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.
Identifying Savings Opportunities within Your Current FRC Program
Whether you have a lease and laundry program, a warehouse program, or a direct purchase program, ancillary costs frequently have a material impact on your program’s bottom line. Consider miscellaneous fees, logistical challenges, and management and employee time invested in administering – or problem-solving – your FRC program. And, don’t underestimate the cost of employee dissatisfaction; employees who are unhappy or uncomfortable in their FRC may open the door to costly compliance issues for your company or legal costs in the unthinkable event of an employee injury.
Do any of these scenarios ring true for you and your workers? If so, read on – there’s plenty of room to save on FRC.
- Workers purchase a standard treated FRC shirt at retail for $65 and bill-back the company when negotiated vendor agreements could deliver the same item for 30%+ less, while ensuring purchased products meet appropriate standards and expectations of quality! Plus, in the event of an OSHA audit – or worse, an employee incident – retail purchases are difficult to track.
- Workers are allocated 5-7+ sets of shirts and pants annually, regardless of what products they need and want—with unnecessary, uncomfortable, or unwanted garments sitting in closets, unopened and unworn.
- Outerwear is provided to each worker every year, despite the duplication and lack of need. How much could your company save on unused outerwear while still properly protecting and appropriately outfitting workers? And what other low-use items are replaced more frequently than necessary?
- Workers look to retail to purchase upgraded, fashion-forward FRC jeans – at upwards of $90 per pair – without regards to budgetary impact.
- Workers are frustrated with the industrial laundry and weekly turn-ins have declined significantly — but you’re still paying the same weekly price for the service.
If any of these scenarios hit home, there is significant opportunity for savings.
Leveraging Opportunities to Unlock Savings
Explore common examples of ineffective FRC practices that have real costs—and practical solutions, and learn how to leverage four key cost saving strategies with the next posts in our series (coming soon!):
- Transition out of rental or lease
- Eliminate retail spend
- Streamline procurement costs and procedures
- Spend avoidance
Your company could realize savings of 30% – or more – without compromising on safety and compliance! In fact, in transitioning to Tyndale’s direct purchase program, Stallion Oilfield Services was able to reduce spending by more than 50% in the first year alone.
“For 8 years FRC compliance and program had been a thorn in our side, and I have not heard a complaint or worried about the program in 2 years [since switching to Tyndale],” said Todd Mucha, QHSE at Stallion. “That’s taking time and energy off of my plate and our operations team and putting it back where the focus is, and that’s on our customers.”
Get Started Today, with a complimentary consultation to help identify opportunities to streamline your program. Also, view our on-demand webinar to hear from others in the industry – including Stallion Oilfield Services – who have gone through the process.