Fastenal is predictably one of the first public companies to issue its annual financials at the beginning of each new year, almost immediately after their fiscal year ends on December 31. This year the company issued its initial annual financial statement on January 15.\u00a0 As usual, the document\u2019s superb organization made for a typically, thoroughly insightful, yet efficient read.\u00a0 This type of comprehensive transparency is characteristic of a solidly managed, highly successful and driven company.<\/p>\n
Fastenal\u2019s new year is being ushered in with notable changes in the company\u2019s sturdy executive management roster, along with typically positive annual financials.\u00a0 While this well-managed company leads followers to expect positive economic results, this year\u2019s results are all the more incredible as total sales rose significantly even as the company reported a decrease in its total locations count.<\/p>\n
While annual net sales jumped by over twelve percent to $3.7 billion, total store count decreased by exactly 50, to a total of 2,637.\u00a0 This is a decrease of about two percent.\u00a0 What made up for this net decrease in store count, in terms of annual sales?\u00a0 The company increased its count of FAST Solutions\u00ae<\/em><\/strong> <\/em>industrial vending machines 14.9 %, to a total of 46,855 from the previous year\u2019s count of 40,775.<\/p>\n The FAST Solutions\u00ae <\/em>program <\/em>was initiated just a few years ago to supplement Fastenal store locations, as the vending machines are available to supply product 24\/7 and are located at the convenience of clientele.\u00a0 Fastenal refers to these machines as automated stores.<\/p>\n FAST Solutions<\/em>\u00ae vending machines are designed to Fastenal\u2019s detailed specifications, then installed and maintained by Fastenal at client facilities.\u00a0 As part of the package, customers also receive the necessary comprehensive training on-site.<\/p>\n Fastenal also boasts of its proprietary vending channel concept: The Machine Behind the Machine. This includes unique software which customizes each machine to meet each client\u2019s specific and changing needs.\u00a0 Fastenal then features a distribution center designed specifically for its vending program, with personnel dedicated to maintaining this efficiently supported supply chain.\u00a0 The DC communicates directly with vending machines to proactively ship vend-ready and packaged product to each machine, anticipating individual needs.<\/p>\n Fastenal supports the efforts of its FAST Solutions\u00ae <\/em>vending machines locally through its network of over 2,600 locations, supported by 9,000 local Fastenal representatives.\u00a0 Restocking is locally based and is initiated as each vending machine constantly updates product purchases and withdrawals and automatically anticipates restocking needs.\u00a0 When machines are about to run low on product, local reps receive automated alerts to visit and resupply machines.\u00a0 This provides clients a great efficiency in cost and time, as well as avoiding shortages or delays in obtaining product.<\/p>\n FAST Solutions\u00ae <\/em>vending machines offer customers inventory control and accountability as every transaction is completely reported on a dedicated website.\u00a0 Customers can determine, and if necessary limit, inventory purchases by individuals, departments, jobs or product.\u00a0\u00a0 All transactions are monitored, thus all individuals are held accountable.\u00a0 This is seen as a simple tool designed to reduce waste.<\/p>\n As employees need just a quick walk to a machine to restock their project, loss of time and fuel are significantly reduced, as are costs, as actual store visits decrease.\u00a0 This is seen as a way to increase productivity, while reducing consumption and waste.\u00a0 This certainly accounts for Fastenal\u2019s notable customer loyalty.<\/p>\n The only cost for customers is a monthly software licensing fee of $40 per month per machine.\u00a0 To qualify for the use of machines, companies must spend at least $2,000 per month per machine with Fastenal, including non-vending purchases.\u00a0 Based on the considerable annual growth of the number of FAST Solutions\u00ae <\/em>vending machines in use, customers seem to endorse the program whole heartedly.\u00a0 Fastenal\u2019s annual financials are almost assured success with guaranteed minimum revenues coming from its rapidly expanding FAST Solutions\u00ae<\/em> program.<\/p>\n The new year also brought in executive changes at the very top of the company hierarchy.\u00a0 Late last year, Willard D. Oberton <\/strong>announced that he was relinquishing <\/strong>his position as corporate CEO.\u00a0 It was then determined that company President, Leland J. Hein, would add the CEO position to his presidency.\u00a0 Not surprisingly, the company also stated that Mr.\u00a0Oberton will continue to serve as Chairman of the Board, will continue to maintain an office, will continue to be actively involved in strategic planning and performance measurements for the company, and will continue to serve as a mentor to Mr. Hein. \u00a0Mentoring of senior executives by senior executives-yet another indication of <\/strong>the high degree of <\/strong>teamwork for which truly great organizations strive.<\/strong><\/p>\n Over the past two decades, the company has reported a reduction in annual sales just once, during recession-struck, 2009.\u00a0\u00a0 Of course, 2009 reflects the first full year of the recession.\u00a0 At that time few companies in this industry reported positive results, with relatively flat sales generally thought to be a success.\u00a0 In fact, the overwhelming trend in this industry for years, was a recovery which took Fastenal just one annual report to again announce significant growth.<\/p>\n Transparent and rapid reporting of ever-growing financials, backed by a solidly evolving executive team and dynamic innovations in the supply chain, have long resulted in Fastenal stock flying, though somewhat under the radar.\u00a0 Yet the company continues to be in a position as one of the most solid growth offerings on Wall Street since the collapse of 1987.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Fastenal is predictably one of the first public companies to issue its annual financials at the beginning of each new year, almost immediately after their fiscal year ends on December 31. This year the company issued its initial annual financial statement on January 15.\u00a0 As usual, the document\u2019s superb organization made for a typically, thoroughly… Continue reading Rise of the Machines<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"post-template-no-sidebar.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[5],"class_list":["post-4754","post","type-post","status-publish","format-standard","hentry","category-home-hardware","tag-insight","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/4754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/comments?post=4754"}],"version-history":[{"count":0,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/4754\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/media?parent=4754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/categories?post=4754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/tags?post=4754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}