Napa Auto Parts 2007 Annual Report Download - page 14

electrical/electronics product group
EIS฀is฀one฀of฀North฀America’s฀leading฀distribu-
tors฀of฀process฀materials,฀production฀supplies,฀
industrial฀MRO฀and฀value฀added฀fabricated฀parts.฀฀
Primary฀markets฀for฀EIS฀are฀the฀electrical฀OEM,฀
apparatus฀repair฀and฀assembly฀markets.
2007 Highlights
7%฀increase฀in฀revenues฀฀฀฀New฀products฀and฀markets฀฀฀฀geographic฀expansion฀฀฀฀operational฀excellence฀฀฀฀฀฀฀
technical฀and฀service฀solutions฀฀฀฀proprietary฀inventory฀management฀systems฀฀฀฀key฀account฀and฀supplier฀development฀
12
electrical/electronics group net sales
in million of dollars
EIS provides our many valued suppliers with an attractive distribution
channel via a network of 31 stocking locations in the U.S., Puerto Rico,
Dominican Republic, Mexico and Canada. Additionally, EIS operates three
plants strategically located in North America that provide value added
fabricated material to our customers. Combined, these locations offer our
customers access to complete inventories, capable people and a comprehen-
sive range of innovative logistics services.
2007฀Performance
Total revenues increased by 7% in 2007 and this follows a 20% growth in
revenues in 2006. e sales progress at EIS reflects favorable market condi-
tions, as evident through continued manufacturing expansion in the U.S.
In addition, our ongoing commitment to key sales initiatives, cost manage-
ment and operational process improvement helped drive our improved
operating performance in 2007.
Our focus on new products and markets, geographic expansion, operational
excellence and strategic customer and supplier relationships serve as key
growth initiatives at EIS. ese initiatives have strengthened our position
as the preferred source for materials, supplies, parts and systems at electrical
and assembly manufacturers throughout North America.
New฀Products฀and฀Markets
We continue to add new product lines such as an expanded offering of
motors and motor parts for the apparatus repair industry and other niche
markets. EIS has also improved our MRO supplies and lead wire offering.
Furthermore, we continue to explore adjacent markets, such as wire and
cable, which offer large opportunities for future growth.
In addition, we remain focused on core and value added fabrication
opportunities in traditional electrical markets as well as new and adjacent
markets, including medical device, automotive and energy.
Geographic฀Expansion
Another source of growth for EIS has been geographic expansion beyond
the U.S. We continue to improve our North American distribution foot-
print and expect the evolving electrical and assembly markets in Canada,
Mexico and the Caribbean to grow faster than the overall industry. We
have plans for additional business expansion in each of these areas.
Operational฀Excellence
EIS has employed Operational Excellence, a continuous improvement
program, to address and solve business operational issues. is disciplined
approach to process improvement has resulted in increasingly efficient op-
erations and contributed to our improved operating performance in 2007.
We see further opportunities for improvement in 2008.
Customer฀and฀Supplier฀Relationships
Initiatives to align EIS with strong customer and supplier relationships
further enhance our long-term growth strategy. rough closer supplier
relationships and continued focus on our top customers, we aim to differ-
entiate EIS through product, technical and service solutions that meet our
customers’ unique requirements. Our standards for high performance make
us the preferred source in the marketplace and position EIS for continued
growth.
2008฀Outlook
Our strategic initiatives, coupled with stable market conditions, provide
EIS with additional opportunities to grow revenues in 2008 and beyond.
We will support this sales growth with a continued focus on cost man-
agement and high performance operational processes to insure ongoing
improvement in our earnings results.
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