We were as alarmed at the recent headlines as any metal fabrication company in Pennsylvania.
Many different types of sheet metal and other materials were either delayed, unavailable or priced at levels no one had ever seen. Thankfully, nearly all of the companies who use our metal fab shop services were in the clear. How?
Despite the many supply chain disruptions and the media frenzy covering them, most of our customers were unaffected thanks to our blanket order production runs. In fact, they not only met their metal parts needs without interruption but even saved money at the same time. With blanket order production runs, the metal fab shop locks in discounted pricing based on a large quantity order but instead of producing all of the parts at once, the parts are produced as several smaller orders, typically on a monthly schedule. This way, we can source all of the metal material at the outset, earn a volume discount, and include the savings in our customer’s contract.
By sourcing our steel, iron, copper, carbon steel, stainless steel, aluminum, and other materials up front and storing them in our climate-controlled warehouse, we protect our customers from any material shortages and price shocks. This JIT system also cuts down on administrative tasks like order processing, purchasing, and receiving and inspecting material, and enables us to adjust our scheduling and staffing well in advance. This boosts overall efficiency, which helps keep costs low and quality high.
For one example, we manufacture a number of metal parts for a customer who supplies sub-assemblies to the major automotive companies. Without these laser cut parts, their plant would shut down and that stoppage would ripple through the whole auto industry. But since we use a blanket order contract, we delivered month after month without any delays or price increases.
We offer this service with laser cutting, metal forming, fabricating, machining, welding, powder coating, assembly, and other metalworking services. It’s a very effective way to lock in both supply and cost certainty, and get some peace of mind regardless of what the supply chain headlines say.
Contact us to learn more about setting up a blanket order production run contract.