” delivery
they require.
EIS continues to expand implementation of its Advanced
Inventory Management Systems (AIMS), an automated system
using bar code scanners to transmit data electronically from
a customer’s facility to our core business computer system, SAP.
AIMS allows EIS to cost effectively maintain and manage EIS
inventories which are located in the customer’s manufacturing
facility. With the AIMS system, customers have materials
available at the point of use utilizing automatic replenishment,
thus, lowering the customer’s procurement costs.
EIS is “The One Source” supplier for the electrical and electronic manufacturing and repair markets throughout the United
States and Mexico. With headquarters in Atlanta, Georgia, EIS provides world-class materials from manufacturers with
superior products and services to the Electrical OEM, Electrical Repair, Electronic Assembly, and Printed Circuit Board
markets. EIS distributes a variety of products such as pressure sensitive tapes, magnet wire, motors and bearings, solder
and chemicals, hand tools, and copper clad laminate.
2002 was a difficult year in the end markets served by EIS. In our Electrical markets, the continuing decrease in demand
for capital goods by U.S. manufacturers, which began in early 2001, has caused that market segment to continue
to decline, but at a slower rate. The technology industry, especially the telecom segment, has been particularly
hard hit by the bursting of the technology bubble. The effect of the recession and the resulting financial stress on
technology companies has caused our Electronic customer base to dramatically contract their manufacturing activities;
and therefore, limit our sales opportunities in that market segment.
One of the biggest challenges EIS faced in 2002 was to adjust the size of its operations to compensate for the sales
decline resulting from the current tough economic climate. EIS has significantly lowered operating expenses by streamlining
work processes, reducing staff, combining and subleasing excess space in facilities, and other cost saving initiatives.
In addition to cost reductions, EIS was focused on reducing the working capital committed to operations and has
significantly improved asset management, primarily accounts receivable and inventory.
ELECTRICAL/
ELECTRONIC
MATERIALS GROUP