6 Ways A Metal Manufacturer Helps You Reduce Costs: Part 2 - Miller Fabrication Solutions
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6 Ways A Metal Manufacturer Helps You Reduce Costs: Part 2

April 8, 2016

Staying true to your budget goals can be challenging without the right metal manufacturing processes in place. You need a way to minimize costs without sacrificing the quality and consistency of your parts. Fortunately, the right supplier is budget-conscious, continually optimizing its processes to deliver a better price.

In installment two of this three-part blog series, learn how your metal manufacturer helps you reduce costs through consultations and unique programs, logistical strategies, and manufacturing expertise.

2. Consultations And Supplier Programs Reduce Costs

Your metal manufacturing supplier should offer value beyond basic fabrication, welding, machining, coating and assembly services. While it’s helpful to work with a supplier that executes these processes well, you shouldn’t neglect your budget goals.

Manufacturers with a focus on boosting your profitability provide consultations and unique programs designed to cut costs. As you’re searching for a supplier, give preference to companies that:

  • Recommend ways to improve the manufacturability of a specific product
  • Provide consultations that teach you how to streamline metal manufacturing services
  • Offer stocking programs for critical components, giving you flexibility in changing market conditions

Consider this real-world example: A market-leading OEM was struggling for growth and needed to outsource items it had been producing internally to free up resources. The OEM initially turned to its supplier for machining services only, and the contract manufacturer turned production around by improving the manufacturing process and delivering cost savings.

The OEM soon began to rely on its supplier for complete manufacturing, from raw material through metal fabrication, industrial welding and machining. By grouping these manufacturing steps together, the OEM could keep a better pulse on operations. In addition to production, the supplier also took responsibility for aftermarket support.

3. Logistical Strategies Lower Non-Manufacturing Costs

Supplier recommendations are not strictly limited to metal manufacturing processes. For example, your supplier may help you eliminate unnecessary trucks from your shipping fleet. Using advanced shipping container design, your manufacturer is able to use your original containers with greater efficiency, reducing your shipping costs.

Your metal manufacturer may also be willing to hold extra inventory for your OEM, reducing turnaround times. This allows you to drastically lower your inventory investment and increase cash flow. Inventory positions improve production efficiencies as an added cost-control benefit.

4. Manufacturers Offer Expertise In Lowering Part Costs

Metal manufacturing suppliers have experience and expertise in lowering the cost of custom metal fabrications. While you’re knowledgeable in many different areas of your business, production efficiency is your supplier’s specialty.

Experts at your supplier’s company can assess processes for improvement and pinpoint solutions, particularly in areas like automation. Your contract manufacturer is focused on current trends and new market developments, applying them to their business model to cut your OEM costs.

Once you and your metal manufacturer develop a strategy for reducing costs, you benefit from better cash flow and the ability to fund other areas of your business. No matter how you choose to apply your savings, you’re able to leverage an improved budget to gain a competitive advantage over other OEMs that are bogged down with high metal manufacturing costs.

Don’t miss out on the rest of this series. Learn more about how your metal manufacturer should help you reduce manufacturing costs.