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:
- Premium Pricing: Retail prices can vary significantly from one retailer to another, and products are purchased at a premium as much as 50%! Further, since on-the-spot retail purchases are decentralized, the organization misses out on the opportunity to leverage consolidated purchasing power.
- No Tracking: Retail purchases are difficult to track, at best. In the event of an OSHA audit – or worse, an employee incident, it’s nearly impossible for the organization to prove proper protective equipment was provided to employees, and in appropriate quantities. Additionally, with no tracking, there is no way for the company to ensure employee purchases made at retail conform to industry standards and company safety policy, and it is difficult to monitor – let alone limit – spend by employee.
- Branding Inconsistency: Product availability varies from one retailer to another, so there is no consistency, uniformity, or ownership of the company’s brand image. Plus, retail stores generally do not have the capability to support a professional appearance by customizing garments with company logos.
These costs present an opportunity for employers to substantially reduce costs and streamline FRC procurement. Originally in a rental program supplemented heavily with retail purchases, Stallion Oilfield Services had difficulty tracking retail FRC spending. Now, in a Tyndale managed direct purchase program, Stallion employees can purchase company-approved clothing against their allowances online or from any of Tyndale’s retail locations—at company-approved prices.
With Tyndale’s direct purchase program, companies can negotiate contract pricing, typically saving between 20-40% compared to retail.
A catalog with products selected in advance by management ensures that your workers only purchase company-approved items at company-approved prices, eliminating excess spend on premium items. Our automated program management system ensures all purchases are tracked and reported at the employee level, delivering stringent budgetary control and enabling Tyndale to provide extensive reporting services that minimize your company’s administrative burden.
Employees can order from the company catalog online – at their convenience – and orders ship promptly from our distribution centers in Pipersville, PA and Houston, TX.
Tyndale also honors our contract prices at our retail locations in Midland, TX and Williamsport, PA; authorized employees can visit our stores to try on and purchase company-approved clothing against their program account—especially useful for new hires who need FRC quickly. This provides the convenience of retail with the cost savings of a managed program!
Case Study: Stallion Oilfield Services
Originally in a rental program supplemented heavily with retail purchases, Stallion Oilfield Services had difficulty tracking exactly how much FRC was purchased at retail.
Now, in a Tyndale managed direct purchase program, Stallion employees can purchase against their allowances from Tyndale’s retail locations – in Midland, TX and Williamsport, PA – at negotiated prices. All purchases are tracked by Tyndale’s proprietary computer system, contained by the company’s authorized allowance amounts, and included in all reporting.
This program “allows [employees] to choose what they want, and what they need. It’s their choice as far as size, color, and make” within the options approved by Stallion’s operations team, said Todd Mucha, QHSE at Stallion. At the same time, Stallion’s negotiated pricing allows significant savings below the standard retail pricing.
Ready to Get Started?
Contact Tyndale at 800-356-3433 x679, or request a complimentary consultation to help identify opportunities to streamline your FRC purchasing procedure.
Plus, sign up for our webinar series for a primer on the flash fire hazard and to leverage the real-life experience of others in the industry – like Stallion Oilfield Services – that have gone through the process and successfully streamlined FRC procurement.