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Safety
zone
Safety products
distributor Safety Today understands that its efforts can make a
difference in the lives of employees and the bottom lines of
employers.
by
Richard Vurva
The
day started like any other at an asphalt plant in Denver. A tanker
truck carrying hot, 400 F asphalt rolled through the gates and waited
for a plant employee to gather a test sample. The employee donned his
protective gloves to guard against the heat and turned the valve to
release the sample. Nothing happened. He turned the valve a second
time. Again, nothing.
Suddenly,
the valve blew, spewing hot asphalt everywhere. The gloves protected
his hands and forearms, but some of the boiling liquid dripped over
the top of the gloves, causing first- and second-degree burns to the
employee’s arms. Fellow workers immediately came to his aid, making
sure he received needed medical attention.
Not
long after the accident happened, plant management took steps to make
sure no other employees in that plant or others like it around the
country would face similar pain and suffering. The company asked its
safety products supplier, Safety Today, to perform a comprehensive
plant safety audit.
Safety
Today recommended that workers wear a full-sleeve protective leather
glove that fits snugly over their entire arm. The Safety Today team
also looked for other potential safety hazards throughout the plant.
“We
spent three days onsite analyzing ‘what-if’ scenarios. What if
this valve breaks? What happens to the employee?” says Mark Micheles,
vice president of national accounts and field operations. The
objective was to help create a safer work environment.
Conducting
safety audits is just one way this safety distributor benefits
customers. Working closely with a customer’s purchasing, health and
safety, or environmental departments, Safety Today also helps
companies standardize personal protective equipment (PPE) product
purchases to lower costs.
Safety
24/7
With
seven branches in the U.S. and Canada and a 95,000-square-foot
headquarters facility near Columbus in Groveport, Ohio, Safety Today
has annual sales of about $32 million. Formerly known as Twyman-Templeton
until being acquired by Volk Enterprises in 1999, the company takes
pride in its ability to help customers create safer work settings.
“We’ve
honed our focus in the last couple of years on multi-location
corporate accounts that are looking for a coordinated, focused safety
program provided by a capable, full-service distributor,” says Ted
Cowie, executive vice president and chief operating officer.
Although
some companies turn to general-line distributors and catalogs to
acquire low-priced safety products, Cowie believes many customers
still understand the value that a specialty safety distributor
provides.
“A
buyer focused just on the cost of the PPE is looking at only a small
part of the equation,” says Andrew Mitchell, vice president of
operations and marketing. “We’re trying to move the pendulum by
saying we can be competitive on your PPE pricing, but what we want to
do is cut down the total cost for keeping your employees safe.”
The
approach works well with major clients, including Toyota Motor
Manufacturing, which awarded Safety Today with its coveted Gold and
Silver supplier awards in 2001 and 2002, and Owens Corning, the
multi-billion dollar global manufacturer of home building products.
John
Becker, global MRO leader for Owens Corning’s worldwide sourcing
activities, says the company expects competitive pricing from its
supply base, but it’s equally important to offer value-added
services that can drive productivity cost savings.
“We
believe the value in having a supplier relationship is not necessarily
in the price, but in the guarantee that they can bring us improved
performance through productivity, through cost savings, consignment,
vendor management and the myriad of programs available,” says
Becker.
He
says strong supplier relationships require working with all levels of
the company’s plants.
“Safety
Today has an ongoing relationship with both parts of our business, the
safety professional and our MRO buyer. We don’t have to spend a lot
of time quibbling about the price of an item. We spend a lot more time
discussing how we can jointly develop opportunities for improving our
bottom line. That’s the benefit of having a company like Safety
Today,” he says.
Creative
solutions
Jeff Klemish, vice president of national accounts and field operations,
says the biggest successes come to customers that appreciate the cost
savings associated with lower lost-time injury rates and workers’
compensation. In the end, companies save more money by having a safer
work environment than they can save by cutting the purchase price of
PPE.
“We
have to keep purchasing and safety happy. That’s always a fine line.
If we can get those two parties together and walk that fine line,
that’s when we make big inroads,” Klemish says.
At
several Owens Corning locations, vending units placed near work sites,
break rooms or locker facilities grant workers easy access to safety
glasses, respirators, gloves and other PPE products.
Becker
expects the units to lower Owens Corning’s PPE costs by as much as
30 percent. Since the vending machines track usage by employees, he
says workers take only those products they need. Plus, by
standardizing on a select few products, the system also lowers
inventory costs.
If
a company wants to have a limited number of gloves or hearing
protection or clothing, that’s all it puts into the vending
machines.
Owens
Cornings went from 213 different PPE items to 23, saving more than
$250,000 a year, says Dan Dimas, director of safety services. Nearly
half of that savings was a direct result of the vending program.
“If
you don’t standardize, you won’t be able to supply the vending
machines. You’ll have too many varieties,” he says.
Vending
machines provide companies with more control, enabling them to track
who checked out the safety equipment and compare PPE usage between
employees or departments.
“Safety
Today gives us utilization reports that tell us how many each
individual has used,” says Dimas. “If there’s an overuse
problem, the employee’s supervisor will ask why he’s using so much
more than everyone else. If there’s a legitimate reason, end of
discussion. If there’s not a legitimate reason, they’re coached on
the proper use of the equipment.”
In
some cases, Owens Corning discovered that some employees were throwing
away ear protection every day, even though they were reusable. That
prompted the company to convert to using more disposable hearing
protection.
“One
customer had a situation where an employee cut his hand and sued the
company, claiming they didn’t provide the proper equipment,” says
Robert Cowling, sales manager for Safety Today’s Brantford, Ontario,
branch. “Checking the records, we found that just the day before, he
dispensed a pair of cut-resistant gloves. The workers compensation
claim was thrown out.”
Some
distributors are reluctant to introduce vending machines into customer
locations because they may ultimately reduce the number of products
the distributor sells, acknowledges Mark Micheles, vice president of
national accounts and field operations. “But it also provides a
value to our customer base. It’s providing an inventory storage
solution and it drives significant savings,” he says. It also
increases an employer’s control over employee use of personal
protective gear.
Information
provider
Safety
Today also keeps customers abreast of new safety standards from the
Occupational Safety and Health Administration (OSHA), the American
National Standards Institute (ANSI) and other governmental, regulatory
or testing organizations.
“When
ANSI came out with a new standard for eyewash, we e-mailed customers a
summary of the new standards,” says Cowling. “That led into
conducting eyewash surveys with several customers to determine if they
were in compliance with the new standard. We then submitted a report
recommending those products that would enable them to comply with the
new ANSI standard.”
After
uncovering an application where a different product might work more
effectively, salespeople don’t automatically implement a product
substitution, however.
“In
our view, there’s a correct way and a wrong way to move people out
of products they’re currently using,” says Micheles. For example,
if a customer used a certain glove, in the past a distributor
salesperson might have suggested substituting an imported knock-off
glove and switch it out without changing the pricing.
“It
was a way for a distributor to improve their margin,” Micheles says.
“We take a more deliberate approach. We go to great lengths to match
up specifically what that customer is using and then make
recommendations. There’s a testing and evaluation process that goes
with that. We don’t just switch something out. When we do make a
change, we document it.”
Another
large customer facility used nearly 20 different types of hand
protection. After performing a comprehensive risk assessment and PPE
survey, Safety Today recommended that the company could achieve the
hand protection it needed by standardizing on four types of gloves.
“Before
changing the gloves, however, we formed a glove committee that
consisted of a line worker, safety department employees and a
buyer,” says Micheles.
The
committee told employees to keep using their existing glove until it
wore out. When it needed to be replaced, they moved to the replacement
glove until it wore out, and then went back to the original product.
The process, which includes documented employee evaluations, allowed
employees to make a fair comparison between the two products and
involved the team in the ultimate decision to change.
In
the end, even though the new gloves cost about $2 more per dozen, the
change resulted in saving the plant about $180,000 because the
replacement glove lasted nearly six times longer.
“They
eliminated a lot of SKUs in their stockroom. We eliminated a lot of
additional inventory we didn’t have to carry for that plant. We
incurred zero injuries from that point on. Overall, it was a huge
success,” says Micheles.
A
new sales attitude
Although
customers are anxious to try any solution that results in cost
savings, distributor salespeople may be reluctant to suggest programs
that might impact their earnings potential. Safety Today deals with
that reality by creating an annual bonus program to award cash to the
top three salespeople who produce the most documented cost savings for
customers.
“They
have to be documented and signed off by customers. We’re
experimenting with it this year to see how it drives behavior. We may
find a way to tie it into everyone’s compensation next year,” says
Cowie.
The
company also requires sales reps to provide regular call reports to
the key constituents at the customer. The reports summarize activities
they’ve performed, problems they’ve solved, plans for upcoming
training sessions and other activities.
“By
having that kind of communication discipline, it makes it a lot easier
for the customer to recognize that we’re doing a lot more than
providing them with products. We’re striving to make their work
environment safer and more productive,” says Cowie. “The more we
require sales reps to communicate with customers in those terms, the
more they’ll develop a relationship that goes beyond a traditional
buyer/seller relationship.”
Ask
any distributor to describe their primary job and you’ll hear a
variety of responses. Some say they’re a low-cost provider of
products. Others tout their value-added services. Some take pride in
helping customers lower their procurement costs and making
productivity improvements. At Safety Today, employees describe their
role in much grander terms.
Says
Mitchell: “We have the responsibility to make sure tens of thousands
of people go home to their families every day.” In other words, they
keep people in the safety zone.
This article originally appeared in the
July/August 2003 issue of Progressive Distributor. Copyright 2003.
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