Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 101

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1
Chunk 101
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($ in millions)202420232022Sales$256 $260 $240 Operating Income$22 $22 $20 % Margin8.5 %8.3 %8.1 %EBITDA$22 $22 $20 % Margin8.6 %8.5 %8.3 %SCS Employees397 419 409 

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The SCS segment enters into long-term contracts with its customers that can be canceled on little or no notice under certain circumstances. The SCS segment provides fully outsourced MRO solutions for sourcing MRO products including, but not limited to, the following: inventory optimization and management; store-room management; transaction consolidation and control; vendor oversight and procurement cost optimization; productivity improvement services; and customized reporting. Our mission is to help our customers become more competitive by reducing their indirect material costs and order cycle time by increasing productivity and by creating enterprise-wide inventory and procurement visibility and control.

The Company has developed assessment tools and master plan templates aimed at taking cost out of supply chain processes, streamlining operations and boosting productivity. This multi-faceted approach allows us to manage the entire MRO products channel for maximum efficiency and optimal control, which ultimately provides our customers with a low-cost solution.

The Company takes a consultative approach to determine the strengths and opportunities for improvement within a customer’s MRO products supply chain. This assessment determines if and how we can best streamline operations, drive value within the procurement process, and increase control in storeroom management.

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Decades of supply chain inventory management experience and comprehensive research, as well as a thorough understanding of our customers’ businesses and industries have allowed us to design standardized programs that are flexible enough to be fully adaptable to address our customers’ unique MRO products supply chain challenges. These standardized programs include:

•SmartAgreement, a planned, pro-active MRO products procurement solution leveraging DXP’s local Service Centers.

•SmartBuy, DXP’s on-site or centralized MRO procurement solution.

•SmartSourceSM, DXP’s on-site procurement and storeroom management by DXP personnel.

•SmartStore, DXP’s customized e-Catalog solution.

•SmartVend, DXP’s industrial dispensing solution, which allows for inventory-level optimization, user accountability and item usage reduction by an initial 20-40%.

•SmartServ, DXP’s integrated service pump solution. It provides a more efficient way to manage the entire life cycle of pumping