S1-E20 Transcript Supply Chain Purchasing and OSHA Safety Equipment

“Season 1 Episode 20” of Manufacturing Talk Radio
S1-E20-MTR.
Intro: Manufacturing talk radio the only show that takes a look at the obstacle and opportunity open to small and midsize enterprises to manufactures here in America brought to you by All Metals Forge Group with your host Tim Grady.
Hi guys, Well hello everyone welcome back to manufacturing talk radio certainly we are happy to be back on the air with you today like to talk to about a couple of subjects that we have cooking we will be hearing in the upcoming weeks from our friends at the Institute of Supply Management. Today we have an interview with Bill Michaels who is with the Institute of Supply Management so you will be hearing from him and we also have an interview with the folks from Orange safety so that will be some great information for all of us on the just thing to keep everyone safe who is working on the shop floor anywhere in a manufacturing facility. It’s critically important, I know a lot of companies pride themselves in the number of days since their last a the last incident so Bill Michaels as president of ISM services will be discussing how ISM provides training and development support for supply-chain purchasing companies in and outside of the manufacturing industry and the GillTrusdale form More Safety will discuss how his company help manufacturing entities with their OSHA regulated safety issues by supplying personal protective equipment.
Another thing that you ought to be aware of, we talked a couple weeks ago with both Tony Evans who is the chair of the ISM’s committee who puts up a non-manufacturing index report and Brad Holcombe who puts out the manufacturing of purchasing managers index report in the non-manufacturing index report and the non-manufacturing report bumped up 1.1% from its April number so that was the main number it’s now at 56.3, I would encourage you to go to www.ISM.WS to take a look at that report that great information you could really drill down that report is important for manufacturers because it dovetails into a lot of either where e goods are coming from are your finished goods are going to so I would encourage you take a look at that report .
Now a heads up really don’t know what the current status is on this in the last hour if you will, but the West Coast port it looks like the longshoreman’s union is looking at whether or not go on strike if they can’t finalize the contract and their contract runs out June 30, so we’re just six days away. I know that conversations are still going on trying to resolve some contentious issues, including benefits and job security. So a smooth resolution is not necessarily guaranteed that both sides are still at the table trying to resolve it. Here’s a strategy, however, you should tuck in the back of your head at this point were only six days out that if that strike hits going to disrupt your supply chain if you’re bringing anything from overseas. So I think you got to keep in mind that maybe you hold back some good from your supply chain and we take a look at airfreighting them over and I realize it’s always a little more expensive, particularly if you’re good you are particularly heavy to move a lot of weight but I think it’s important to think about not allowing them to come by ship, but allowing them to come by air and realize some of that is already on the ship, so there may not be a lot that you can do about it now, but if you get into a protracted disruption because of a port strike that could really hurt some of you already well aware of this and already on top of it certainly that’s excellent, but those of you who are maybe hearing it for the first time. Think about holding back some of your products and going into airfreight mode so that you can keep your supply chain running at least minimally while we get this all resolved. So those are the four topics today ISM is going to be sharing some information with us in the upcoming weeks about their 30 under 30 program which they announced that the ISM conference is going very well they’re doing that in cooperation with Thomas Net. ThomasNet is going to be sharing some information with us as well in the upcoming week so we will have guests from both of those entities joining us. We will also have some guests from manufacturing itself: we want to pull in some people who are actually there running the show. We have a couple of millennia’s that we will be talking to who have taken over dad’s business and they stepped into the manufacturing operation got in the manufacturing when really that was not on the radar screen when they went to college but you know they’re looking at it a couple of them have gotten into they are running with company, they are doing very well and they found that really manufacturing to be very excited. We’ve been talking about the cool in manufacturing and attracting millennia’s to manufacturing because manufacturing isn’t your father’s or your grandfathers manufacturing anymore. It’s not someone sitting with an air gun driving lug nuts on the bolts but it’s managing the robotics that are driving nuts and bolts of doing so much else in welding all kinds of things and so it’s a lot of robotics reporting, programming and a lot of the new cool green stuff that’s coming out to help the environment come straight out a manufacturer and that sort of their R&D areas[0:07:02] and some of their development design areas, so I encourage you to take a good look at that the manufacturing is an opportunity for you in the very near future.
So let’s get into our first interview which is withBill Michaels from ISM with their services division and hear what Bill has to say about how ISM delivers services to their members across the country. Welcome back to manufacturing talk radio the special guest today Bill Michaels is with the ISM services I have my co-host Lew Rice interview Bill.
Host: Lew how are you today?
Lew: I’m great how you can be bad in Las Vegas Nevada.
Host: And this is great sun, this is fun.
Lew: Bill is the president of ISM services he has been with them a little while.
Bill: Yes
Lew: Tell us a little bit about what ISM services is, this is kind of a new to us.
Bill: ISM service is a new company I ran a consulting company for 23 years was acquired by ISM in 2011 and we really have quite a few for programs, diagnostic programs, learning programs and full consultant programs with companies.
Lew: Mainly dealing with manufacturers?
Bill: Manufacturers as in supply-chain and person, yes.
Lew: I’m also aware that you also have offices in Shanghai what is that all about?
Bill: We do, it’s the same thing a lot of our multinational clients that are looking for training and development supports in China as well as the Chinese national companies are trying to get into the supply-chain space and understand how to improve their purchasing.
Lew: I understand from past conversation with some of the ISM people but I would like to give us some stats on the ISM locations and the number of offices and so on globally.
Bill: Well ISM really has the office in the US and China, but they have 149 affiliate organizations which are you volunteer affiliate organizations that work with ISM.
Lew: They also have their own format on the report on business?
Bill: A lot of the data is collected for the report on business through our affiliate, our affiliate and some key companies.
Lew: Okay! Bill in your role with ISM services what is it in the grand scheme of things that you hope to accomplish with ISM and ISMservices?
Bill: Well there are a couple of things companies come to ISM services when they really want to improve their purchasing or their supply-chain organizations globally. What we tend to do is current state analysis we can go in there we can analyse their organization, their processes, their systems, their people and then develop a programthat is to get them to best practice. So through changing the management program, through development of the team and through development of the people we tend to bring them a lot of constant value improvement and efficiency, so the diagnostics is very helpful. So we have diagnostics on the current state, we also have a competency assessment on the team so that we can look at the team see where the competencies are where the gaps are and then we can drive a training and development program to bring those gaps away.
Lew: So is there a particular size companies that works well for you?
Bill: Our largest company is about 20 billion our smallest is about 30 million so the big range of a when you say training a cost savings.
Lew: When you say training for cost saving and such do you also set up these programs or is it through third parties.
Bill: No! No! What we tend to do is we’ve a diagnostics we look at all of the job roles and purchase in the supply-chain space and what we do we identify as you know is what is the competency that you need in each job role in and then we have a web-based self-assessment that tells us all the prints all that data back and then we look at where the gaps, so the gapsmight be in cost in value improvement, could be in supplier relationship management, risk management and we built a training program customized for that company in that industry so that people get a lot out of the training programs, so the first onethat we’ve done was a pharmaceutical company and we had a $400 million cost in value improvement on a billion dollars spend, so a 40% reduction in cost. It’s not all about cost but sometimes it’s about risk management. I had a biotech company comes and say we really want identify all the risk in this supply chain, it was a really interested company because it had to spend 250 million profit of 7 billion that that company really had a lot of profit at risk but was also biotech company that had a cancer drug to prolonged life, so never want supply-chain or any of the suppliers in their manufacturing chain to shut down so we had to build a predicted model and help them with diversifying the risk. In fact, it’s interesting because today we were introducing a new product; we joined up with a company called Ethos Fair. And Ethos Fair has a survey for identifying the 100 most ethical companies in the world and what they do is they do a survey for risk, sustainability and the ethics so we modify that for purchasesupply-chain, so now we can offer some of our customers the ability looked on the supply-chain identify the risk, identify ethic risk and identifying the sustainability risk and build the program.
Lew: I have a question for you; you started of your section with talking about companies settling from 20 million up. Is there any plan or program in place for small and medium size companies under 20 millionthat can also benefit by some of these programs.
Bill: Sure, we will do on specific training and development programs for the smaller companies especially the smaller manufacturers to help them really identify a strategy how am I going to manage the procurement over the short-term, medium-term and long-term so you want to help the buyers and strategic sourcing managers build program that looks at what I’m going to do for the next one year, which is short-term two years, medium-term, and I think in this environment three years is long-term, we want to go in and we want to see a team that has looked at their categories , have identify all their suppliers global marketplace has really got selection criteria really understands what the cost and value opportunities are what the risk are, what the technology is changing be able to articulate plan even $20 million business, you have to have that.
Lew: What if one of our listeners is interested in getting in touch with somebody at ISM, who they would contact either by phone or URL.
Bill: Sure they should go to ISM look at our website all of our products is on the website Karen Collins is our business development person so she would helpthe company.
Lew: Carrie Collins?
Bill: Karen Collins.
Lew: Karen Collins, thank you. Bill how many people we are talking about when you go into an organization I know it’s a wide range, how many employees are you working with it sound like it could be very a large group of people?
Bill: Our largest client we are doing a lot of training and development with GE, so that our largest client, so we tend to work with all the businesses globally and we really build a couple key instructors that understand the industry.
I think you can’t build a training program for a company unless you understand or build program for the industry, nobody gets interested in which it so they really want to know if they buying steel or if they are buying chemicals or if there is driving the supply-chain for an industry, the training and development you do has to relate to people.
Lew: Sure!
Bill: Because if itdoesn’t you’re not going to get the benefit and it’s just going to be another program, the other thing, I think if anybody is considering a training program that they should think about is how are they going to measure and how are they going to embed skills, because so many companies hire training program send people off for a week and then they put the book on the shelf and forget it, so we like to see companies endorse metric like having a project that people have come through and use and they have to actually use all the tools from the training and development program and after turning their project delivers value, so we have one client does that and they can show on all this cost savings projects a 40-1 return on their training and they can show that they have embedded the training in there instead. So manufacturers didn’t just go ahead and have a training program not think through the metric or not have any return on investment or really they are to save their money.
Lew: This is much like having a IOS program quality program implemented everybody has to be in, everybody has to say what they are going to do and show that they did it, so that’s the same kind of ideology.
Bill: Except for the manufacturer it comes back as a cost or values should have beenor even a process improvement down the supply-chain with inventory or logistics or creating a very, very optimise supply-chain.
Lew: When those folks go through the program Bill do they end up with aCPM or CPS or something of thatnature?
Bill: They come through with it depends on what it is, some company has assets to build procurement academies and the supply-chain academies and in those academies programs we can build in some of the contents from the CPS out. But generally a lot of these programs are focused on what the manufacturer needs what are the key drivers and closing gaps they may have so we can do both ways and we have built both the purchasing and supply chain academy for some very, very large companies.
Lew: In your experience, having been through this for a number of years give us some of the risk horror stories you have encountered.
Bill: It’s incredible because you always see risk has something that gets a lot of attention when you when you have disaster like we had Japan or we had in Thailand and everybody gets concerned about risksand then it intends to go away and off of the radar I think the interesting thing is when I’m with a group of people and I asked them if they have a risk management strategy, everybody raise their hands so I can go into the group that I’m speaking in front of the a 300 people everybody will raise their handand when you ask the next question was how many people go down to the second tier, everybody drops their hand.So in reality you can have as much risk in the second or third tier of the supply-chain as you can in the first and I think that the failure most companies is mapping the entire supply-chain to understand where the risks are.
Lew: I was just reading an article where you recently and somebody said the key question for the CEO to ask when somebody comes up with an idea is ‘okay, great idea’ what happens next and that sounds very similar to what you’re talking about.
Bill: Right! And you know so you look at these companies outsource overseas and never visit and then they have these disasters happen when you’re working and you’re going overseas to offshore, it is important to have a relationship with that suppliers has it is domestically. You got to make sure the factory exists and what was this factory look like and you’ve got to meet people principles behind the deal, you got know there’s not this are being spun off another company. I think a lot of people think that small manufacturers can source from their desk through trading company so they don’t know that they have child labour, some things and that kind of things can screw up a reputation of company. I think it’s very important if you’re sourcing overseas to build relationships go and make sure that you have the same kind of relationship you have domestic supplier.
Lew: From an overview Bill because we’re getting near your available time, from an overview your certainly professional within the ISM world supply management, where do you see manufacturing going in this country the reshoring going it seems as though it’s the hot button subject in the last six months or so at least the day-to-day news markets.
Bill: You know that’s a great question and people asked me that question all the time, they are all excited about the reshoring that everybody’s talking about but you have to think about it the appliance industry for instance, has built billion dollar factories and they are bringing the appliances back but the building lights out factories where you know the people that you need to run those factories are people that can do robotics and programming and manage the lights out factory so you not going to have the assembly factories that you had in the past. So when a plan A business comes back, it comes back very efficiently the other thing that people have learned from the risk management side of Japan or wherever else is that you want to be close to the customer and it really isn’t bad to have duplicate factories so the factors we’re seeing are smaller closer to the customer and probably redundancy capacity, but if you have a problem in any part of the world you have redundancy capacity then you v reduce the risk. So I think my point on the reshoring[0:20:52] is its different jobs, it’s different locations and it’s really going be a different workforce that you need , so the jobs of having lots factories and lots of people building assemblies it’s not going to happen.
Lew: It all could’ve been worked on Iguess in the manufacturing and a lot of different manufacturing areas is this where we see the thrust towards the under 30 crowd these are the folks you know they don’t read the newspaper, they don’t read a book they pick up a cell phone.
Bill: I got to tell you the one thing that’s really been amazing and I was talking a little before the show Ihad a really good friend come by and he runs and manages a very small independent corrugated company what he told, he pick up all these big clients and some of the major retailers and some major food companies and they all want him to go to the new plant. He’s so worried because people are not gravitating into manufacturing he doesn’t know where to find talent to run a new plant, he is even worried about where he’s going to find talent to run the plant he’s got so I spoke to Plastics executives not so long ago Plastic news had a the executive forum. And the biggest problem they have is their work forces of 55+, the tools makers are 57 so we don’t have any programs it went when I grew up was it was okay to go into the trades, it was okay going into manufacturing people tend to be gravitated to colleges and then universities and not many people coming in and that’s a concerns for me.
Lew: We had an article about two weeks ago regarding Hudson County Community College upstate New York and they have been dealing with the issue of making manufacturing cooling sites, so they set up a program and they had these kids who never earned over twenty thousand dollars in their early 20s special training program it’s almost like trade school training, they went through the course 3-4 years, and they’re coming out the other end and they’re getting jobs $40,000,$50,000,$60,000. The negative is they don’twant to live in Buffalo, New York, so they get these jobs and they move away, so it’s been self-defeating upstate New York for examples is still to avoid greatly of manufacturing, so it’s a double edge sword here. So how do you get them to pick up the training and getinto manufacturing and then stay in an area that needs the manufacturing?
Bill: So that is the key so when these jobs come back it’s not the same jobs and the people that we need really need to be a place where the jobs are.
Lew: Do you communicate with you in Michigan State University was at the show I know that the university WisconsinPlatteville do you communicate with any of the universities on what you’re doing as well.
Bill: Absolutely! I mean ISM has a joint venture with the Arizona State University and if you come to our booth to see the caps group and it’s really for its caps researchers, it’s really for advanced purchasing studying and supply chains studies so we have a great relationship with them and a great relationship with the people ofMichigan State and the all of the business schools.
Lew: We’re going to need a name in a few minutes.
Bill: Oh sure! Dr. Cater is over there, so he will have a view on it and they do benchmarking so they can tell you a lot about manufacturing spontaneity.
Lew: Oh that’s terrific we’re kind of reaching about 20 minutes after the hour here, so we’re going to take a quick commercial break and then will be back with our audience on manufacturing talk radio.
Lew: Welcome back to manufacturing talk radio we’re here with Bill Michaels. Bill explains to me I see in your name tagCPS and CPM explain those for me if you would please?
Bill: Oh sure, the ISM for a number years since itwas history was the National Association Purchasing Management in the early days they had a certified purchasing manager qualification so you had to take four exams have a number of experiences yet continuing education to manage that certification and then we change our certification to include supply chain, so as supply chain becomes more important in the field we’re expanding into the inventory side, production side, the logistic side and the planning side and those are all in the new certification which is the certified professional supply manager.
Lew: Okay I also know to kind of wrap up here the focus audience for manufacturing in the future is the under 30 millennial generation. Bill has we wrap up here, what message do you want to send them about manufacturing in the future and their future.
Bill: Well I want to send them a message that the manufacturing in the future is really exciting it’s great to build a product I love manufacturing I love being part of manufacturing and as we integrate suppliers and supply chain, I think that over time what we’re going to see is competing supply chains. I think you know our supply chain will compete with someone else’s supply chain we’re already seeing that in automotive where you have the Japanesesupply chain, theUS domestic supply chain,and European supply chain. I think you have the individual competing supply-chain I think it’s going to be exciting, it’s an exciting career because you know if you’re in the supply-chain side of the manufacturer, you get to travel the world, you get to think about integrating processes you to think about designing the supply-chain networks, apple is a great example of that I think is a great career for anybody under 30 to get into, is one is going to be a rewarding career intern financially and in job satisfaction.
Lew: So that’s great again Bill Michaels here and we’re going to wrap up our segment with him, Bill thank you very much for being here your information with terrific for our listeners.
Bill: Thank you very much.
Lew: Thank you.
Lew: Now back to Tim to set up our second interview.
Tim: Well thank Paul. I think the take away from Bill Michael’s interview at least one of them is this who is supplying your supplier. He’s very right that’s where it tends to break down, we look at our we look at the person who has our product lasts just before it gets to us and as long as we think they are performing it’s okay, but we don’t look behind them to see who supplying them. So that’s a place for you looking future now are going to go to a quick interview with our friends from Orr Safety and they are the folks who go beyond OSHA compliance with products and services to help everyone return home each day without injury since 1948.
Hi you’re listening manufacturing talk radio and we have a guest here from a safety company, Lew will you please introduce Gill for us.
Lew: Sure. Gill Trusdale, of Orr safety products located in Mount Pleasant, South Carolina. Gill tell us a little about what Orr Safety does.
Gill: Orr Safety is a safety products distributor that distributes anything OSHA regulates, whether it be eye, face, hand and head – any products. PPE is what we refer to as personal protective equipment – for example, an employee at a facility is wearing equipment to protect them from the product for health and safety reasons. It may also be to protect the product from the person, which is often the case in food safety.
Lew: Andyou’re located in South Carolina your sales activity only regional basis or national basis?
Gill: Orr Corporation is out of Lewisville, Kentucky I’m one of senior account manager so I am basically controlling North and South America, so I just happen to live in South Carolina.
Lew: When you saySouth America where in South America Santiago, Chile sometimes in Brazil, Central America, Uruguay, New Mexico and all the way up into Canada from Vancouver, British Columbia, Calgaryall the way up to the Newfoundland, Nova Scotia.
Lew: Do these areas your facilities are going through sales agent, representative type situations?
Gill: Since our role is to call on the manufacturing world our customers would be people that would be manufacturing , people Michelin and Boeing, people that are manufacturing products we be selling them safety to make sure there in a safe working environment.
Lew: So are you selling directory going through a secondary?
Gill: We are sort of the secondary were buying from manufacturers that manufactured your earplug and the hard hat and we’re selling to the end user in this business of safety nobody really goes direct everybody goes distribution it’s not a direct is not a normal path.
Lew: Understood! Gill we’ve been hearing about company moving into theCarolinas, areyou because you’re in the safety industry and those who becomes your customers hearing about the same thing for instance aerospace moving into the Carolinas.
Gill: Absolutely! Boeing just moved into Charleston brought about 8500 jobs and they are basically putting the 787 together and they’re putting it on Dreamliner I don’t know if you heard about that, they putting on the Dreamliner and their flying it to Washington and have it assembled. TheCarolinas are normally non-union of the Carolinas from that corridor of Atlanta,Georgia to basically Raleigh, North Carolina, if I’m not mistaken I think it’s the largest manufacturing job employment placed in the entire country it’s about 190/200 miles it is just one after the other after the other it’s an amazing part of the country as far as that goes.
Lew: California is taking a hit on that.
Gill: They are definitely taking a hit with their tax base, yea exactly it’s not good one way or the other but it’sextremely good for our part of the world, because a lot of military bases South Carolina,North Carolina and Florida when they were closed back in the 80’s 50/60,000 feet just in South Carolina lost jobs and you just don’t replace those kind of government jobs, now Boeing is definitely helping out a lot of others.
Lew: Well the states are giving them a large tax credit and tax benefits and finance benefits to lure them to their areas.
Gill: That’s correct they have really done a very good political job of trying to get Fortune 500 back into the sort of working part of the world they’ve done a good job.
Lew: Gill what size companies OSHA impact?
Gill: OSHA back in the early 2000 became self-funded not sure if you’re aware of that or not, but if OSHA does not write a ticket they do not have money in the bank, so when they’re self-funded, you 15 years ago, you own a welding shop with your brother you probably never see OSHA, so obviouslythey’re not going to come with 25 welding shop, he’s going to Westvaco, he’s going to Alco, he’s going to big deep pockets. Unfortunately, now he’s going to still them but on the way to them going to stop by you and your brother-in-law welding shop and come up with your welding stainless steel there’s no excrement fluoride respirators on your people what going on and that’s a $275 a person per hour that’s there we would like $35,300 if you would please sir and your poor little company is doing a million dollars a year and you’re trying to keep the light bill paid.It’s really for the small business owner Roofer people like, you see your roofer nowI guarantee you’ll see him in full body soul and tied off, you didn’t 10 years ago, you didn’t know what that was.
Lew: I don’t think they have been in the Atlanta area recently.
Gill: In the larger Metropolitan areas it is a little less focused on the small business owner but you get 20-30 miles from Georgia and you get down south you get into Meacham I’m telling you the contractorsare the worst offendersusually and unfortunately the biggest targets.
Lew: I didn’t realise that I always thought it’s the big Fortune 500 that was haunted by OSHA not the little guys.
Gill: And again they are definitely haunted, but they have accessibility if you want to make an extra $10,000 a month at your job, you can just go write tickets to get that money that’s the process.
Lew: We were talking before the show you were talking about death cradle-to-grave;solutions for your products can you give us some detail on that.
Gill: Years ago we did quite a bit with the assessment phase come in, normally you get called in when there’s issues OSHArecordable is up God forbida fatality has happen or a very bad accident that’s normally unfortunately when you called. With that, we were always solving those problems with product but now we started to look at and say is we really need to before an accident lets come in and get you sort OSHAplan put together in case OSHA comes in as long as you have a plan, they’re perfectly fine, backing away from knowing that you’re working toward resolution so we come back with let’s look at assessment, what are the issues let’s look at every single application thing done in the manufacturing facility and then look to evaluating that process coming up with a product is to be A: most economical and B: it’s going to be the safest, so safety wins, purchasing wins, maintenance wins,the environment people wins . So we’re starting with product were moving the training going to the assessment phase and if at the end of the day, we’re training the trainers so were respirator fit testing instead of us coming in and doing the respirator fit testing we’re working with the manufacture and have them do it, we’re training the people at the manufacturing facility while we’re doing it they can do it as well learn how to do it when we don’t happen to be there and they hire 20 new employees on Christmas eve they can get it done themselves and it really shows some empowerment to OSHA were actually training their people.
Lew: Gill is this strictly, is OSHA strictly regulating andpursuing manufacturing or nonmanufacturing as well.
Gill: For the most part they’re mostly focus on manufacturing not saying everything is not manufacturing post but Iit would have to be a very high percentage because manufacturing is where you have people and people is what they’re protecting so it’s not a machine, if the machine guard breaks that has nothing to do with OSHA but if the person holding machine guard is not in the right cut resistant gloves to his hand cut that is something that has to do with OHSA so I would say manufacturer is really most of their focus.
Lew: You already commented on reducing OSHA’s recordable can you explain that?
Gill: When the scenario is your working at a facility let’s just say for hypothetically purpose you’re working in a tyre manufacturing facilities and something happens and you accidentally get your hand caught in a machine and you get the finger damaged, cut or caught cut off or whatever that is an OSHA recordable, they have recorded the fact that an accident has taken place so the more accidents or recordable that take place the next person in line very much like your car insurance when you wreck your car, it seems like the insurance agent finds out before you get to the hospital and your rates don’t tend to go down they go up, they look at OHSA recordable and they say while you have 6 recordable this year your insurance rates unfortunately, is going to go up it’s all an actuary table no different from car insurance and anything else. Luckily there are some companies that allows you to get better auto insurance coverage depending on where you are willing to search for it. So by looking at it and putting the cradle-to-grave process in place it makes OSHA very understanding and aware that we are working with our manufacturing facilities to make sure before there is an accident were trying to cover all the applications of personal protective equipment for their employees.
Lew: Not to be cute if you do get recordable do you also get a ticketfrom OSHA?
Gill: You do not get a ticket from OSHA unless unfortunately, it was a fatality absolutely. OSHA has to power to go into a large manufacturing facility let take Boeing, they can gointo Boeing and within 24 hours they could shut that entire plant down with basically no information they would have to give to anybody and be under complete investigation or they can shut down your brother-in-law’s welding shop either one. So they have the power to do whatever it is, they want to do in order to process, not a good scenarios so the process is always have a plan always have a calendar saying you’re going to evaluate every commodity PPE and when OSHA sees that you prepared and you’re preparing it and constantly revaluating it so you’renot necessarily going to get a ticket person next to you in the next plant this doesn’t have that path of lethal resistance.
LEW: And the PPE stands for what?
Gill: Personal Protective Equipment so if goes on your body, your personally protecting yourself with equipment.
Lew: Okay, is there is website you have that people can learn more about your company?
Gill: It’s www.orrsafety.com.
Lew: Okay so how many products you havein your portfolio if you will?
Gill: Well the last count changes not daily but it changes probably monthly, there were 658 manufacturers of safety equipment in the industry we are set up with all 658right now currently, just in safety equipment $20-$25 million worth of inventory sitting in the US in our warehouses by 75 to 80,000 SKUs.
Lew: Amazing, Amazing.
Gill: Now when you think of gloves five sizes, that’s five SKUs.
Lew: None the less it’s five sizes but it maybe rubber gloves, leather gloves, plastic gloves, latex gloves [laughing].
Gill: Well it’s like it a letter driver’s glove would come in small through 3X that would be six SKUs and then a rubber gloves would come in 8 sizes so you know it’s just way too many.
Lew: Still a lot of items.
Gill: A lot, a lot.
Lew: And you have these in your warehouse right?
Gill: Yea we do currently our focus and attention is inventory, the more inventory we have, the more we can ship same day and the quicker the customer can get the products without having to extend their capital purchasing budget to hold inventory for months at a time, they can have it better with what we call JIT Adjust Time Arrangement we use 10 a week lets order 10 onMonday, we will order 10the next Monday and they don’t have to order 400 and for two months.
Lew: And that means you’re selling that’s not the end user? Because the end users are the employee but the end user company directiveis that correct?
Gill: Correct we would be selling to basically Fortune 500, if you look at theFortune 500 every single one of those practically would be a manufacturing company.
Lew: Did I understand that you also are selling directly into companies into Brazil and SouthAmerica.
Gill: Correct we’re doing North and South America, we actually have products that are global we do have a couple very specific products that are global products, we’re selling, I think it was 105 countries or something again there’re 10 products specifically we do for specific oil and gas industry they are used globally but most of the stuff is North and South America.
Lew: And each one of those product becomes sorry each one of those orders becomes a small export?
Gill: That will be correct and they normally we would when we export that type stuff, because of obviously grades, fuel and because of the timing it tends to be container type order, it’s not two boxes of this, it’s a 40 or 20 foot flat container filled with $250,000 worth of goodsand then they get it and that may last themsix months.
Lew: So that’s great we certainly appreciate you being here on our show, is there anything that you’re learned on the show and you want to share with our listening audience before we wrap up here.
Gill: I don’t think so, I appreciate very much for me being asked on the show glad to always support you guys have heard a lot about you and looking forward to spreading the news a little bit more about you guys.
Lew: Great! Anyone who wants to listen to these shows they are mfgtalkradio.comwe will be putting them up over a period of time from the ISM show here live in Las Vegas and they will be podcast that you can download and listen and we appreciate you Gill for being on our show today thank you very.
Gill: Thank you.
Alright let’sgo back to Tim for some final thoughts.
Tim: Gill Trusdale from Orr Safety that’s www.orrsafety.com two takeaways from Bill’s interview: the first is even the small mom-and-pop machine shop has to comply with OSHAso you run a significant fine risk if you don’t and the second is breakout excel and start listing and building your plan of products you use what people need a calendar for having it in place and review your personal protective equipment so that everyone got what they need or you are aware of what they don’t have and it’s in the works should OSHA show up at your door you’re covered, that’s critically important. A quick wrap up on ISM on the nonmanufacturing index business activities up to 62.1% in new orders is 60.5%, so a lot of good stuff, although I know some of you are exactly feeling it yet, this is the slow ramp-up out of the great depression of 2008 and I think that’s what everybody’s feeling everyone is cautiously optimistic, so everyone cautiously moving forward. Nonetheless, the economy is picking up the things are improving will talk more with people from the ISM here in the very near future, lots of exciting things coming out of that we’re going to do some interviews with folks from our good old blaze in Washington and CEOthey’re helping manufacturing and will have some fun maybe that with them maybe not while they’re on the air, but we may have some comments about what we think they could be doing to help manufacturing and of course we will be talking further with Thomas Net in the very near future, they have some exciting programs and information coming out. We appreciate you listening to manufacturing talk radio each and every Tuesday at set 1 pm Eastern Standard Time for those of you who tuned in, you probably found us at www.mfgtalkradio.com, you may find us on some of our guest sites as we put our shows that they were our guest up on their site so will get a little for the region and we would love to work with any of our guests to share that information with them. And we look forward to our show next week and you listening in. Thank you very much for listening to manufacturing talk radio today,
You have been listening to the onlyshow that takes a look at the obstacles and opportunities open to small and mid-size enterprise and manufacture here in America with your host Tim Grady and Lew Weiss brought to you by All Metal and Forge Group.