The 2020 Mid-Year Economic Update_long

October 10 2013

Vending's Growing Pains + Interview with Fastenal

Volume:

43

Issue:

19

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Features
Fastenal vending machine with man selecting item

Fastenal is largely credited with driving the latest boom in industrial vending services among distributors. Fastenal had nearly 30,000 vending machines installed as of the end of the second quarter 2013, and while it recently backed off on its goal of 30,000 new vending machines this year, it continues to expand its program, called FAST Solutions, at a quick clip. Fastenal’s vending program has grown much faster than the competition’s.

This article is part of MDM’s series on the industrial vending market.

Staff Writer Angela Poulson spoke with Fastenal CEO Will Oberton about:

  • The impetus for Fastenal’s vending program
  • Why Fastenal backed off its aggressive goal for 2013
  • What's next for Fastenal's vending program

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Industrial Vending: A Runway for Growth
  • Distributors Get Smarter About Vending
  • The Counterfeit Challenge

Purchase the full MDM Special Report, The Industrial Vending Boom, in the MDM Store in PDF format.

growth-tape-measure-plant

Distributors are now driving record growth in industrial vending adoption among end-users. Even though vending has been around for a couple of decades in the industrial space, many say it still has a huge runway for growth. But as with any trend in its “infancy,” distributors looking to expand their vending services are faced with challenges, from initial investment to profitability to getting up-to-speed quickly on all available options to effectively respond to customer demands. This article examines key challenges identified by distributors and provides best practices for addressing them.

This article is part of MDM’s series on the industrial vending market.

This article includes:

  • Why distributors should take an offensive stance with vending
  • The challenge of profitability & product mix
  • Vending's impact on relationships
  • The importance of aligning expectations around vending

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Industrial Vending: 'A Runway for Growth'
  • Distributors Get Smarter About Vending
  • Vending 'Explodes' as a Service

Purchase the full MDM Special Report, The Industrial Vending Boom, in the MDM Store in PDF format.

In his book Islands of Profit in a Sea of Red Ink, MIT Senior Lecturer Jonathan Byrnes says that most of a distributor’s customers are unprofitable while a few are so profitable that they more than subsidize those losses. In the recent MDM Webcast, How to Secure and Grow Your Islands of Profit Customers, Byrnes shares new tips for identifying and growing business with your most profitable customers and replicating that success with new customers.

This article includes:

  • A look at how profitability has changed in distribution
  • What is negatively impacting profitability in today's market
  • How to identify & overcome the challenges to profitability

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Don't Be Everything to Everyone
  • 5 Building Blocks for Managing Profit
  • Four Barriers to Distributor Profitability
4319Cover

This is the PDF of this issue of Modern Distribution Management.

Table of Contents:

  • MDM Interview: Fastenal's Vending Evolution – part of The Industrial Vending Boom Special Report
  • Industrial Vending's Growing Pains – part of The Industrial Vending Boom Special Report
  • Commentary: Channel Partnerships – Where's the Trust?
  • Building on Already Profitable Business
  • News Digest

Are you a subscriber? Simply log-in to view this issue.

PDF Download
Fastenal vending machine with man selecting item

Fastenal is largely credited with driving the latest boom in industrial vending services among distributors. Fastenal had nearly 30,000 vending machines installed as of the end of the second quarter 2013, and while it recently backed off on its goal of 30,000 new vending machines this year, it continues to expand its program, called FAST Solutions, at a quick clip. Fastenal’s vending program has grown much faster than the competition’s.

This article is part of MDM’s series on the industrial vending market.

Staff Writer Angela Poulson spoke with Fastenal CEO Will Oberton about:

  • The impetus for Fastenal’s vending program
  • Why Fastenal backed off its aggressive goal for 2013
  • What's next for Fastenal's vending program

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Industrial Vending: A Runway for Growth
  • Distributors Get Smarter About Vending
  • The Counterfeit Challenge

Purchase the full MDM Special Report, The Industrial Vending Boom, in the MDM Store in PDF format.

growth-tape-measure-plant

Distributors are now driving record growth in industrial vending adoption among end-users. Even though vending has been around for a couple of decades in the industrial space, many say it still has a huge runway for growth. But as with any trend in its “infancy,” distributors looking to expand their vending services are faced with challenges, from initial investment to profitability to getting up-to-speed quickly on all available options to effectively respond to customer demands. This article examines key challenges identified by distributors and provides best practices for addressing them.

This article is part of MDM’s series on the industrial vending market.

This article includes:

  • Why distributors should take an offensive stance with vending
  • The challenge of profitability & product mix
  • Vending's impact on relationships
  • The importance of aligning expectations around vending

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Industrial Vending: 'A Runway for Growth'
  • Distributors Get Smarter About Vending
  • Vending 'Explodes' as a Service

Purchase the full MDM Special Report, The Industrial Vending Boom, in the MDM Store in PDF format.

In his book Islands of Profit in a Sea of Red Ink, MIT Senior Lecturer Jonathan Byrnes says that most of a distributor’s customers are unprofitable while a few are so profitable that they more than subsidize those losses. In the recent MDM Webcast, How to Secure and Grow Your Islands of Profit Customers, Byrnes shares new tips for identifying and growing business with your most profitable customers and replicating that success with new customers.

This article includes:

  • A look at how profitability has changed in distribution
  • What is negatively impacting profitability in today's market
  • How to identify & overcome the challenges to profitability

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Don't Be Everything to Everyone
  • 5 Building Blocks for Managing Profit
  • Four Barriers to Distributor Profitability
4319Cover

This is the PDF of this issue of Modern Distribution Management.

Table of Contents:

  • MDM Interview: Fastenal's Vending Evolution – part of The Industrial Vending Boom Special Report
  • Industrial Vending's Growing Pains – part of The Industrial Vending Boom Special Report
  • Commentary: Channel Partnerships – Where's the Trust?
  • Building on Already Profitable Business
  • News Digest

Are you a subscriber? Simply log-in to view this issue.