Digi-Key Project Profile PROJECT PROFILE Total Cost Over $3 million Product Wire, EMT/PVC, fittings and other typical stock distributor products Services On-site staffing, VMI, prefab, material storage and delivery, and wire management Estimated Hours Saved 7,815 Estimated Dollars Saved $732,750 THIEF RIVER FALLS, Minnesota Headquartered in Thief River Falls, Minnesota, Digi-Key is one of the fastest growing distributors of electronic components in the world. They needed to expand their facility in Northern Minnesota and had engaged with a contractor, Moorhead Electric, Inc. (MEI). Border States paired up with MEI to deliver customized services to address Digi-Key’s timeline and needs for on-site material and order management. The main challenge to this project was geographic location. The project was in Thief River Falls, Minnesota, and the contractor was based out of Fargo and Minneapolis. MEI chose to work with Border States because of the trust they had in our logistics and project management capabilities. THE SOLUTION The expansion at the Digi-Key facility consisted of over 2 million square feet of space, with 5 levels spanning to a 70-foot ceiling. MEI relied on Border States’ capabilities in providing not only material but customized services at the job site. On-site Staffing Border States embedded an employee-owner at MEI’s job site to streamline the ordering process, delivery, placement of the material and removal of all waste products. Vendor-managed Inventory (VMI) We set up a job trailer for on-site inventory management, which saved time by eliminating the need to search for material across the job site. The material MEI’s crews needed was replenished as the material requirements changed for each phase of the project. We also provided clam shells to various areas of the facility, saving MEI additional time and money by having material closer to point of install when MEI needed it. Prefab We custom designed duct bank spacers instead of using click together spacers. The material was shipped directly to our warehouse where we assembled, stored and then delivered duct bank assemblies to the job site using our delivery truck. Once on-site, the duct bank spacers were ready for the crew to install. Material Storage and JIT Delivery Using our material storage and just-in-time delivery services, MEI had secure storage for over $1 million of materials, reduced the amount of material at the job site and received the right material at the job site when MEI needed them. Wire Management We performed approximately 3,000 wire cuts, saving MEI a half hour of labor with each cut, and installed pulling heads on many of the cuts that increased efficiency at the job site. We also provided custom labels on the spools to help prevent incorrect wire pulls. THE RESULTS Our embedded on-site project personnel planned, ordered and staged the right material when and where MEI needed it, and he removed and disposed of any and all waste products. Providing wire storage, cutting, pulling heads and custom labeling saved MEI $5,200. We processed 407 sales orders, 2,200 sales order lines and delivered almost 500,000 items, allowing MEI to focus on completing the project. In total, we helped MEI save an estimated 7,815 hours and $732,750.