Fastenal Continues 'Journey of Service' With 1,000th Onsite Location
July 18 2019 - 5:05PM
Business Wire
In early June, Fastenal announced a milestone after its active
vending device count surpassed 100,000. The vending milestone has
been quickly followed by another, this one pertaining to the
company’s fast-growing Onsite program. The milestone: 1,000 active
Onsite locations, each providing a customized local supply chain
within (or very near) a customer’s facility.
The milestone Onsite is being set up within the Rocanville,
Saskatchewan facility of Nutrien, the world’s largest provider of
crop inputs, services, and solutions. It’s one of three dedicated
Fastenal service/stocking locations that have been customized to
meet the needs of specific Nutrien facilities. The service models
range from a location within a Nutrien plant (Rocanville), to an
offsite location situated across the street from a Nutrien facility
(Aurora, North Carolina), to a larger location servicing five
surrounding Nutrien sites (Saskatoon, Saskatchewan).
“Some of our locations are in remote areas, so an immediate
benefit of a Fastenal Onsite program is that it shortens supply
chain from a distribution standpoint,” said Rob Gilmour, MRO
category manager for Nutrien. “Integration is also very important
to us. Having a fully dedicated Fastenal resource allows us to step
away from tactical activities to become more efficient and focused
on our core business.”
Like many aspects of Fastenal’s service, the Onsite concept came
in response to a specific customer need. In 1992, a large
manufacturing plant required more inventory than the local public
branch could fit on their shelves. They also wanted Fastenal to be
in their facility on a daily basis to assess their needs and
replenish inventory. So they proposed a novel idea: bring the
inventory and the Fastenal rep within their four walls to support
their operation on a full-time basis.
Fastenal went on to open more of these ‘branches within a
facility,’ but at a slow pace (usually fewer than ten per year).
This began to change in 2014 when the inherent efficiencies of the
model became apparent and the decision was made to bring greater
focus on developing and growing this area of the business. The
concept was embraced by Fastenal’s employees and customers, and
Onsite quickly expanded from a niche offering to a company growth
driver.
Thanks to the efforts of Fastenal’s sales and implementation
teams, the number of active Onsites increased from around 200 at
the end of 2014 to nearly 900 by the end of 2018. At the close of
the second quarter of 2019, there were 1,026 Onsites generating
over 25% of Fastenal’s total revenue. To put the 1,000th Onsite
milestone in perspective, it took Fastenal nearly 35 years to open
its 1,000th public branch (Kapolei, Hawaii, 2001).
“Onsite is a natural progression in Fastenal’s 50-plus-year
journey of service, bringing us even closer to our customers in
terms of proximity and partnership,” said Kris Van Dalen, a vice
president of Fastenal Solutions. “The value we deliver through a
customized supply chain management program is differentiating our
company in the market, strengthening our customer relationships,
and, in turn, driving growth, employee opportunities, and
shareholder value.”
About Fastenal
Fastenal helps customers simplify and realize product and
process savings across their supply chain. We sell a broad offering
of products spanning more than nine major product lines – from
fasteners and tools to safety and janitorial supplies. These
products are efficiently distributed to manufacturing facilities,
job sites, and other customer locations through local service teams
and point-of-use inventory solutions, including industrial vending
technology and bin stock programs (Fastenal Managed Inventory, or
FMI®). Our distribution system centers on approximately 3,200
in-market locations (a combination of public branches and
customer-specific Onsite locations), primarily in North America but
also in Asia, Europe, and Central and South America, each providing
tailored inventory, flexible service, and custom solutions to drive
the unique goals of local customers. These in-market servicing
locations are supported by 14 regional distribution centers, a
captive logistics fleet, robust sourcing, quality and manufacturing
resources, and multiple teams of industry specialists and support
personnel – all working toward Fastenal’s common goal of Growth
Through Customer Service®.
Additional information regarding Fastenal is available on the
Fastenal Company website at www.fastenal.com.
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