Leaning into Labor

Leaning into labor

December 1, 2025
By Matthew Lueken | Two Decades in Supply Chains

The headlines of the moment are all about tariffs or geopolitical events. But for teams trying to make products, there’s a bigger issue to address: labor.

So often, hiring comes in waves. I’ve seen a few, and the last one in 2022 had companies unable to retain workers. As a result, Fastenal was often called in to help manage cribs and reduce labor strain. That trend is resurfacing in 2025. Customers are again asking us to step in and provide scalable, Lean solutions.

You need smarter, leaner systems that reduce touches.

Labor is the problem and the solution

When people talk about labor challenges, the focus is often on hiring shortages or retention struggles. But I can attest to the fact that at least some of the trouble lies in how people are being used.

Across industries, I see a recurring pattern: Skilled employees are being pulled away from high-value tasks to perform low-impact supply chain duties.

Engineers are managing cribs.
Chemists are counting gloves.
Maintenance techs are waiting on parts.

However unintentional these inefficiencies are, there’s no denying they sap productivity and damage morale.

Fastenal’s approach isn’t about replacing labor. It’s about repurposing it. By implementing point-of-use solutions like vending, RFID, and IR bins, we eliminate unnecessary touches and walk-wait time. That means fewer trips to the crib and more time spent doing the work you need done.

One example comes from a major manufacturer of semi-trailers. Before Fastenal’s implementation, they averaged 300 crib touches per day. Within three months, that number dropped by more than half. Within three years, it was down to just 15 to 20. The result? Record trailer production.

Because employees were able to focus on the work that mattered.

Yes, labor is a problem. But when that’s the case, teams need to free up every minute that they can to refocus on the priorities.

The path to efficiency

To improve your overall efficiency, you need 1) clarity about what’s going on, 2) control over the process, and 3) the ability to continuously improve.

Unsurprisingly, that’s exactly what a Total Cost of Ownership Analysis delivers. Think of a TCOA as a ridiculously detailed report on your operations performed by supply chain professors. This is not a generic report. It’s a custom roadmap designed to help you understand and optimize your supply chain from end to end.

Each TCOA starts by asking the right questions.

Where are the touches?
Where is time being lost?
What labor is being misused?

From there, Fastenal’s Lean experts build a best-in-class supply chain program that’s specific to your needs. Some ideas will offer ways to reduce costs. Some will be ways to reclaim time, repurpose labor, and ultimately remove friction.

Every TCOA also includes a change management timeline. You aren’t just shown what’s possible. You’re guided through how to get there, often in 60 to 90 days. It’s actionable, measurable, and scalable. And it’s built to grow. What starts with a few vending machines can evolve into dozens. What begins with safety supplies can expand into metalworking, MRO, and beyond.

Efficiency isn't a one-time fix. It's a Lean journey. And a TCOA is the map.

Spending $50K for a $15K savings

There’s a story I often tell about chasing savings. A company I was working with hired a new supply chain professional and told him to lower costs. So, he looks for, “What are my highest movers?”

Right away, he sees his two highest bin items are a couple of stainless-steel pieces that go on a production part. Well, he quotes it out and finds a company that’s 15 cents cheaper than Fastenal. By his numbers, this is a quick $15,000 in cost savings.

He’s convinced this is a win.

But he doesn’t realize buying at that scale has caused headaches. The items come in and people call asking, “Hey, what are these pallets of nuts doing here? Where do these go?”

He didn’t have a plan for storing that much inventory. And their usage rates weren’t going to work through that quantity for ages. So, they find a storage spot that’s out of the way. Then, they assign a parttimer to pull those items to take them to the lines.

Three months later, he calls and asks for help. He says they’ve spent $50,000 on this headache and need a better solution.

The idea was upfront savings on piece price. But the reality was that the total cost of ownership was a burden. This is why you go through the entire supply chain process. If you don’t, these mistakes are bound to pop up.

The takeaways

Labor challenges will always involve hiring and headcount, but these moments are also reminders that you should look at how your existing team is being used. When skilled people are pulled away from high-value work, productivity suffers. And the solution isn’t to replace labor: It’s to repurpose it. Fastenal helps teams do exactly that.

Through Lean tools and Total Cost of Ownership Analysis, we help you:

Reclaim time
Refocus labor
Reduce friction

Long story short, labor isn't just a challenge, it's also your biggest opportunity.

Let's talk! Email [email protected] and we can start talking about your exact situation.