Fastenal’s vending machine milestone
Pierce Manufacturing of Appleton, Wis., recently added three Fastenal vending machines to its facility. When that happened, Fastenal’s total fleet of vending machines at customer sites pushed over the 100,000 mark.
“Thanks to the willingness of our customers to try a new idea, the last ten years have seen vending become an important element within industrial and construction supply chains,” said Dan Florness, president and CEO of Fastenal. “We’re pleased to recognize this milestone with Pierce Manufacturing (an Oshkosh Corporation company) because they were one of our first vending partners nearly a decade ago.”
In a press release announcing the milestone, Fastenal points out that the concept of vending was part of the original plan:
“When Bob Kierlin set out to start the company back in 1967, the idea was to dispense fasteners out of franchised vending machines lining the walls of unmanned retail stores (kind of like ‘automat’ restaurants, but for nuts, bolts, and screws).
“It quickly became apparent that the machine design couldn’t support the sizes and volumes required by potential customers, forcing a pivot to a branch-based service model. What seemed like a setback proved to be an evolutionary step. When Fastenal revisited vending 40 years later, the company was able to leverage a nationwide branch network, a captive last-mile distribution system, and deep inventory management expertise – critical aspects of the current program’s success.”
The numbers tell the story, too.
• 2011: 9,000 vending machines;
• 2012: 27,000;
• 2015: 55,000;
• 2018: 96,000;
Vended sales amounted to $927 million in 2018. According to Fastenal, the most important measure is the impact those devices are providing for businesses -- improved productivity and increased visibility into product usage.
A disruptive force in distribution? Pierce Manufacturing thinks so. “Benefits realized from these solutions include increased efficiencies, more inclusive product availability, and improved visibility and traceability of our expenses,” said Lorien Hegner, operations manager. “Fastenal vending has truly changed the way we do business in the 21st century.”
“Thanks to the willingness of our customers to try a new idea, the last ten years have seen vending become an important element within industrial and construction supply chains,” said Dan Florness, president and CEO of Fastenal. “We’re pleased to recognize this milestone with Pierce Manufacturing (an Oshkosh Corporation company) because they were one of our first vending partners nearly a decade ago.”
In a press release announcing the milestone, Fastenal points out that the concept of vending was part of the original plan:
“When Bob Kierlin set out to start the company back in 1967, the idea was to dispense fasteners out of franchised vending machines lining the walls of unmanned retail stores (kind of like ‘automat’ restaurants, but for nuts, bolts, and screws).
“It quickly became apparent that the machine design couldn’t support the sizes and volumes required by potential customers, forcing a pivot to a branch-based service model. What seemed like a setback proved to be an evolutionary step. When Fastenal revisited vending 40 years later, the company was able to leverage a nationwide branch network, a captive last-mile distribution system, and deep inventory management expertise – critical aspects of the current program’s success.”
The numbers tell the story, too.
• 2011: 9,000 vending machines;
• 2012: 27,000;
• 2015: 55,000;
• 2018: 96,000;
Vended sales amounted to $927 million in 2018. According to Fastenal, the most important measure is the impact those devices are providing for businesses -- improved productivity and increased visibility into product usage.
A disruptive force in distribution? Pierce Manufacturing thinks so. “Benefits realized from these solutions include increased efficiencies, more inclusive product availability, and improved visibility and traceability of our expenses,” said Lorien Hegner, operations manager. “Fastenal vending has truly changed the way we do business in the 21st century.”