The "Operating Supplies" clause outlines the responsibilities regarding the provision, maintenance, and replenishment of supplies necessary for the routine functions and operations of a business. It specifies who will bear the costs and manage the logistics to ensure sufficient availability of these supplies throughout the contract term.
Lower revenue and higher purchased transportation costs, continued investment in technology across all segments, and employee and operating supplies costs related to COVID-19, were partially offset by benefits of lower driver turnover, decreased insurance and claims costs and significantly reduced travel and entertainment costs compared to the prior year.
The increase in operating supplies and expenses reflects the significant increase in the cost of diesel fuel and other petroleum-based products during the quarter.
The adjustment reclassifies spares from net property and equipment to marine operating supplies, an inventory account, for $2.0 million as part of Swire’s historical financial statements.
Other operating supplies and expenses increased slightly as a percent of revenue between the periods compared, due primarily to higher maintenance costs associated with our fleet increasing at a rate higher than our revenue growth.
Operating supplies and expenses increased 1.4% driven primarily by increased toll costs and higher operating supplies and building maintenance costs in response to COVID-19, partially offset by reduced travel and entertainment expenses.
Operating supplies and expenses increased $62.2 million and $78.6 million in the second quarter and first six months of 2021, respectively, as compared to the same periods of 2020, due primarily to an increase in costs for diesel fuel used in our vehicles.
Operating supplies and expenses—net decreased $46.6 million, or 34%, quarter over quarter, largely due to an increase in gains on sales of property and equipment primarily relating to the sale of the Company’s Canadian facility in the first quarter of 2022. Lower cost of goods sold in our leasing business due to a reduction in lease activity also contributed to the decrease in operating supplies and expenses—net quarter over quarter. These factors were partially offset by an increase in equipment rental expense due to port congestion and higher customer dwell time, a $5.2 million increase in expense related to an adverse audit assessment over the applicability of state sales tax, higher maintenance costs due to the recent MLS acquisition and inflationary cost pressures, and additional rail storage expenses caused by network fluidity challenges and increased container count.
Company Overview. Milton was founded in 1943 and is based in Chicago, IL. Milton is a leading provider of highly-engineered tools and accessories for pneumatic applications across a variety of end markets including vehicle service; industrial maintenance, repair, and operating supplies; aerospace and defense; and agriculture.
Operating supplies and expenses. Operating supplies and expenses decreased by $4.9 million, or 10.7%, to $41.1 million for the thirteen weeks ended July 1, 2023 compared to $46.0 million for the thirteen weeks ended July 2, 2022. These expenses include items such as fuel, maintenance, cost of materials, communications, utilities and other operating expenses, and generally relate to fluctuations in customer demand. The main elements driving the change were decreases of $2.5 million in fuel expense on company tractors and $0.9 million in maintenance.
Operating supplies are the goods and materials that are used in the daily operation of a business but are not part of the final product. These supplies support the production process, maintenance, administrative activities, and other routine functions within a business. Unlike raw materials, operating supplies do not get incorporated into the finished goods.
You should utilize operating supplies whenever you need to support daily business activities that do not directly involve the production of goods or delivery of services. These supplies are necessary for maintaining efficient operations in any workplace setting. Examples include:
- Office supplies (pens, paper, toner)
- Cleaning materials (detergents, brooms, mops)
- Break room items (coffee, snacks)
- Maintenance tools and parts
- Safety equipment (gloves, helmets, goggles)
When writing about operating supplies, it is important to clarify their role and necessity in business operations. You might want to highlight their impact on productivity and sustainability of operations. Here is a structured way to write about them:
Example:
Operating supplies are vital for the efficient running of day-to-day business activities. They include items such as office materials, maintenance tools, and safety equipment. Effective management of these supplies ensures that a business can operate seamlessly without unnecessary interruptions.
Contracts that typically include operating supplies are those related to the procurement and supply chain management of businesses. These contracts ensure that companies have a steady stream of necessary supplies for their operations:
- Procurement Contracts: Agreements with vendors for the supply of office, maintenance, and safety items.
- Service Contracts: Contracts for facilities management, which may specify the provision of cleaning and maintenance supplies.
- Vendor Contracts: Agreements with third-party vendors for regular delivery and replenishment of routine operating supplies.
Explicitly detailing operating supplies in contracts helps ensure clarity in supply expectations and obligations between parties.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
An opt-out clause allows a party involved in a contract to withdraw from certain terms or the entire agreement without penalty, usually within a specified time frame. This clause provides flexibility and a means to avoid being bound by contractual obligations under specific conditions.
The "Option to Extend Lease Term" clause grants the tenant the right to prolong their lease for an additional period, commonly under pre-established conditions negotiated at the signing of the original lease agreement. This clause often stipulates the notice period the tenant must adhere to and may outline the terms, such as rental rates or duration, applicable during the extension period.
An "Option to Renew" clause allows a contract to be extended beyond its original term under specified conditions, typically at the discretion of one or both parties. It typically outlines the process for renewal, including notification requirements and any changes to terms or pricing.
Try our AI contract analysis and extract important clauses and information from existing contracts.
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