July 15, 2024 Right Part, at the Right Time, at the Right Price

Volume 27 | Issue 2

Fastener Warehouse is a wholesale distributor and solutions services provider for specialty and standard fasteners for all manufacturing.

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It might not have boded well to acquire a company in 2020 at the start of the pandemic, but Canada-based Fastener Warehouse, a wholesale distributor of industrial fasteners, more than doubled its business during COVID, a time when most businesses struggled with supply chain issues. The reason lies with the transformation of the 30-year old business from a parts supplier to a manufacturer’s fastener inventory and supply chain management partner.

“Our success during COVID, and our success going forward, is the result of our ability to develop client relationships based on mutual values to ensure they get the right part, at the right time, at the right price,” notes Operations Manager Eric von Doellen.

Headquartered in Saskatoon, Saskatchewan with 59 employees on staff, Fastener Warehouse sources the manufacture of a variety of standard Class C fastener parts—nuts, bolts, washers, pin, screws, latches, rivets, anchors—to hold in stock at any given time over 50,000 components for customers in a total of 75,000 square feet in four warehouses, with the main warehouse and headquarters in Saskatoon and other locations in Calgary Alberta, Regina, Saskatchewan and Winnipeg, Manitoba. In addition to standard parts, Fastener Warehouse offers custom manufacturing solutions that streamline the entire build-to-spec process to fit any project’s particular requirements, using both standard metals as well specialized alloys.

Fastener Warehouse’s Vendor Managed Inventory (VMI) system provides customers with a lean and efficient supply chain that dramatically reduces overall costs in managing and procuring fasteners, ensuring optimal inventory levels adjusted according to usage. Customers get easier to manage materials, save on purchase and production planning times, all the while freeing-up floor space for other activities.

The company employs color-coded single and multi-bin systems for quick and accurate product identification. Advanced digital scanning software helps streamline inventory processes and improve efficiencies. Both systems employ advanced Kanban visual signaling methods to manage workflows and ensure precise inventory levels. This results in a significant reduction of inventory-related issues such as overstocking or shortages, resulting in more efficient use of space and resources.

Customized kitting and packaging services ensures seamless integration with end-user production processes prepared for immediate assembly. Pre-assembled kits avoid assembly delays, eliminate risk of cross-assembly, and reduce inventory management complexity. The result is significantly faster-time-to-market with less labor costs.

Quality Gains Customer Trust

“Anyone can sell parts,” notes Sales Manager Kevin Loehndorf. “Understanding customer requirements and earning customer trust and confidence in our ability to manage their inventory and supply chains for high-quality products is what distinguishes us from a mere parts supplier.”

Earning that trust begins with Fastener Warehouse’s ISO 9001:2015 Quality Management Certification. “We’re constantly improving our processes and our measures of excellence,” von Doellen says. “Our manufacturing partners know our expectations and know to meet them and exceed them.”

He adds, “We have an on-site QC testing laboratory that complies with our customers’ concept and engineering departments to ensure specifications are precisely met, with 3D capabilities down to the level of 2 microns. To give you an idea of that kind of accuracy, a single strand of human hair is 50 microns. So, if a part spec isn’t quite getting met, we can quickly identify it and correct it.”

In addition, von Doellen emphasizes that, “Our quality commitment to the parts themselves also extends to the management of parts. Our inventory systems help reduce customer costs by eliminating expensive in-house manufacturing and lowering administrative costs, while also ensuring optimal stock levels to avoid expensive downtime from parts shortages. Equally important, our vendors are integral to our operations, and we appreciate their efforts in working with us in improving supply chain efficiencies.”

Shared Values Gain Customer Trust

Effective management of fastener sourcing for customers across manufacturing sectors— including agriculture, oil/gas, mining, automotive, recreation, entertainment, general light and heavy manufacturing, electronics, forestry, and utilities—is just one part of the Fastener Warehouse’s value proposition. Of equal importance is the company’s commitment to ESG (Environmental, Social, Governance) principles.

“There’s growing awareness of the need to minimize our environmental footprint. Fastener Warehouse requires our manufacturers to employ sustainable practices for materials sourcing as well as production and delivery that balance performance with environmental responsibility,” von Doellen says. “We adhere to ISO 14001, the global standard for Environmental Management Systems, and are dedicated to reducing waste, conserving resources, and adopting eco-friendly technologies wherever possible.”

He adds, “We do that not only because we truly believe it is the right and ethical thing to do, but because our customers also believe it is the right and ethical thing to do.”

Safety and Human Values

A better working environment is another goal of ESG principles. Despite many improvements forced and child labor, human rights and safety abuses remain an issue in many parts of the world. Fastener Warehouse insists on stringent safety protocols and regulations that ensure the safest possible working that align with ISO 45001, the international standard for Occupational Health and Safety Management Systems.

“We only work in regions that share our values relating to safety and human rights,” von Doellen says. “The more we demand of our manufacturing partners, the more manufacturers will rise to meet those demands.”

Costs, Price, and Education

Of course, pricing is always a key consideration in winning and retaining customers. “Following COVID, we’re proud of the fact that we were able to maintain sales without any major price increases,” Loehndorf says. “Covid periodically shut down many parts of the world and started a global Supply Chain crisis that continued through 2023. A lot of our resources were focused on sourcing and delivering products to our clients through an unprecedented time. We did, however, continue to focus on understanding and controlling costs within our system as well as with our clients. We are very proud of the fact that during a time when raw material shortages and price increases as well freight costs were six to seven times more than normal, we were able to meet our clients’ needs without any major price increases by employing some creative procurement and inventory strategies. We continue to work hard at understanding and reducing costs for the mutual benefit of our clients and us.”

Another way to keep price down is to improve efficiencies on the customer side. “Our customers are our partners. Understanding their requirements is the first step in that partnership,” Loehndorf says. “The next is to apply and share our expertise and experience with them to ensure they get exactly what they want, when they want it at the best cost. This forms the foundation of the deep-seated trust and personal connections we establish with our clientele. ”

Fastening Growth

A more general business stable environment also means slower growth for Fastener Warehouse. “While we do not anticipate the level of growth we witnessed during the pandemic, our objective remains to pursue expansion opportunities.,” Loehndorf says. Part of our growth strategy is expansion through acquisition. In january we acquired Ridgeline Fasteners, a Calgary supplier. They were a good fit for us because their values and product quality aligned with ours. This helps broaden our geographic reach and leverage Ridgeline’s established relationships into other industries. We’re looking at similar kinds of acquisitions to expand beyond our base and grow the business.”

Currently, Fastener Warehouse primarily serves western Canada and Midwest United States, and is most well-known in the agricultural industry. “That’s the origin story of Fastener Warehouse,” von Doellen says. “It started out back in 1994 in an 1800 square-foot warehouse to supply nuts and bolts to agricultural manufacturers. Since then, and with our acquiring the company, Fastener Warehouse has expanded into all manufacturing sectors and we’re selling internationally. We’re looking to grow not only through acquisitions, but also by adding products and benefits for our customers. Our aim is to constantly meet the demands of our customer partners, on time, every time. That’s how we get bigger and better.” 

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