Fastenal expo showcases product demos, training
More than 200 manufacturer suppliers share expertise at employee show
Staff -- Purchasing, 3/3/2005 2:00:00 AM
Quenching a thirst for industrial training, Minnesota-based industrial distributor Fastenal held a trade show for its employees late last year. Exhibiting products at the event were 200 of the distributor's manufacturer suppliers. But it wasn't just a product exhibit. The suppliers—along with Fastenal—conducted an extensive number of educational sessions on a range of topics from carbide inserts to supplier diversity. More than 1,800 employees representing 20% of Fastenal's workforce attended the fourth annual Fastenal Industrial & Construction Expo in Orlando in December.
Will Oberton, president & CEO of Fastenal, conceived the idea of a national expo for employees after attending a smaller, regional event. The show, which has grown over the years, "strengthens our relationships with our suppliers and our employees," he says. It's also good for business: Last year, sales increased 24% to $1.2 billion.
The distributor also held two regional trade shows for customers in 2004. The first, in Ft. Wayne, Ind., attracted 900 customers. More than 1,400 attended a second show later in LaCrosse, Wisc. Fastenal plans to hold a larger customer show for more than 2,000 of its key account customers this June 15-16 in St. Paul, Minn. That show will include tours of the company's manufacturing and distribution centers in Winona, Minn. More than 145 manufacturer suppliers are expected to be on hand. Educational sessions are also on the agenda.
Fastenal is a full-line distributor of fasteners, cutting tools, hydraulics and pneumatics, plumbing supplies, janitorial supplies, chemicals and paint, electrical supplies, welding supplies, and material handling storage and packaging items. It has more than 1,500 stores in the U.S., Canada, Puerto Rico, Mexico and Singapore. In response to customer demand, it recently opened an operation in Rotterdam, Amsterdam and a facility in Shanghai, China.
Most of the employees at the show are assistant store managers; store managers had attended the shows in previous years. On the show floor, attendees had the opportunity to meet with senior sales and marketing professionals from Fastenal manufacturer suppliers that provide MRO (Maintenance, Repair, Operations) items ranging from abrasives and adhesives to power tools and safety supplies. Some manufacturers used the event to introduce new products and programs. Among the exhibitors: Danaher/Holo-Krome, Sandvik Coromant, Kimberly-Clark Professional, Craftsman, and ITW Red Head.
Employees were invited to attend seminars presented by Fastenal and about 30 of the manufacturers. Working with its Fastenal School of Business, the distributor offered such classes as "Continuous Improvement in Supplier Diversity" and its "Direct Ship Product Program," while manufacturers Kimberly Clark Professional taught a course on "Positioning for Profit" and Sandvik Coromant offered a session on "Carbide Inserts Made Simple." About half the sessions were given by Fastenal Certified Vendors. These manufacturers completed a program to ensure their sessions are properly targeted to provide training for store employees that will grow sales. The certification is supported by the School of Business, which provides training to about 2,000 employees every year.
The trade show "is part of how we go to market," says Craig Martin, director of channel development, industrial for Kimberly-Clark Professional (KCP), Safety and Industrial, Roswell, Ga. KCP, which manufactures towel and tissue products, skin care and wiping systems, sent 15 of its employees to the show, including district managers and its regional leadership team. Martin says that it would be nearly impossible—both financially and logistically—for them to visit all the branches in a year.
"Ultimately as a manufacturer we want to get our products to the end user," he says. "With a catalog of more than 1,700 pages, no store manager is going to know every product offered through the company. But the store manager knows his or her customer and, while at the show, has opportunity to learn more about our products and their applications which he can relate back to his customers." KCP has doubled its business with Fastenal in four years.
John D. Jacobsen, director, channel development, Sandvik Coromant, Fair Lawn, N.J., concurs. He says that traffic at his company's booth "is better than at any other national show" and that "attendees are enthusiastic in their meetings" with his company's senior sales staff (Sandvik Coromant held its sales meeting in conjunction with the show.) "While one of our indexible inserts may cost $10, the product can generate significant savings for our customers. At the show, we have opportunity to speak with store managers about these opportunities." Sandvik Coromant manufactures advanced cemented carbide tools and tooling systems for metalworking.
The trade show also featured a mock-up Fastenal store as designed under its Customer Service Project (PURCHASING, Sept. 2, page 62). Through that project, Fastenal enhanced its inventory selection, merchandising and, in some cases, the locations of its stores. It invested $40 million in the project in 2004, opening 151 new stores, upgrading more than 500 others and adding a significant number of SKUs (Stock Keeping Units) to local inventories.
Looking ahead, the company plans to continue to upgrade its stores every two or three years so that each one is "the best in its market," says CEO Oberton who kicked off the event on the first day of the show. About 1,200 employees were on hand for the greeting, which included a welcome address by Bob Kierlin, co-founder and chairman of the board. He spoke of Fastenal's success in recent years which he credits to the company's pursuit of a common goal of "growth through customer service" and "bringing out the full potential of each individual through training, compensation and decentralized decision making."
Additional exhibits at the event showcased Fastenal's manufacturing division as well as Fastco, its subsidiary located in Shanghai. President Scott Camp was available to speak with employees about its capabilities. At separate awards ceremonies, management recognized top-performing branches and long-time employees. DeWALT Power Tools sponsored an evening reception that included product demos and a meeting with 2003 Winston Cup Champion Matt Kenseth.
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