Easy right? As vendors and customers work towards an open and rewarding relationship the customer should be forthcoming to present like projects together as the customer and vendor benefit the most from that, here's why:
BETTER PLANNING YIELDS BETTER RESULTS: When the customer demonstrates a handle on their products it tells the vendors, "I got this". It's a good place to start.
MIX AND MATCH QUANTITIES: In the best interest of provided competitive pricing, customers can't expect you to produce 25 pc. for the same price as 250 pc. but you could if you can combine same materials, setup and process, along with other like services such as plating or heat treating. In the end, the vendor is able to discount the lower quantity production because it's really not low production, it paired with another like part. It turns into an win/win for everyone.
FORCASTING AND COMITTING: Forecast are great, it allows the supplier to plan and group multiple releases into one production run. This is a great option but this only works if customers are willing to actually commit to buy the product. If the customer doesn't believe in their own product, how can the ask a vendor to build and hold inventory, it's a non-starter and leads nowhere. In addition, the vendor can provide a discount but still has to outlay capital in materials, labor, and process so the customer can expect a discount but also needs to understand that a prolonged delivery schedule may need to be accounted for. The idea is for the two opposing forces to work together for the greater benefit of the two. What you don't want is one to win and the other to loose.
GOOD COMMUNICATIONS, vendors need to ask " are there any other projects like this one that we could piggy back the production with ? " Don't be afraid to share your insight into what will lead towards cost reduction the customer will thank you and want to do more with with you. It's what we promote at K Tooling and share with our customers.
Now let's quickly recap: If vendors and customer have a policy of open communication, this is an easy topic to discuss an put it on the table. Customer should be prepared to group like parts together, sweeting the pop for the vendor. The vendor should be quoting the parts accordingly and sharing the ins and outs so the customer has an understanding of the process. Don't try to pull the wool over the customer's eyes in won't work.
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