OEM FASTENERS

1

OEMOEM FASTENERSIMPORT SERVICES • QUALITY CONTROL • ENGINEERING SUPPORT

CUSTOM MANUFACTURING • LEAN INVENTORY CONTROL SOLUTIONS

2

Fastenal combines the industry’s most extensive local service network with best-in-class sourcing, logistics, engineering, and manufacturing resources to provide high-quality parts in ways that optimize productivity and profits. With 2,600+ stores spanning North America and the world, we offer a compelling value proposition for our OEM customers: dedicated local inventory and personnel, backed by consistent contract pricing and wide-ranging services, solutions and specialists.

Documented Cost SavingsThrough lean practices and exceptional service, we will work to reduce your expenditures and inventory assets, increase revenues and productivity, and continually improve your processes. Hard and soft cost savings will be captured through our point-of-sale system and reviewed on a regular basis along with accountability reporting and key performance indicators (KPIs), providing a clear snapshot of our business impact.

Key Cost Savings Drivers:

• InventoryControl&Reduction

• GlobalSourcing/ImportServices

• VendorConsolidation

• ProductStandardizationandSubstitutions

• ContractPricing(globally,nationallyorregionally)

• ReducedFreightExpenditures

• E-BusinessSolutions

• LeanSixSigmaSupport

Creating Flow, Eliminating WasteUtilizingtheLeanSixSigmaprocessknownasDMAIC,ourteamofbelted

specialists can collaborate with your personnel to collect baseline data and do a “lean waste walk” – traveling the path of material flow and conducting interviews

touncovernon-value-addedactivities.Basedontheinformationgathered,a GapAnalysisispresentedalongwithabusinessplantoachieveaspecificcost

savings goal. Implemented solutions can include kanban, justintime(JIT),6S,industrialvending,point-of-usedelivery

stations, and other lean concepts. Learn more about our inventory control capabilities on page 6.

Supply Chain & Value Stream Analysis

Local people and inventory at 2,600+ store locations

3

Engineering SupportOur team of fastener application engineers will be available to answer technical fastener questions and offer solutions to standardize fastener usage, avoid application issues, and ultimately build a better product, more efficiently. Fastenal’s engineering services and resources include:

• TechnicalAdvicere:FastenersandFastenerStandards

• BoltedJointDesignAnalysis

• On-SiteFastenerTrainingsandSeminars

• Application-SpecificTesting

• ProductandProcessAnalysis(teardownstoidentifyopportunitiesfor part reduction, consolidation and standardization)

• ReverseEngineering

• ExtensiveTechnicalResources(includingonlineresources at www.fastenal.com)

Quality Management SystemTo ensure strict product quality, we’ve built ourcorporatefunctionsaroundtheISO9001:2008standard,andwe’re registeredatlocationsworldwide,includingourdistributioncenters,ourAsia-basedglobalsourcing/importingoperations,and our manufacturing facilities.

In addition to supporting the standards our customers require, our Quality and Engineering teams play an active role in the organizations that define global fastener standards in terms of dimensions and chemical properties, participating in morethan40committeeswithinorganizationsthatincludeASTM,ASME,ISO,NACE,ASM,API,RCSCandSAE.

In-House A2LA LabsTosupportourqualitysystem,weoperatefiveISO17025accredited(A2LA)producttestinglaboratoriesaroundtheworld(Minnesota,Connecticut,China,Malaysia and Taiwan). With a multimillion-dollar investment in lab equipment, our testing capabilities range from dimensional inspections to destructive and non-destructive evaluation, including charpy, tensile, salt spray, hardness, positive material identificationthroughXRFandspectrometer,magparticle,andliquidpenetrant.

Our Current Quality System Includes:

• Documentedandimplementedsupplierapprovalprogramwithscheduledon-siteaudits

• 100%fullproducttraceability

• Sampleapprovals,1starticleapprovals

• Productionpartapprovalprocess(PPAP)

• Trackingkeyinternalandexternalandsupplierperformancemetricsto enhance customer satisfaction

• Documented,implementedandauditedcustomer-specificqualitymanagement systems (including enhanced traceability, additional testing, and specialized training for local store personnel)

On-Line CAD Resource Center

MalaysiaTestCert#1046.05ShanghaiTestCert#1046.04TaiwanTestCert#1046.03WinonaTestCert#1046.01

WinonaCalibrationCert#1046.02HOLO-KROMETestCert#1046.06

Complete scope of accreditation available upon request.

4

Fastenal Import ServicesWorkingwithournetworkof500+corporatelyapprovedmanufacturer-partnersin the Asia Pacific region, Fastenal’s ImportServicesteamprovidesturnkeyglobalsourcingandimportingserviceswithcompleteriskmitigation.

Value Proposition:

• 200+Asia-basedemployeesworkingdirectlywithfactoriestodriveour requirements for quality and delivery

• SupplierQualityEngineersonstaff

• Deepexperienceintheregion–managementof80,000FastenalSKUsin addition to per-print customer requirements

• Rigorousglobalsupplierapprovalprocess,includingfactoryauditsand manufacturing process studies

• Pre-shipmentinspectionandtestinginvolvingourthreeAsia-basedISO17025accredited(A2LA)labs

• Reservedcapacitywithsteamshiplinestoship6,000+containers annually

• Logisticsmanagement–expeditingteam,in-housecustomsclearance

• Liabilityandtransportationinsurance

• Supplychaintransparency–statusreportingofproduction,transitanddelivery

• Flexibledelivery–receiveproductaspartofaVMIprogramorreceivefullcontainer direct shipments (customized delivery solutions)

• CustomersdealwiththeirlocalFastenalstoreteam–sametimezone,nolanguageorculturalbarriers

• Totalriskassumption–FastenalisimporterofrecordtoUSCustoms

• DDPPricing–allpricesincludedeliverytothecustomer’sdoor,dutypaymentsandcustomsclearance

Core Competencies – Customer Per Print Parts:

• MachinedParts

• Fasteners

• InjectionMoldedParts

• Castings

• Stampings

• MetalFabrications

• Forgings

• Bearings

• Rivets

• SteelandS/SBalls

• Fittings

• KittedComponents

• Commodities (Casters,WireRope, Slings,andmuchmore)

Overall # of Containers Imported

# of Containers

Fastenal ManufacturingWithninelocationsand350+skilledmachinists,FastenalManufacturingcanproduceper-printandreverse-engineeredpartswithshortenedleadtimesandqualityensuredbyourin-houseA2LAlabs.InadditiontoourU.S.locations, we operate facilities in strategic economic zones around the world, providing fast, local manufactured solutions for multinational customers operating in those regions.

North America:Winona,MN;Modesto,CA;Wallingford,CT(HOLO-KROME);Rockford,IL;Indianapolis,IN;Houston,TXEurope:Brno,CzechRepublicSouth America:Joinville,BrazilAsia: Johor, Malaysia

Manufacturing & Machining Centers–Withwellover100unitsofCNCequipment and diverse hot heading capabilities, we can produce highly engineeredpartsandaccommodatevirtuallyanyfastener/boltneedfrom#0to4"indiameter.SpecialtiesincludeHotForging,Multi-FunctionTurning,Machining,Bending,Threading,EDMandWaterJetCutting.

Cold Forming–ThroughourcoldformingfacilityinRockford,ILandourHOLO-KROME® facility in Connecticut,weoperate70-pluscoldheaderscapableofproducingmorethan30millionpartsperweek.Commonlyproduceditemsinclude:CapScrews,SocketShoulderScrews,SocketPressurePlugs,SetScrews,Allenuts®,JamScrews,DowelPins,Rivets,LargeHeadwithSmallBodySevereUpsetsand Extrusions,ExoticConfigurations,Semi-SpecialManufacturedLargeWasherHeads,andNon-Standard Product with High Heads.

Raw MaterialsCarbon&AlloySteelStainlessSteelSuperAlloys&DuplexSteelNon-Ferrous&Plastics

Fastenal supports a wide range of standards required by our customers, including NASM, AN, MS, NAS, MilSpec, Aerospace, Defense and many others

Made in USASINCE 1929

5

Global Reach & LogisticsFastenal’sdistributionsystemisbuiltaroundour2,600+storeslocatedin19countriesandall50U.S.states– providing local people and product for our customers around the world.

OurNorthAmericanstoresaresupportedby14regionaldistribution centersaswellasourinternaltransportationfleet(300+bigtrucks, 5,000+localdeliveryvehicles),enablingustotransportheavy materials with minimal reliance on costly third-party carriers. In short, no other supplier offers more products in more locations, and no one moves materials more efficiently.

6

Inventory ControlDrawingondecadesofsupplychainexperiencespanningthousandsofOEMoperations,we will tailor an inventory control program for each of your locations based on proven lean concepts and supply chain best practices. The foundation of our value offering is our local presence. Your dedicated local Fastenal team(s) will continually work to understand your usage patterns and production schedule, keep product stocked locally and regionally to anticipate your demand, and actively manage a lean flow of inventory to your points of use.

Value Proposition:

• Reducedinventory/increasedinventoryturns;localpersonnelwillreplenishbinsasoftenasrequiredtostaywithinestablishedmin/maxlevels–weekly,bi-weekly,daily,evenmultipletimesaday

• Deliverytopointsofusemeanslessinventorybuild-upandfewerinventorytouches

• Eliminationofstockoutages–emergencystockcanbepulledfromlocalstoreinventoryanddeliveredwithin an hour

• Bar-codedinventorywithaccurateitemtracking

• Significantvendorconsolidationopportunity,abilitytosupplyvirtuallyanyfastenerneed

• Reducedpaperworkviaatouch-lessreorderingprocess(blanketP.O.s,P-Cards,etc.)

• Partscanbekitted,baggedandlabeledtospeedproductiontimeand increase traceability

• Qualityreportingdetailingusagebylocation

Solutions Include:

• ProcessMapping/GapAnalysis

• WorkstationDesign

• Just-in-Time(JIT)Systems

• 2-BinSystems

• Kanban(InventorySignalingSystem)

• Point-of-UseDeliveryStations

• Consignment

• KittingAnalysis/Custom-Packaging

• In-PlantLocation(On-Site“Store”ManagedbyFastenalPersonnel)

• IntegratedSupply(InventoryManagementofNon-Fastenal-Supplied ItemsatLowerTotalCost)

Our Goal: 90-Day ImplementationThegoalofourLeanImplementationteamistocompleteany implementationwithin90daysoftheirinitialsiteanalysis.This includes identifying your business goals, mapping your current process, and creating a custom supply system via each local servicing Fastenal store to support your local supply needs.

Implementation involves collaboration on the local and national levels – all coordinated through your national account representative to ensure open communication, minimal interruption, and a consistently high level of service for each of your locations.

Product Compliance SupportGreen, Supplier Diversity, Country of Origin

• Broadrangeofdomesticproductsavailabletoservicefederallyfundedprojects

• VastGreeninitiativesincludingreusablestorageanddeliverypackaging,REACHandRoHScompliantproducts

• SupplierDiversityproductofferings,withdetailedusagereportingavailabletosupportyourgoals and requirements

E-Business SolutionsFastenal.com

• Viewyourcontractpricing

• EditandapproveeQuotesfromlocalstores

• UseOrderTemplatestostreamlineordering

• 55,000+CADillustrationsforfasteners

Integration

You can utilize our e-business solutions to minimize paperwork, processing time and administrative costs. This includes integration via EDI,cXML,leadingportalsandB2Bdirectconnections,aswellasourFastConnectPunchoutplatformandfastenal.com.

Our integration solutions are built on industry standards, and we offer integration via most leading e-business systems and portals, including:

7

FAST ScaleSM

Scale-Based Bin System• Viewandadjustinventorylevelsvia

fastenal.com• Whenstockfallsbelowyour“min”

level, an automated order is sent to the local Fastenal store

• Reducesauditingtimeandeliminatesstock-outs of critical parts

FAST CribSM

Resource Management Software• Real-time,web-basedinventorytrackingand

reporting–accessfromanyPDAortablet• Maintenancemanagement,inventorymanagement,

asset management, and more• Search,findandorderfrommultiplesupplierdatabase

(preloadedwith600,000+FastenalSKUs)

8

OEMFastenersBrochure•07.12JK•PrintedinUSA

OEMGROWTH THROUGH CUSTOMER SERVICEIMPORT SERVICES • QUALITY CONTROL • ENGINEERING SUPPORT

CUSTOM MANUFACTURING • LEAN INVENTORY CONTROL SOLUTIONS