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WINONA, Minn.--(BUSINESS WIRE)--Nov 7, 2022--
In recent years, Fastenal celebrated two major milestones related to its FAST Solutions program, surpassing 100,000 active FMI Technology devices within customer sites and, later, 1,000 Onsite partnership programs. In October, the company added a third significant milestone to the list, for the first time reaching $1 billion in eCommerce revenue within a calendar year.
Fastenal’s eCommerce platform officially launched more than 20 years ago, but historically it represented a relatively small share of the overall business. This began to change about five years ago with a strategy positioning eCommerce as a critical component of the company’s high-tech, high-touch service model. While many retailers and distributors were racing to move their offline business online in pursuit of a lower cost to serve, Fastenal took a very different approach – using its eCommerce platform to identify opportunities to migrate customer spend from a transactional (and, for the customer, higher-cost) online environment to a more strategic and efficient environment anchored by the company’s Onsite and FMI (Fastenal Managed Inventory) programs.
This focus on big-picture value creation has accelerated Fastenal’s eCommerce revenue growth. Five years ago, in 2017, the company’s eCommerce sales were $245 million, representing 5.5% of total company sales. After hitting the $1 billion milestone in October, Fastenal’s eCommerce sales represent 17.4% of total company year-to-date sales (and 19.9% of its October 2022 sales).
“It’s amazing to see how far we’ve come, especially over the past five years as we positioned eCommerce to strengthen our strategic partnerships,” said Kirk Talmontas, Fastenal’s vice president of eCommerce. “It’s a testament to the innovation and dedication of all the team members who have made this happen.”
“We don’t often think of eCommerce as our primary go-to-market strategy, but it’s become a vital part of our ‘digital footprint’ – the technology we provide to streamline and illuminate the supply chain,” added Dan Florness, president and CEO of Fastenal. “Thanks to the hard work of the entire Blue Team, we’re taking eCommerce in new directions in our industry and finding new ways to create value for our customers.”
About Fastenal
Fastenal provides a broad offering of industrial supplies, including fastener, safety, and metal cutting products, to manufacturing, construction, and state and local government customers via more than 3,300 in-market locations (branches and customer-specific Onsite locations) spanning 25 countries. With continual investment in tailored local inventory, dedicated local experts, and flexible FMI ® (Fastenal Managed Inventory) and digital solutions, we help our business partners achieve product and process savings across the supply chain – a “high-touch, high-tech” approach encapsulated by our tagline, Where Industry Meets Innovation™. Our local service teams are supported by 16 regional distribution centers, a captive logistics fleet, multiple teams of industry specialists and support personnel, and robust sourcing, quality, and manufacturing resources, enabling us to grow by getting closer to customers and providing innovative and comprehensive solutions to customer supply chain challenges.
Additional information regarding Fastenal is available on the Fastenal Company website at www.fastenal.com.
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CONTACT: Taylor Ranta Oborski
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KEYWORD: UNITED STATES NORTH AMERICA MINNESOTA
INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY OTHER MANUFACTURING STEEL MACHINE TOOLS, METALWORKING & METALLURGY URBAN PLANNING MANUFACTURING RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: Fastenal Company
Copyright Business Wire 2022.
PUB: 11/07/2022 05:05 PM/DISC: 11/07/2022 05:06 PM
http://www.businesswire.com/news/home/20221107006062/en