Jun 15, 2016
Sourcing good metal fabrication and products and keeping an eye on the bottom line can seem mutually exclusive. Many purchasers spend a great deal of time on negotiating part prices, cutting corners on shipping, and shopping around between vendors.
However, a more sustainable strategy like cost avoidance — looking at long-term benefits rather than immediate price drops — can provide an excellent long-term solution for your business needs. There is a wide variety of ways to cultivate a “cost avoidant” state of business, such as:
● Part Reengineering
Part of building a good product from the ground up is bringing in diverse perspectives. Invest in alternative design concepts: your internal design or sales engineer could hold the key to reducing assembly or material costs if they’re given a chance to contribute.
● Alternative Production
Setup costs can cause financial officers to shy away from new fabrication processes or equipment, but the overall reduction in cost per unit can provide a major offset.
● Fixed Repayment for Upgrades
Also known as amortization, setting a fixed payment schedule for new tooling costs can help soften the impact of a new project. And while your organization is paying down the fee, it gains the stabilizing income benefit of reliable, high-volume production.
After 40 years in the business, Dixie-Southern is proud to be considered a leader in custom steel fabrication. If you need custom steel fabricated products made exactly to your specifications, you may now upload drawings and specs directly on our site with our Easy Quote Form!
We fabricate ASME pressure vessels, steel tanks, large diameter pipe, welded ductwork, autoclaves, steel filters, steel stacks, dust collectors, HRSG exhaust stacks, spool pieces, chutes, bins, steel silos, launders, hoppers and towers. Visit our homepage or contact us today for more information!
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