CLEVELAND – Jan. 14, 2009 – Corporate United, the nation’s largest group purchasing organization, enters a new three-year contract with leading industrial supplies distributor Fastenal.
The new agreement, which became effective January 1, 2009, offers Corporate United’s more than 140 member companies the opportunity to participate in Fastenal’s industrial supplies MRO contract. The agreement has experienced double-digit growth in terms of aggregated spend and member participation each ear since its inception in 2004.
“As our partner, Fastenal consistently demonstrates the ability to deliver on the terms and conditions set forth in the agreement, while also remaining a trusted and dependable entity during these challenging economic times,” says Marc Rosen, Corporate United president.
Corporate United members receive the following benefits when they participate in the Fastenal MRO contract:
Competitive Pricing on Core and Non-Core Items
Corporate United identified the Fastenal items most frequently purchased by its members and moved them to the core item list. As a result, members will achieve greater discounts on the items they regularly purchase, while also receiving price protection on these items going forward. The core list will now include approximately 16 percent more of the items purchased by members. In addition to refining the core item list, Fastenal will continue to offer an aggressively priced core item list of over 50,000 SKU’s and significant discounts on all non-core items.
Contract and Supplier Management
Corporate United performs monthly auditing of each member’s usage and spend data to ensure that pricing from the supplier is accurate and all terms and conditions are adhered to. Furthermore, Corporate United works diligently to drive compliance through member organizations while delivering regular business reviews to outline continuous improvement opportunities.
Total Cost of Ownership
Corporate United members achieve strategic account status with Fastenal, which affords them dedicated support aimed at finding more savings and efficiency. Members can take advantage of vendor-managed inventory, process mapping and point of use vending units to drive compliance and reduce consumption.
Best Value Items
Corporate United and Fastenal identified nearly 10,000 items currently stocked at local Fastenal stores across the country and worked to price them more aggressively for members. These items are a subset of the core item list and offer greater availability based on their stock position. Best Value Items are not subject to any freight or delivery charges for Corporate United members.
Group Rebate Incentive
Corporate United worked with Fastenal to create a group rebate that better reflects the spend volume of its members. Through the term of the agreement, Corporate United is able to offer rebate tiers that redistribute dollars back to participating members.
About Corporate United
Corporate United is the nation’s leading group purchasing organization, with more than 100 Global 2000 companies across every industry sector collaborating for the purposes of enhancing their spend management efforts, sharing best practices and interacting with an unrivalled network of professionals.
For more than a decade, Corporate United has provided its membership with unique solutions to more effectively manage indirect spend across their enterprise. By combining leveraged agreements with ongoing supplier development and implementation support, member organizations realize savings and resource flexibility. For more information, contact our headquarters at 440.895.0938 or visit www.corporateunited.com.
Company Chairman, Bob Kierlin, founded Fastenal in 1967 in Winona, MN. From this beginning, Fastenal has expanded to become the fastest growing full-line industrial distributor, and is now the largest fastener distributor in the nation.
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