"Securing the Future"
Features of European distribution of fasteners in the 21st century
Author: European Fastener Distributors Association (EFDA)
Translation: Ignatova D.V.
For decades, wholesale trade has been the supply of goods to various markets in large quantities to the end consumer, or the purchase of goods from the manufacturer in small quantities with subsequent sale.
25 years ago, this formulation corresponded to the activities of most fastener distributors. Fasteners produced in Europe were mainly used only by European countries. Distributors who purchased fasteners from the manufacturer sold them to resellers and consumers.
During this time, major changes occurred in the manufacturing, retail, and construction industries due to increased economic efficiency and lower costs.
Due to high consumer demands, radical changes have occurred in the distribution of goods. As a result, fastener distribution has become an integrated, multi-functional, multi-industry system that functions and interconnects the global fastener supply for major industries in Europe.
Today, fastener distributors play a vital role in the development of European industry and, therefore, the economy.
European distributors supply more than 130,000 varieties of fasteners, from microscrews for mobile phones to bolts for wind turbine construction.
Fastener distributors make a major contribution to the development of the European economy and also provide jobs for specialists.
More than 2,500 large fastener distributors operate in the EU.
Today European distributors:
- have a GPA amounting to more than 2 billion euros;
- provide jobs to more than 44,000 specialists;
- receive annual revenues of 10 billion euros.
The European Fastener Distributors Association (EADC) states that fasteners are important and applicable in all industries:
Aerospace
Automotive
· Agricultural
· Construction
· Mechanical engineering
· Furniture
· Electronics
· Household appliances, etc.
To assemble a modern car, approximately 1,000 fasteners are needed. About 1/3 billion fasteners are used annually in the mechanical and automotive industries.
The European industry cannot function without fastener manufacturers and distributors.
“The industry needs quality fasteners with on-time deliveries.”
The engine of today's industry is globalization. The European consumer wants better quality for less money.
European manufacturers need to ensure stable quality and sales of products.
Suppliers and distributors of fasteners cover these current needs. They supply fasteners from the manufacturer, satisfying all consumer requests. The cost of production has long ceased to play a key role in successful distribution. The main factors are the profitability and efficiency of all “links” of this “chain”. Only if this system functions correctly will the goods arrive at the specified location on time.
Today's fastener distributors have a critical responsibility to support their customers no matter where they are in the world.
Every day, millions of tons of fasteners are supplied, manufactured in accordance with international norms and standards.
European manufacturers increasingly require special fasteners (fasteners with additional characteristics). Therefore, leading fastener distributors engage engineers who, together with the consumer, develop fasteners with special technical characteristics for various industries.
This method ensures not only the efficient use of fasteners, but also the correct installation and assembly.
“The right approach to production is the key to reliable use”
Whatever the field in which fasteners are used, quality is the main criterion.
Therefore, suppliers have to not only use reliable and cost-effective production equipment, but also ensure consistent quality in each batch of products.
This process begins with a thorough assessment and audit of the manufacturer's production capabilities. The key to stable quality is constant and thorough control of each batch of products. The manufacturer must have a wide range of capabilities in order to provide all the stated conditions and provide the necessary technical characteristics of the product: strength, dimensions, corrosion resistance, etc.
“Quality is knowledge, technology and responsibility”
The world's largest and most important supply chains need to be managed effectively.
Wherever products are supplied, the main responsibility lies with the distributor: fasteners of appropriate quality must be delivered in a timely manner to the specified address. It takes a long time to produce and deliver fasteners, so a continuous supply chain is a labor-intensive, demanding process. Personnel must be qualified and experienced.
Inventory management has always played a major role in fastener distribution. Fastener distributors maintain large inventories to offer consumers a wide range of products in stock.
For local suppliers in a small town, the daily consumer demand may be 5,000 pieces of various products, which requires timely shipment and delivery of products from a central warehouse.
According to large European wholesalers and distributors, one of the most important factors is the warehouse system, which implies highly efficient automated warehouse operations.
Effective management of a warehouse system implies not only millions of investments in purchased products, but also the proper functioning of the system itself, equipment, as well as competently trained personnel.
For example, in one of the logistics centers more than 100,000 units of goods are stored, 300 tons of products are shipped daily.
In order to promptly supply fasteners for the assembly of metal structures, distributors assemble and package sets of fasteners, so all the relevant parts are always “at hand” for builders.
Previously, supplying fasteners to an industrial consumer involved loading the product onto a truck or truck and delivering it to a warehouse. Today, products are stored not in a separate warehouse, but on a specially dedicated assembly line (conveyor). Products are on the assembly line for only a few days.
It is the distributor who is responsible for the timely and safe delivery of fasteners.
Supplier Inventory Management (VMI) is one of the most important elements a supplier can use to improve bottom-line results and improve the quality of product delivery to customers. For a European distributor, this is the best solution: goods go from the warehouse directly to the construction site.
Vendor managed inventory (VMI) is a management solution (approach) where the supplier, rather than the buyer, is responsible for managing and replenishing the buyer's inventory. Management principles are agreed upon with the distributor in advance and are subsequently based on sales information provided by the distributor. The supplier is responsible for monitoring sales and inventory.
VMI uses a warehouse location designation system to track finished product inventory and ensure timely replenishment. The supplier takes over the management of the distributor's inventory, i.e. the supplier, having online access to the distributor's database, creates purchase orders for him. Together with the supplier, the distributor has the opportunity to forecast demand for products, plan inventory and product replenishment. With the help of this system, the time and costs of managing the processes of replenishing inventories and fulfilling orders are reduced.
Compared to retail and online stores, wholesale trade plays a key role in the implementation of integrated supply chain management, product quality assurance, and inventory management and replenishment.
Moreover, at the consumer’s request, distributors agree on the packaging and labeling of the product.
Only a wholesaler can provide the consumer with a comprehensive program for selling goods, taking into account all his preferences.
Only craftsmanship can ensure a worthy future for European industry.
The future of European industry lies in the professionalism of modern fastener distributors.
Fastener distributors provide an important and reliable connection between global fastener manufacturers and consumers around the world. European fastener distributors devote significant time to developing and maintaining an active supply of fasteners to further develop the European industry.
