Why local service is an untapped goldmine

September 5, 2024
By Jason Maes | 17+ years in supply chains

Here's a fact you (probably) didn't know: 93 percent of the manufacturing base in America is less than 30 minutes from a Fastenal branch. 

Said another way, the vast majority of manufacturers in the U.S. have a Fastenal location within a half-hour. 
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Said ANOTHER way, since each Fastenal location houses inventory catered to their local customers, there's no reason you can't have what you need when you need it. 
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5 reasons proximity matters

• EFFICIENCY: With a trusted source nearby, you can quickly address issues, make adjustments, and maintain a steady flow of materials. This agility minimizes delays and boosts production.
• FINANCIALS: Simply put, being close reduces costs. Local partners house inventory and deliver material faster, avoiding logistical bottlenecks … and the associated expenses.
• CONSISTENCY: Drop-shipping seems like it works. Until you notice variations in quality due to long transit times and less oversight.
• ADAPTABILITY: When disruptions happen (and they will), having partners nearby allows you to adapt swiftly. In other words, local partnerships enhance continuity.
• PROBLEM-SOLVING: Face-to-face interactions lead to stronger relationships, trust, and shared goals. NONE of that can be said of drop-shipping.​

Let's break this down. ​​Facilities benefit immensely (yes, that deserves slanty text) from having supply chain partners nearby. It's not just about cost savings; it's about efficiency, quality, and growth. Your growth. 

By the numbers

• 90% - The vast majority of our product tonnage is transported between our hubs and our in-market locations via our captive logistics fleet. 
• 9,000 Trucks - Semis, sprinters, and pickups. You name it, and we run it. Why? So you have what you need. 
• 71% of those 23,000 employees are in sales roles and directly serve our customers. 
• 3,400 Locations - Between branches, Onsites, and even distribution centers, whatever you need, it's not far away. 
• 23,000 Employees - From urgent deliveries to regular inventory stocking, there's someone nearby who can help. 
• 64% yup. About two-thirds of our $1.5 billion of inventory is staged locally for same-day fulfillment. 

True savings
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• $500,000 usd - That's the first-year savings a customer recently saw after doing a Total Cost of Ownership Analysis with Fastenal. 
• 21.2% - Average cost savings opportunity identified for customers who complete a TCO Analysis. 

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What customers are saying...

"One of the reasons Fastenal appealed to me was that they were local. They were already part of this community, part of this town, and they fit right in with our employees from day one. They were very genuine - you could just tell they were being open and honest and not trying to sell us anything. I knew early on that they were going to be the supplier I would pick." - Danny Cooper, Senior Director of Operations at Curtiss-Wright

100,000 Vending devices

Vendor managed inventory is easier when you work with the world leader in inventory vending. 
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Ready to unlock the full potential of local service?

Take the first step towards streamlined efficiency and significant cost savings. Contact your nearest Fastenal location today and discover how our local solutions can transform your supply chain.
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