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How to reduce the cost of material in precision machining company

In the machinery,hardware manufacturing and other industries, material costs account for a large part,lead to
lower corporate profits.Therefore, reducing material costs has become a concern for every precision machining company.

Precision machined parts

How to reduce the cost of material?

1.Design phase
In the design process,using general materials to design general parts,to help increase the use of inventory and
turnover.At the same time,the quality of product can be guaranteed,which effectively reduces the cost.

2.Planning phase
Through reasonable inventory to meet production needs, to ensure smooth production. Procurement plans are based on the production plan, so the rationality of the production plan is crucial for the procurement plan.

3.Use phase
Controlling costs at the stage of use mainly means reducing waste.In actual production, there will be a difference
between the materials used in the workshop and the actual use.
Therefore, it is necessary to establish the process and system of workshop materials; secondly, it is necessary to
establish an exception handling mechanism; and finally, the ERP management tool is needed to control the actual
production.

4. Custody phase
Consider the control of inventory sluggish materials and increase the turnover rate. Inventory due to order cancellation is generally returned to the supplier or transferred to other available factories, which can be
disposed of directly.

precision machining company

Susan Shi is working in precision machining field more than 20 years.