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Last
Update 08/25/07 07:48 AM |
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| NOTES |
| The
MSDS-SEARCH National Repository is the most cost effective way
to distribute MSDSs and meet the needs of your customers.
Look
at the companies that have already asked for their suppliers
to make their MSDSs available in the National Repository, then
contact us and lower your cost of
compliance. |
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Incentives |
Common
Vision |
A
common vision is a cooperative effort by all manufacturers to
make their MSDSs available at a single location on an Internet
website. This vision continues to gain support from
manufacturing companies, their customers, industry groups and
governmental agencies. By participating in this cooperative
effort, manufacturers can significantly reduce their
administrative costs to distribute MSDSs, and dramatically
reduce the administrative costs for users to obtain a current
MSDS from the manufacturer. To realize the vision, the
following criteria must be met: |
| Criteria |
-
A
Single Source For All MSDSs
-
Certified
From The Manufacturer
-
The
Most Current Document
-
Readily
Available
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Current
Costs |
Industry
figures suggest that the cost of distributing an MSDS is
approximately $15 per document. This is not unreasonable in
light of well documented studies placing the cost of issuing a
purchase order at $35-$50. But to keep things simple, let’s
assume that you can get an MSDS to your customer for $1 each.
Remember this is a variable
cost, so each time you
respond to a customer request, it’s a buck. Let’s further
assume that you have 50 MSDSs for products you manufacture.
Now, if your customers request your MSDSs 10 times a month, it
will cost you 50 x 10 x 12 mo. x $1 = $6000 per year to
provide your customers the MSDSs they require. |
| Potential
Lower Costs |
The
power of MSDS-SEARCH™ is that it changes
your variable
cost to a fixed
cost. In our example, to place your 50 MSDSs in MSDS-SEARCH™
will cost 50 x $15 (indexing fee) = $750 plus 50 x $1/mo./MSDS
(database maint. fee) x 12 mo. = $600 for a total of $1350 per
year - a savings of over 77%. But look at this: In the first
example, if your customers request your MSDSs 100 times a
month it will cost you $60,000. If on the other hand you use
MSDS-SEARCH ™, your cost is still $1350 - a savings
of 98%! |
Real
Life
Example |
A
Real life example was recently provided by a Fortune 50
petrochemical company. Their current calculated cost to
deliver an MSDS to a customer is $15 per request. Their cost
to provide 1000 MSDSs via MSDS-SEARCH, amortized over 4 years
was: |
|
ITEM |
COST |
|
Index
1000 MSDSs (Treated as Capital Expenditure) |
$15,000
one time expense |
|
Estimated
10% of MSDSs updated per year |
$1500
per year Indexing Fee |
|
Database
Administrative/Maintenance Fee ($1/MSDS/Mo.) |
$12,000
per year |
|
4
YEAR TOTAL |
$69,000 |
|
COST/YEAR |
$17,250 |
|
COST/MSDS/YEAR |
$17.25 |
|
To
emphasize, that's $17.25 to deliver the document for an entire
year as opposed to $15 per request. Likewise, it's $17.25
if you only deliver the MSDS once via MSDS-SEARCH. If you
deliver it only 100 times over the year it's .17 cents per
MSDS, 1000 times it's 1.7 cents. If you deliver it 5000 times
- well you get the idea. The savings are truly astounding! |
Submitting
MSDSs |
Your
documents need to be provided to MSDS-SEARCH in flat ASCII
text or HTML (Hyper Text Markup Language). Indexes are
constructed on four fields:
- Name of Manufacturer
- Name of Product
- Synonyms
- Product Identifiers
(Catalog #, Part #, Formula#, UPN, UPC, etc.)
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| Fees |
Fees
are on a per-document basis:
- Indexing $15.00/MSDS
- Database maintenance
$1/MSDS/mo.
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| How
You Can Help |
Take
the following actions:
- Place the MSDSs on products
you manufacture in MSDS-SEARCH for the convenience of your
customers, and encourage them to use the website to obtain
your MSDSs.
- Inform your suppliers that
you plan to purchase products from companies with their
MSDSs on MSDS-SEARCH where cost, quality, delivery, and
service are equal.
- Implement a program where
purchase contracts encourage the availability of MSDSs on
MSDS-SEARCH as a condition of purchase.
- Ask your
suppliers to put their MSDSs at this central location
|
Support
the
Common
Vision |
TEN
REASONS TO SUPPORT THIS COMMON VISION
- It meets the description
of what everyone says needs to be done
- It will save you money
- It will save your customer
money
- It will give you a marketing
advantage
- It reduces your administrative
burden and helps get you out of the MSDS
"business"
- It is accessible to all
manufacturers regardless of size
- It will provide timely
information for Hazmat Responders
- Expedited delivery can help
reduce injuries and save lives
- It will remove several
billions of dollars of overhead from the American economy
- It is free to all users with
Internet access
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LOWER
YOUR MSDS DISTRIBUTION COSTS
Variable VS.
Fixed Cost to Deliver an MSDS
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