28 Feb Custom Fabricator | MetalWorking Group
How many times have you ended a month with the hopes of great results, only to find that your supply budget had a bit of stress on it and knocked the margin down? It is unlikely to have a month where everything just seems to go right. However, there are proven techniques that will control the supply budget, and lower the percentage of supplies used versus sales.
The Metalworking Group entered into a supply agreement with Airgas, one of our valued partners. Airgas is known for their work with industrial gases and welding supplies for the custom metal fabrication industry. They also manage and control a wide range of supplies including expensive cutting inserts used in CNC Machining, consumable weld supplies, and all sorts of grinding, safety, and general shop supplies.
A contract manufacturer of sheet metal fabrications requires a vast amount of different supplies. Without stringent oversight, the cost of supplies gets out of control and contributes to wasteful spending. This is where the automated tool crib comes into play. The Airgas unit is a bar code system that places each specific item into the automated crib. The dispensing mechanism is computer controlled and is programmed to allow authorized associates to withdraw supplies under their names after their bar code is scanned.
The system is effective for a number of reasons. First, it requires all the welding, sheet metal, and CNC machining supplies to be categorized and inventoried. Similar types of items were consolidated and reduced the overall number of items needed. Secondly, there is specific control over the supply items so they are not misplaced. In addition, Airgas is able to pull their purchasing power over a wider array of products to yield favorable quantity pricing.
Below is a picture of the unit at MWG: