For many purchasing professionals, managing demand, or consumption, of maintenance, repair and operations (MRO) items is a next step on the road to becoming more strategic.

These purchasers have consolidated the supply base and are leveraging annual spending for MRO items through national agreements with suppliers. Now, they are looking for additional ways to manage costs and are collaborating with end users and suppliers to find them.

One supplier that is working with customers to better manage demand is Fastenal Co. The Winona, Minn.-based industrial distributor has introduced vending technology called SmartStore that it had on display at its annual spring trade show for MRO purchasing pros.

SmartStore is one in a line of inventory management tools Fastenal employees demonstrated at the Customer Technology Center at the show. Others are SmartScale, an automated bin replenishment tool; SmartScan, a self-serve ordering system and SmartCrib, an inventory management system.

Attendees could also learn about inventory management at educational sessions held at the event.

"Our role at the show is to provide training for our customers and frame the tools around common problems they face every day," says Tim Albrecht, director of customer solutions at Fastenal. "We designed and built these tools to help solve such problems as having too much or not enough inventory and lowering procurement costs."

While SmartStore looks like a vending machine that dispenses candy or other snacks, the device uses online technology developed for industrial applications to keep MRO purchasers abreast of usage and inventory levels.

Cutting tools and abrasives, welding supplies, safety and personal protection equipment (PPE) and shop supplies are some MRO items that SmartStore has capability to dispense to employees. Each device can be customized and has applications in manufacturing cells, remote areas and small workgroups.

Here's how the device works: Employees access the SmartStore using a keypad or by swiping ID cards. MRO buyers control access so workers get only items they need when they need them.

The technology sends data on usage, inventory levels and restocking requirements via the Internet to the customer's local Fastenal store. When inventory falls below set minimum levels, the store delivers replenishment stock and fills the SmartStore.

MRO buyers can view data online realtime and/or receive regular reports from the distributor. They pay only for products the device dispenses to employees.

Fastenal has piloted the device in its manufacturing facility and it is up and running at some customer sites. Early estimates show that by controlling usage, the device can help reduce consumption of MRO items by about 30%.

Pricing for use of SmartStore and related services is included as part of Fastenal's inventory management program offerings.

Also see: Purchasing takes center stage at Fastenal customer event