Videos
June 28, 2010 By Andy Opsahl
Photo: Sean Luigs, CEO of Fastenal Co., restocks a vending machine with work gloves, Gatorade and duct tape./Photos courtesy of Fastenal Company.
Some government agencies in Sacramento, Calif., have begun distributing industrial equipment, such as rubber gloves and duct tape, to employees through vending machines.
The approach enables agencies to track which employees take what supplies and how often they go back for more of them. Monitoring this activity cuts costs because managers can identify and correct wasteful employees, said Tom Webber, operations general manager of the Traffic Signs and Markings Division of the Sacramento Department of Transportation (SDOT).
"Everybody is watching their pennies, and this is just a neat way to use an innovative IT solution," Webber said.
Photo: Tom Webber, operations general manager of the Traffic Signs and Markings Division of the Sacramento Department of Transportation.
When employees need items from the machine, they run their identification cards over an optical reader. If that employee is authorized to take the items requested, the machine releases them the same way it would a candy bar and charges the city.
Two of the machines, made by Fastenal Company, are used by the SDOT. Another one serves workers in the Sacramento Department of Utilities, and an additional box will arrive for the Sacramento Department of Parks and Recreation on Feb 10.
The vending stations are connected to the Internet and alert Fastenal when it needs to replenish an item. Webber said that functionality reduces costs, too, because he no longer needed to send employees out to buy those things.
Fastenal transmits monthly reports to Webber about employee usage, but he can use the vendor's Web site to produce reports on individual employees whenever he wants.
In the past, the agencies kept equipment in locked cabinets, and employees just took what they needed. Enforcing accountability for who took what was difficult, said Webber.
Webber wanted to connect the machines to the city's network, which was necessary for Internet connectivity. However, Sacramento's IT staff resisted due to security concerns and the seemingly "small potatoes" nature of the project, according to Webber. As a solution, Webber subscribed each machine to its own AT&T DSL account, costing $40 a month per machine. Webber hopes to change the minds of IT personnel about the project.
"My little test program is starting to expand throughout the city. It makes sense, instead of paying $40 a month to AT&T for every machine we have, to put them on the network so that the city can monitor the traffic and stop that cost," Webber said.
Photo: Shannon Lichty, Sacramento, Calif., Environmental Health and Safety Specialist
The city paid a $1,000 manufacturing fee for each machine and pays a $300 annual fee for technical maintenance. Officials also had to commit to three years of services.
Webber deployed the first machines in mid-2009. He is also considering deploying vending machines for dispensing larger items, like hardhats, safety vests and paper suits for handling hazardous materials.
