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Reducing Costs by Streamlining FRC Procurement

This is the fourth in a five-part series exploring common examples of ineffective FRC practices that have real costs—and practical solutions. So far, we reviewed common scenarios that signify opportunity for savings, and reducing costs by transitioning out of rental/lease and eliminating retail spending. In this post, we review the impact of streamlining procurement procedures, and in our final post we will examine spend avoidance as a cost-saving strategy.

Many companies don’t realize that the cost of procuring FRC can be significantly greater than just the unit price. As your company evaluates procurement processes and seeks to streamline FRC procurement, be sure to factor miscellaneous fees and logistical challenges into your total spend; these can have a material impact on your program’s bottom line. Pay special attention to management and employee time invested in administering – or problem-solving – the program.

The cost of an inefficient vendor can be significant, as companies like Stallion Oilfield Services know all too well. Formerly in an inefficient rental program, members of Stallion’s operations team were forced to spend more than 50-60% of their day problem-solving FRC issues! Hear directly from Todd Mucha, QHSE at Stallion in this brief video:

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Saving on FRC by Eliminating Retail Spend

This is the third in a five-part series exploring common examples of ineffective FRC practices that have real costs—and practical solutions. So far, we reviewed common scenarios that signify opportunities for savings, and reducing costs by transitioning out of rental or lease. In this post, we review the impact of eliminating retail spend, and in our next posts we will examine two additional cost saving strategies: streamlining procurement procedures and spend avoidance.

Although on the surface retail purchases seem like an easy solution for quickly outfitting workers with flame resistant clothing (FRC), convenience comes at a high cost for employers. In fact, retail purchases pose several significant challenges—and risks:

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How to Save on FRC by Transitioning Away From Rental

This is the second in a five-part series exploring common examples of ineffective FRC practices that have real costs—and practical solutions. In our first post we reviewed common scenarios that signify opportunity for savings. In this post, we explore how to realize savings by transitioning out of rental or lease, and in our next posts we will examine three additional cost saving strategies: eliminating retail spend, streamlining procurement procedures, and spend avoidance.

As organizations look to reduce costs – either as part of an industry downturn, or simply to streamline procurement – transitioning out of rental/lease for flame resistant clothing (FRC) can help companies realize as much as 30-50% or more in direct cost savings! In fact, by transitioning from a rental program to a Tyndale managed direct purchase program, Stallion Oilfield Services cut spending by more than 50%!

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How to Save on FRC During an Industry Downturn – and Beyond!

This is the first in a five-part series exploring common examples of ineffective FRC practices that have real costs—and practical solutions. In this post we review common scenarios that pose opportunities for savings, followed by four posts exploring key cost saving strategies – transitioning out of rental or lease, eliminating retail spend, streamlining procurement procedures, and spend avoidance.

It’s no secret that falling oil prices have challenged the industry over the past year. As many organizations look to streamline procurement – either as part of the industry downturn, or simply to minimize costs and maximize worker safety compliance – flame resistant clothing (FRC) can be particularly challenging.

  • FRC requires a large number of SKUs for styles, sizes, colors, etc.
  • There are typically a high number of transactions and a low value per transaction
  • Clothing is personal in nature, so there are a disproportionate number of issues as compared to PPE safety supply items or other organizational purchases

However, FRC is also an area of significant opportunity for companies to stretch budget dollars and unlock savings–while improving service, selection and worker protection.

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