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 Y
Materials Usage Reduction
Annual 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 Gains
Avg Employee Burden Labor Rate $20 $20
Avg # 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 Gains
Fully-burdened Rate per Crib Attendant $20 $20
# of Crib Attendants 3 1
# of Crib Attendant Reassigned 0.5 0
Annual Savings $19,200 $0
Vending Costs
Number of Machines Needed 4 2
Average Annual Cost of Machines $24,000 $12,000
Net Annual Savings $69,638 -$1,425
Net 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
– timrosengren@magidglove.com
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

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