Where is there Creativity in the Fastener World?
The first time I ever saw a large, cold heading machine in a factory just pounding out bolt after bolt I thought to myself, "who thinks of this stuff?" I sell these products but some machine builder or engineer, once upon a time, had the vision of how you could build a machine that could drop out fasteners by the thousands. I marvel at that creativity. I am not mechanically inclined so I am also a little envious of someone that can think and create that way. But, that is only once example of creativity in our industry. There have been numerous examples of industrial creativity, marketing creativity, logistical creativity.
Either in the late 1980's or early 1990's, Vendor Managed Inventory became popular. I think that was a creative change in the marketplace. I think it was creative when Kainbridge came out with the 1/8 keg (which I think they were the first to do in a big way). Kainbridge might also have been the first company to have a computer site where you could purchase online (not sure they were first but I know they were one of the first I heard about and heard that it was "good").
Another concept I thought was creative was creative when I first heard it was "blended inventory". I'll import what you need but I also have machines to make you the parts if the shipment from overseas is late. I'll "blend" them for you. Some companies got a nice sales boost using that strategy.
We really do not see an abundance of new fastener products coming out that frequently. One company that does though is Powers Fastener (or Rawl for you veterans). Evey year or two they come out with the Spike or some new creation and even though not all these product take off you do have to give them credit for continuing to innovate.
The 80/20 concept has been around for a long, long, long time. Some companies use it effectively and others clearly shoot themselves in the foot trying to implement this strategy. To use this concept effectively requires some creativity. You can use it to strengthen your distribution base or you can use it to insult and piss off many of the customers that helped you grow into the company you are when your new accountant/CEO tells you are implementing the program.
Mike McGuire had the first fastener show. Someone answer this form me -- who had the first fastener magazine? Was it LINK?
I welcome other examples of creativity in the fastener world. I'm sure I missed many. But, what I also am interested in hearing about are trends or developments that you see coming down the road in our industry. I realize that you might not share all your thoughts on a public forum because you might be giving away a $1MM idea. But, what trends do you see? What is something missing in our industry that you would like to see someone develop?
This is not specific to fasteners but I look forward to the day when companies can convert their computer systems over to new systems without temporarily crippling their customer service. Many companies have switched computers only to have their service become terrible for months until adjustments are made. We send people to the moon and we cannot make this transition go smoother???? How is that?
OK you creative geniuses in Fastener Talk land, let's hear from you.
Either in the late 1980's or early 1990's, Vendor Managed Inventory became popular. I think that was a creative change in the marketplace. I think it was creative when Kainbridge came out with the 1/8 keg (which I think they were the first to do in a big way). Kainbridge might also have been the first company to have a computer site where you could purchase online (not sure they were first but I know they were one of the first I heard about and heard that it was "good").
Another concept I thought was creative was creative when I first heard it was "blended inventory". I'll import what you need but I also have machines to make you the parts if the shipment from overseas is late. I'll "blend" them for you. Some companies got a nice sales boost using that strategy.
We really do not see an abundance of new fastener products coming out that frequently. One company that does though is Powers Fastener (or Rawl for you veterans). Evey year or two they come out with the Spike or some new creation and even though not all these product take off you do have to give them credit for continuing to innovate.
The 80/20 concept has been around for a long, long, long time. Some companies use it effectively and others clearly shoot themselves in the foot trying to implement this strategy. To use this concept effectively requires some creativity. You can use it to strengthen your distribution base or you can use it to insult and piss off many of the customers that helped you grow into the company you are when your new accountant/CEO tells you are implementing the program.
Mike McGuire had the first fastener show. Someone answer this form me -- who had the first fastener magazine? Was it LINK?
I welcome other examples of creativity in the fastener world. I'm sure I missed many. But, what I also am interested in hearing about are trends or developments that you see coming down the road in our industry. I realize that you might not share all your thoughts on a public forum because you might be giving away a $1MM idea. But, what trends do you see? What is something missing in our industry that you would like to see someone develop?
This is not specific to fasteners but I look forward to the day when companies can convert their computer systems over to new systems without temporarily crippling their customer service. Many companies have switched computers only to have their service become terrible for months until adjustments are made. We send people to the moon and we cannot make this transition go smoother???? How is that?
OK you creative geniuses in Fastener Talk land, let's hear from you.
I am definitely planning on going to the West show this year. The additions sound great.
This topic is very timely. Since things are not especially booming, it is a good time to take stock of some areas we might take for granted.
One area I have been thinking a lot about involves logistics, specifically our good old friend - drop shipping. Formerly used only for needs of urgency, or for the legendary distributor competitor who we all swore ran his business out of a phone booth (for those of you young fastener freaks who have never seen a phone booth, see here) and carried no actual inventory, drop shipping has a modern, larger place in distribution.
With today's technology, there is no good reason to order $500 worth of fasteners from PFC, Brighton Best, Star, etc. just to unpack it and repack it into new boxes going out to fill three customer orders. There should be a good system for ordering what you need, specifying where you want it shipped, and you're done. Sure most of the big guys will drop ship, but the trick is to have the packing list show that it is from you and to have the end customer's P.O. number and/or part numbers clearly (and consistently) shown. Kanebridge has been doing this (and more) for decades, and have seemed to do well with it, but their product line is still limited and many of their prices less competitive for the general market. Now that most of us have computers in our pockets (sometimes called cell phones) that rival the power of our desktop from 5 years ago, there can be no technical reason for some form of this service not being offered by every "distributor's distributor".
There are potential problems and pitfalls that we can explore (and solve), but I would bet that it would be easy for any basic distributor to switch 30% or more of their orders to drop-ships practically overnight - IF the big guys would offer a reliable service. And I think it's time has come so that it will happen even if some new companies have to step in and take over.
I have been thinking about writing a series on this for a while. I guess now is the time.
By the way - what do we call PFC, Brighton Best, Star Stainless, Vertex, EZ Sockets, Lindstrom and other companies that sell exclusively to distributors? It would be easier to have a discussion about them if we can agree on a name (better that "big guys" or "distributor's distributors") for that part of the supply chain.
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Andy, I know you have your own site but I've got to get you to be a regular "guest blogger" on my site. You always have good contributions.
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I'm game.
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Andy--If you fax/e-mail a copy of your packing slip to Brighton Best Int'l (BBI) they will put it in the box shipping to your customer.
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Thanks Queen Bee. I didn't know that, and will probably take advantage of it. But I want more. I want it to be offered instead of something I ask for. I want it to be a standard feature instead of an option. I want to know that it will work every time because there is a technology in place, rather than hoping that somebody will come through on a workaround favor. I want all of us to have this because it makes sense and it shouldn't be difficult. That's what I want, darn it.
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andy pels -- i represent Solution Industries and the drop ship feature has been a good percentage of our business since day 1. we ship to distributors only , plain boxes, personalized labels and generic packing slips. you are able to ship direct to your customer and the material will look like it was packed from your warehouse. The ability for the distributor to buy exact quantity and mix or match different product groups saves on cutting multiple purchase orders. pricing is competitive compared to the value certainly not at kanebridge levels, this makes it easy for customers to maintain margin levels.
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Definitely gonna check it out, Don.
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