getting beyond the buzz on ppe vending

The Best Value in Industrial Solutions since 1946

Getting Beyond the Buzz on Vending

Top 10 Questions Most Frequently Asked

Beyond the Buzz on Vending Top 10 questions most frequently asked

The Best Value In Safety Solutions Since 1946

• Of course, there’s the hardware…

1. What makes up a vending program?



… Also known as point of use (POU) dispensing, machines can be located throughout a facility…



…. It’s really about information and connecting with it.

But an effective vending program is more than just about the machines…

For example…

• Consumption by User

• Consumption by Device

• Consumption by

Product and User



2. How can a vending program help reduce my PPE and MRO spend? • Reduced consumption

– Greater accountability – More traceability – Reduced waste

• Increased productivity

– Greater proximity to production line – Reduced travel time to crib – Reduced staffing requirements



3. Does vending offer any other benefits? • Enhanced compliance

– Control exactly what PPE employees have access to – Round-the-clock availability of safety supplies – Automatically generated reports provide detailed

documentation for internal and external audits • Improved housekeeping

and plant appearance • Improved budgeting, forecasting

and cost allocation



4. What are the costs of a vending program? • Equipment

– Buy, rent or lease • Installation and implementation • Training • Application, service and support

– Recurring • Connection charges

– Per connection, NOT per machine • Product • Shipping • Fill services

– Self fill – most popular – 3rd party fill – vending company – Shrink wrapping / rolling of gloves



5. Can vending really generate “40%” in net cost savings? • In the best cases, YES…

• …more typically, savings

are in 20% to 40% range – Current inventory control – Type and number of items

included in program – Number and location of machines – Worker acceptance – Management oversight

• Vending may not be the right

solution for everyone



6. How can I calculate my potential savings?

• Many tools available to help guide you… – Calculators – Surveys

• Enlist the help of your PPE supplier – Expertise at your

disposal

Calculator Inputs

• Annual spend

• % of spend to be committed

• Production labor rates

• Visits to crib

• Average travel time to crib

• % of visits eliminated

• Crib attendant labor rates

• Number of crib attendants

• Number of crib attendants that can be reassigned



Calculator Example

Customer X Customer YMaterials Usage ReductionAnnual PPE spend $365,000 $50,000% Spend Controlled by Vending Program 75% 75%Projected Usage Reduction 25% 25%Annual Savings $68,438 $9,375

Productivity GainsAvg Employee Burden Labor Rate $20 $20Avg # of Daily Visits to Store Room 10 2% of Visits Eliminated by Vending 75% 75%Avg Travel Time to Store Room & Transaction Process Time

10 10

Annual Savings $6,000 $1,200

Personnel Efficiency GainsFully-burdened Rate per Crib Attendant $20 $20# of Crib Attendants 3 1# of Crib Attendant Reassigned 0.5 0Annual Savings $19,200 $0

Vending CostsNumber of Machines Needed 4 2Average Annual Cost of Machines $24,000 $12,000

Net Annual Savings $69,638 -$1,425Net Total Cost Savings % 19% -3%



Vending Alternatives • Z.I.I.P.

– Consignment program • S.O.S.

– On-site safety stores • P.A.H.

– Protection at hand • J.I.T.

– Just in time • “Glove for Glove”

– Exchange program



7. What does the program implementation process entail? • Data gathering

– Period usage – Spend details – who, what, how much, why – Identify savings opportunities – productivity improvements, etc.

• Customer Site Specific Set Up – Employee badge testing – Network and IT connectivity discussions

• Customer Solution Design – Evaluate savings potential – Determine solution configuration

• Recommendation / Proposal / Pricing – Cooperatively develop ROI with the customer – Present proposal and ROI

• Finalize Agreement



8. What land mines should I avoid? • Beware of “Free” vending &

other fine print – Inflated per piece product costs – Minimum usage requirements – Control of what goes in machines – Ownership of vending data – Long term commitment

• Accountability overload

– Impact to worker safety compliance



9. How long does it take for the vending machines to be installed? • Typical lead time is between 4 to 6 weeks

– Allows for successful machine configuration, product delivery, and completion of administrative tasks

• Installation completed in 1 to 2 days – Training should be a critical component

of any implementation plan • How to access the machine • How to fill the machine • How to understand and analyze reporting



10. What type of support is offered once the machines are installed?

Application Service and Support Standard Offering

US Field Technicians - Coverage



How to Get Started… • Contact your local Magid

Sales Representative

• Contact Tim Rosengren – [email protected]

800-444-8010 x. 391

• Visit: www.magidglove.com/magid-ppe-vending-solutions.aspx



Appendix 1 – Hardware Options Available



Appendix 2 - Most popular vending machine used for PPE

getting beyond the buzz on ppe vending

Automotive

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vending company

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program number