Finding the right precision machining company to manufacture your finished products can be a daunting task. Therefore, when evaluating manufacturers for precision Custom Machined Products , CNC machining, screw machining, tooling, or any additional type of manufacturing, it is imperative to give weight to multiple criteria. With that in mind, there are a few dos and don'ts to live by, or at least to make an honest effort to consider when making a final decision.
Many companies give precedence to price, which is reasonable to a point. Price centricity is focused on the existing budget and how much cash you can outlay towards the transaction. The problem is that this method is based on one condition of sale, and not the grand scheme of the project. For example, by relying on price alone, many manufacturers have resorted to offshoring their production to countries.
The short answer why companies do so is because of the very low direct labor costs that keep total expenses down. Many companies find out later that moving overseas is far more costly than the original ticket price. Fellows Inc. is one great example of losing big by offshoring.
If you practice a JIT or demand pull system, or just want control of your product, then keeping to domestic suppliers is highly suggested. When you think about the price, think beyond the invoice; think about potential losses and the opportunity cost of not having the parts produced locally or at the quality standards that you need. Moreover, think about the under cutters that will try to gain your business.
Under cutters are generally new companies that are trying to make a name in the industry. They often resort to entrance based pricing strategy to both spark long term relationships with new customers and take clients away from other suppliers.
Oftentimes these companies respond to quote requests with dollar values that are too good to be true, sometimes even below their own costs which is just bad for business. This results in corner cutting during the manufacturing process, less than desirable customer service, and low quality machined parts.
Not that a new company cannot offer you great service or a low price, but you should evaluate their standing in the industry and the quality measures that they have in place. For Medical Machined Parts get in touch with Kaddis at affordable pricing.
