Napa Auto Parts 2004 Annual Report Download - page 14

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EIS supplies a full range of critical products to three primary market segments
in North America – the electrical original equipment manufacturer, the electronic
assembler, and the motor apparatus repair industry. Our products range from
insulating and conductive materials to assembly tools, test equipment, safety
and shop supplies, industrial products and customized parts.
EIS provides cost effective distribution services
through a network of 34 stocking locations
in the U.S. and Mexico. Each location is a full
service branch with sales personnel, com-
plete inventories and a comprehensive range
of innovative logistics services to streamline
the procurement process.
During 2004, EIS continued its focus
on revenue growth and for the year the
Company had a 13% increase in sales.
Additional focus on enhancing sales margins,
controlling costs and increasing inventory
turns resulted in a significant improvement
in earnings contribution. The performance
of EIS in 2004, while assisted by a stronger
industrial economy in North America, is
encouraging for us.
Growth Initiatives
We have succeeded in building market share
through a number of initiatives designed to
offer solutions to our customer’s unique re-
quirements. In 2004, we continued to expand
our advanced inventory management solu-
tions (AIMS) offering to our customer base.
Through a variety of hardware and software
tools, the AIMS offering allows a customer to
reduce overall inventory management costs
and gives the customer added incentive to
increase their purchases in the system.
At EIS, we promote the idea of being the
“one source” to our customers. Over the last
five years, we have added new product lines
such as motors for the apparatus repair
industry and MRO supplies for all of our
customers. We have recently been selected,
as one of two distributors nationally, to
represent new thermal management products
and we have upgraded and expanded our
offering of silicones and greases. These new
products and innovative services broaden and
enhance our offering and favorably position
EIS as a valued supplier to our customers.
Another source of growth for us has been
to expand our offering beyond the U.S. We
continue to focus on improving our distribu-
tion “footprint” throughout North America.
In addition, our initiatives to expand and
grow our fabrication solutions for both our
traditional and new markets have been
extremely encouraging. Finally, the support
of our employees and their daily dedication
to creating customer satisfaction is another
reason that our customers continue to select
EIS as their “one source” for process material,
production and MRO supplies.
Looking Ahead
EIS will continue to focus on initiatives to
grow revenues and improve cost efficiencies.
We believe that our business strategies
will help us grow our business in 2005
and beyond.
OUR VALUE-ADDED FABRICATION SOLUTIONS
AND CUSTOM-ENGINEERED PRODUCTS
POSITION EIS AS A SINGLE SOURCE SUPPLIER
TO CUSTOMERS.