Optimizing price and delivery in high-volume, low-mix environments

High-volume, low-mix production environments count on predictability to keep their long-running jobs profitable and on schedule. When it comes to cutting tools for long-running jobs, there are three critical factors:

1. Repeatable performance: Tools must perform exactly the same way every time they are ordered. Unexpected changes or variability create short-term chaos in production, with long-term impact on supplier trust. MITGI utilizes in-house processes, documentation, and programming to ensure that the tools are made the same way every time they are ordered.
2. Tool availability: Running out of tools in high-production environments can mean that lines are shut down, which is expensive and can cause downstream production issues. MITGI teams work to establish short lead times with dependable delivery dates so that you can count on tools to arrive as expected. MITGI also offers stocking programs to ensure the tools you’ve ordered are on the shelf and available to ship the same day.
3. Stable pricing: When product life cycles are long, it can be tough to maintain profitability and avoid fluctuations due to market changes or supply chain constraints. Tools used in stable and high-volume production are good candidates for blanket orders. MITGI blanket orders lock in the per tool price for the duration of the blanket, helping to provide predictable pricing for up to a year.

There are many ways to optimize price and tool availability, but a good place to start is a blanket order. Here’s how blankets work at MITGI:

• Blankets can be set up with pre-determined ship dates (ship schedule), or tools can be taken on demand.
• Blanket orders can be set up for any quantity of tools. Many companies opt to place blanket orders for up to 12 months of planned production – this is a good option if the line is stable and no continuous improvement projects are expected for those tools. Some companies will opt to place blanket orders for 2-3 months of usage at a time; this helps to gain some pricing and inventory advantages while minimizing risk.
• When blanket orders are placed, you’re committing to take all of the inventory. We ask that you take them within 12 months.

Ready to get started? Contact us to today discuss blanket options for tools used for high-volume projects.