Complete Guide To Corporate Finance

The Business Finance Guide

It’s probably safe to say that anyone out to procure a shipment of pressed metal components for any purpose whatsoever would prefer to pay the lowest price possible. Value for money is of course what matters over and above everything else, but if there is a way of cutting costs without having to compromise quality, it represents an attractive prospect to say the least.

This is particularly true in instances where businesses require components or parts in large numbers or on an on-going basis. It’s never nice to find yourself suspecting that you are overpaying or have overpaid for some time, but without a thoughtful and proactive approach to the procurement process, it’s a likely eventuality to say the least.

So for those who would prefer not to compromise on quality but to make real savings at the same time, here’s a quick rundown of a few universal tips for helping ensure costs are kept to absolute minimums:

1 – Seek Design Assistance

First of all, one of the very best ways of ensuring that the components you require can be produced for the lowest possible costs is to involve the engineering company in the design process. The reason being that with such a wealth of experience and specialist knowledge, they will be able to help and advise on every aspect of the design process ensuring that quality and value for money remain top priorities. To work with an engineering company that offers this kind of fully comprehensive service package is to benefit from a range of valuable advantages.

2 – Watch Market Metal Values

Something else to be aware of is the way in which the market value of each and every metal across the board is in a state of constant flux. Which in turn means that while certain metals that appeared to be extraordinarily affordable one day can suddenly become quite expensive, the same is also true in reverse. This is something that should be considered in any instances where orders are to be filled at a later date, or bulk orders placed. As the market value of metals is constantly changing, it is something to keep an eye on.

3 – Secondary Processing Services

It may be necessary to request secondary processing services to go along with the primary design and manufacture of the components or products. Such services include things like additional fabrication, treating, coating, finishing, packaging and shipping – all of which will naturally incur costs. There are many steel, aluminium and brass pressing companies in business these days that are committed to offering the total package from start to finish, including each and every additional processing service required. And as is the case in most instances in business, arranging for everything to be done under one roof by the same brand can be enormously beneficial in terms of convenience, efficiency and cost-effectiveness.

4 – Avoid Middlemen

One of the most important golden rules to follow when it comes to keeping costs to absolute minimums is that of avoiding working with middlemen and resellers. The reason being that such individuals and businesses do not work for free, but rather add premiums onto the standard prices of the products ordered the so as to pay their own way. To involve middlemen is to slow the process down, increase costs and add unnecessary complications – all of which being best avoided.

5 – Think Long-Term

In the vast majority of industry areas, ordering in bulk or committing to long-term orders is one of the most effective ways of securing the best possible prices. Sourcing pressed metal components for any given purpose is no exception to the rule either – the more you order, the lower the prices will be.  Which is precisely why it is a good idea to think as far ahead as possible in order to assess exactly what you are definitely going to need going forward.  Rather than simply ordering a few components at a time for their standard purchase price, it makes far more sense to order in bulk and benefit from huge savings in doing so.

6 – Automation

Last but not least, it is also advisable to show a preference to the engineering companies and service providers that rely on computerised and/or robotic manufacturing processes. The reason being that while those still following the traditional manual manufacturing processes can produce fantastic results, they cannot do so with nearly the kind of efficiency and cost-effectiveness of those who automate their processes. And when the manufacturing processes are optimised and improved, the ultimate result is lower prices for the end customer.

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