Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 11

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 11
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 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. Table of Contents 10

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 systems and rotating equipment. The Company's SmartSolutions programs listed above help customers to cut product costs, improve supply chain efficiencies and obtain expert technical support. The Company represents manufacturers of up to 90% of all the maintenance, repair and operating products of our customers. Unlike many other distributors who buy products from second-tier sources, the Company takes customers to the source of the products they need. At December 31, 2024, the SCS segment operated supply chain installations in 86 of our customers’ sites. All of the SCS segment’s long-lived assets are in the U.S. and Mexico. The majority of the SCS segment’s 2024 revenues were recognized in the U.S. At December 31, 2024, the SCS segment had 397 employees, all of whom were full-time. Products Most industrial customers currently purchase their MRO products through local or national distribution companies that are focused on single or unique product categories. As a first-tier distributor, our network of service and distribution centers stock more than 60,000 SKUs and provide customers with access to more than 1,000,000 items. The Company tailors its inventory and leverages product experts to meet the needs of its local customers. Given our breadth of product and our industrial distribution customers’ focus around specific product categories, we have become customer driven