For organizations that rely on multiple manufacturing processes to construct a finished product or product line, purchasing and processing metal is no easy feat. Not only do you have to navigate the volatile and complex metal supply chain, but you have to make sure the metal you purchase is processed in a way that effectively meets your manufacturing needs.
Just in time (JIT) manufacturing is an extremely effective way to save costs and efficiently manage your cash flow. After all, if your metal inventory arrives on an as-needed basis, you’re not paying for it to sit idle on your manufacturing floor—or dealing with the financial costs of under- or over-ordering.
While every manufacturer would like to optimize their metal inventory, getting the ball rolling can be a challenge.With the right metals Service Center, you should not only gain access to the products you need. You should also have a collaborative partner able to bridge your knowledge gaps and identify the hidden costs and hurdles of your metal purchasing patterns.
Purchasing and maintaining the right metals inventory can ensure consistent product availability and cash flow—letting you smooth operations, maximize efficiency and bolster productivity. But to effectively optimize your inventory, you have to see it as more than the materials in your warehouse. Cost, quality, supply chain risks and logistics are all factors that can significantly impact your business operations and bottom line.
Purchasing and maintaining the right metals inventory can ensure consistent product availability and cash flow—letting you smooth operations, maximize efficiency and bolster productivity. But to effectively optimize your inventory, you have to see it as more than the materials in your warehouse. Cost, quality, supply chain risks and logistics are all factors that can significantly impact your business operations and bottom line.
When a supplier offered Company X a lower price on its preferred metal, Company X jumped at the cost-saving opportunity. Pretty soon it learned, however, that “price savings” and “cost savings” aren’t synonymous.
When it comes to purchasing metal, cost efficiency is a priority. What many manufacturers fail to realize, however, is that the lowest cost and the lowest price aren’t one and the same.
While a global pandemic like COVID-19 is likely (and hopefully) a once-in-a-lifetime event, this probably isn’t the last supply chain disruption your business will face. Anything from a natural disaster to a trade war can prevent you from accessing the metal you need, when you need it. So the question now becomes: what risk mitigation lessons can you glean from this heightened experience to make your business stronger in the future?
If you’re a manufacturer whose business revolves around the purchase and use of specialty metals, you’re likely well aware of how challenging it is to consistently source these materials. Anything from a global pandemic, like COVID-19, to the rewriting of a trade agreement, like NAFTA, can cause your go-to sources to dry up—and make it incredibly difficult to find a consistent supply of metal at a competitive price.