Plastic machining companies sometimes have to work with relatively thin profit margins in order to deliver quality plastic products and parts to end users. However, there are ways you can increase those margins to make your operations more viable and shore up your bottom line.
In fact, the plastic fabrication vendors you choose to work with can have a marked impact on your profit margins. Making the right selection can help you cut out waste, improve quality, and offer even more value to customers. So what factors should you look for when choosing a vendor and purchasing plastic sheeting, film, and other materials that you need to deliver the necessary products and services in the most profitable way possible? Here are three of the most important factors that you need to be aware of.
Buy From an Experienced Vendor With an Established Quality Program
Going with an experienced vendor can help you eliminate mistakes and ensure that the buying process is as easy and efficient as possible. Companies that have years or even decades of experience have had the opportunity to refine processes over time, which leads to fewer mistakes throughout the process and a more efficient experience for customers.
It’s also essential to make sure that the vendor you choose has established quality programs. These are recognizable standards that can come from national organizations or groups related to specific industries. For plastic machining companies, these programs should include standards like ISO (International Organization for Standardization) 9001, the Society of Automotive Engineers’ AS9120 and AS9120A, and the U.S. Government’s ITAR (International Traffic in Arms Regulations) standards.
Basically, having these programs in place means that your company is more likely to receive parts and materials that are made to meet or exceed high industry standards. They ensure that your materials comply with specific regulations and provide standardized measurements of quality so you can know exactly what type of quality you’re investing in when you place an order.
Buy in Volume
In nearly any situation, buying parts and materials in bulk is more cost effective over the long term. It gives you more buying power and allows your supplier to process more items at one time to simplify the fulfillment and delivery process over the long run. When they can save time and resources on delivering your orders to you, they can pass some of those savings onto you, allowing you to spend less on each piece of material needed to complete your own processes.
In the case of plastic machining companies, there may occasionally be some products that you need to customize or order separately. However, many of the parts that you use on a regular basis can be ordered in higher volumes, since you’re likely to use many of those basic plastic sheets, tubes, and film over time. Opting for bulk orders can help you space out deliveries and reduce processing times overall as well.
Of course, this also means you need the space and capacity to store and process more items from a single order at once. But over time, the savings that you get when buying plastic components in bulk can really add up. So if you can manage to handle a bit of extra inventory on your end, you can potentially lower your expenses and increase efficiency. And of course, this means you can pay less for the materials you use for each of your own products or services. So your profit margins become higher.
Buying your plastic fabrication supplies from locally based vendors can also positively impact your profit margins in a couple of different ways. First, it can simplify the delivery process and limit the amount of time that it takes for your orders to get to your facility. This allows you to spend less time tracking orders and get the items you need in a timely manner. Overall, this makes your operations more efficient and decreases waste that can eat into your profit margins.
That more efficient ordering process can also help you when it comes to delivering products to customers. The less time that you have to wait to receive the parts you need, the faster you can complete projects and get them to end users. This can ultimately help you keep those customers happy and help you get more sales or accounts that keep those profits coming year after year. In some cases, you may even need the option to get specific supplies right away in order to get or keep a customer. So the ability to order items that arrive on the same day or at least within a few days can be very valuable.
If you’re looking for a plastic fabrication vendor that can help you increase profits for your business, Polymershapes can help. We offer a variety of high quality plastic products, including sheets, rods, tubes, film, and associated products. We also have more than 70 years of industry-leading heritage behind our team professionals. And we offer innovative solutions and customization options like cutting sheets to your specific size preferences and CNC routing. Additionally, our network of stocking facilities are conveniently located around the country, which means that all of our customers get access to an extensive inventory of items just around the corner. This also means that many of our customers can enjoy next day delivery. Visit our branch locator to find a local distributor in your area. Our local teams can work with you to discuss the best ways to increase your company’s profits.