During the economic recession, there was large-scale consolidation and subsequent closings of many smaller to mid-size metal stamping companies. Currently, the economy is crawling back and certain industries, most notably the automotive industry, are experiencing growth peak profits. Demand for metal stampings, especially larger tonnage pieces, are at an all-time high. There is currently limited capacity among stamping companies, globally. With this in mind, procurement professionals are left with major challenges to locate and source a capable metal stamping supply partners.
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Before deciding on the best supply partner for metal stamping services, one must be conscious of all facets of the part and assembly, and look at each option from multiple angles. Below are a few considerations for selecting the right metal stamping supply partner.
Sourcing the right metal stamping supply partner today is more challenging than ever due to both internal and external headwinds. Too often, supply partners, across commodities, are chosen based on cost alone as a result of corporate procurement team cost reduction initiatives that focus on and reward cost reductions above all other KPIs.
While cost remains critical in any sourcing activity, we would argue that overall capability, experience, quality, and location, are equally as important and should be weighted as part of the decision criteria. Before moving forward with a metal stamping supply partner, a procurement professional must have a stringent vetting process that ensures the following considerations are met and the results meet company goals. These considerations for choosing the right metal stamping partner include: capabilities, experience, price, and location.
The metal stamping industry has changed tremendously in the last decade. Metal stamping capabilities vary from company to company. Some focus on larger production runs at a lower cost, while others focus on low volume with greater options for customization. Also, a metal stamping company is no longer only a metal stamping company. Most do some form of value-add services such as assembly, welding, post-machining or finishing, heat treating, etc.
Today, it is extremely rare for a supply partner to only provide metal stamping services. The game has certainly changed and that is why it is so very critical for a procurement professional to find the right metal stamping partner. Leading procurement professionals today go into a sourcing decision not with a supplier mindset, but a supply partner mentality.
When considering the capabilities of a potential metal stamping supply partner, a procurement professional must analyze and evaluate every offering that partner provides or has the capacity to provide. One must ask, “Is this potential supply partner capable to meet all my business needs, and then some, without the risk of problems during production?” Below are a few common, yet extremely critical questions a procurement professional should ask in regards to the capabilities of any metal stamping company that is being considered for a program:
What materials does the potential supply partner work with?
There are many different materials that can be stamped, most notably steel and aluminum variants. Certain supply partners specialize in the different material types so it is important to know not just what your potential supply base is capable of, but also what it is good at and specializes in.
What thickness can the potential supply partner stamp?
Almost as important as the material specialty capability is the capability for the supply partner to be able to work with the size and thickness you prefer. Not everyone can do thin-wall stampings. There are a handful of good supply partners in the US that are capable of this. When you throw in the ability to do a thin-wall aluminum stamping, that number decreases even more. So, it is absolutely critical to know exactly how thin and how thick the potential supply partner can go, prior to sourcing them the stamping business.
What production services are offered by the potential supply partner?
Procurement professionals must always inquire on the specific production services and/or secondary operations that are offered by the potential supply partner. Some programs will require simple stamped parts and others full, finished and tested assemblies. Do yourself a favor and ask these important questions: Can this particular supply partner finish machine the part, if required? Can they clean the part to your company cleanliness spec? Can they assemble the plugs and fasteners required to make it an assembled finished good? Can they do leak testing or conduct additional testing that is required by your company before final shipping? Knowing all of this information ahead of time will save you the heartache down the road.
What design capability does the potential supply partner have?
It’s one thing to take a prototype through production, but what if you require design services? Not all metal stamping companies offer that. Ask each company you are considering whether they can work based on drawing (digital or printed), whether they can translate the drawings to shop drawings, and whether they are capable of starting from scratch without the help of an initial design provided by you. Getting these questions answered upfront will allow you to be comfortable in your supply partner throughout the entire process.
Manufacturing, and especially automotive manufacturing, is an industry where experience matters at both the individual level and the company level. A procurement professional must be assured that the potential metal stamping supply partner has sufficient experience in order to avoid future costly mistakes.
Ask the companies you are considering about their knowledge as it relates to industry codes and regulations. For automotive companies, being knowledgeable, experienced and certified in various ISO/TS standards is recommended, and in many cases required, for certain OEMs and Tier Is. Be sure to have potential supply partners describe how operations have continuously improved over the years to be as efficient and safe as possible. Ask about similar projects they have completed. Further, don’t be shy about seeking references from past customers. A good metal stamping company will have plenty that are willing to speak on their behalf.
As a rule of thumb, we always like to get at least 3 quotes from highly qualified potential supply partners. Once attained, compare costs across the board as it relates to the program. Attaining an apples-to-apples comparison amongst metal stamping companies is not always easy. One company might use a higher quality metal or more precise cutting tools, meaning you can expect fewer costly mistakes in the long term. Some are priced higher because they are smaller shops that offer more customized services. While bulk can be cheaper, it might not be right for your specific project.
Make sure that the RFQ you send to each supplier details the specifics of exactly what you are looking for. The vetting and Supplier Capabilities Assessments, that you should be sending to each potential supply partner along with the RFQ, should also downselect many of the unknowns and discrepancies. Location can also negate the cost savings of a less expensive quote, which leads to the next consideration.
Supply partner plant location is extremely relevant, especially in the manufacturing industry today. Whereas, centrally located industrial hubs would have sufficed in previous decades, fuel costs, proximity to customers and control over the product itself are increasingly important when choosing the right supply partner. This movement has resulted in manufacturing “clusters” found throughout the country. Whether you prefer a metal stamping partner that is near your own facility or close to your customers, be sure to crunch the numbers and make sure the company’s location makes the most business sense for you.
For example, a Korean supply partner may offer the best pricing versus a supply partner 50 miles down the road from your manufacturing facility. However, it is in the procurement professional’s best interest to ensure all the costs of logistics are considered before choosing a supplier. After accounting for the shipping, lead times, customs, etc., the supply partner right down the road from you may have the edge. Location is important not only for costs, but also critical in the instance there are ever issues with production. A closer facility could have someone at your facility or vice versa, within a day or so.
There are many items a sourcing professional should be cognizant of and consider before choosing a metal stamping supply partner. There must be full awareness on the bigger picture and not just the short-term cost savings or avoidances. Too often supply partners are chosen for the wrong reasons or for short-term gains. Understanding a potential metal stamping supply partner’s capabilities, experience, pricing and location will put you and your company in the best position to win for the long term.
Keeping these considerations in mind will ensure a procurement professional chooses the right metal stamping supply partner, every time.
-Tony
Choosing the right partner for your metal project can be a perplexing process—unless you know the right questions to ask.
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Throughout the metal manufacturing process you’ll come up against many choices, but the most important is choosing a reliable metal parts manufacturer. Deciding between prospective fabricators can feel overwhelming at times because you want to make the right choice the first time to avoid costly delays—and get to work developing a strong relationship that allows you to succeed together.
Metal fabrication is essential in industries from construction and equipment manufacturing to agriculture and aerospace. The best manufacturing partner will offer not just the technical and engineering capabilities but also cost-effectiveness, high-quality production, professional systems, streamlined logistics, and excellent communication.
We’ve pulled together a list of 10 critical questions to ask as you’re considering where to manufacture your metal parts.
Table of Contents
It’s an exciting time to be in the business of manufacturing metals. We’ve seen great strides in automation and computer-aided manufacturing, including innovations like CNC machining. CNC (computer numerical control) is the automation of machine instruments through the use of computers which have been programmed to execute any number of commands. Integrating this type of manufacturing increases productivity and efficiency over the long run.
You Ask: What manufacturing technology does your company have access to?
The manufacturing industry is experiencing a seismic shift thanks to artificial-intelligence-powered manufacturing systems. Part of this shift involves making metal manufacturing more sustainable, which reduces environmental impact. New processing methods eliminate the need for toxic solvents and materials, and consume far less energy than typical processing methods—along with improving efficiency.
You Ask: What percentage of the product will be made with sustainable materials?
A qualified metal fabricator will have plenty of experience in making the exact type of products you need. Look for a fabricator who has years—or, better, decades—of experience in your industry and an excellent track record with customers.
You Ask: Which industries and clients have you worked with in the past? What examples or references can you provide?
Each metal part and product requires a different fabrication approach, process, and specialized equipment. For instance, sheet metal fabrication requires lathe, grinding, and drilling machines, while metal extrusions call for extruders. In metal stamping, which calls for raised (or sometimes flat) shapes in metal, a turret-like punching press is required.
You Ask: How will your specialized metal fabrication equipment improve my final product?
One of the biggest decisions to make in metal manufacturing projects is whether to go with off-the-shelf components or custom metal fabrication solutions. Custom fabrication services allow you to go beyond the store-bought to create a customized, high-quality fit for your application, with optimized designs and tailor-made solutions.
You Ask: What is the timeline for a custom metal fabricated product? What processes do you use to create custom metal parts?
You’re dedicated to producing top-quality products, and that means you’ll need to find a manufacturer with a reputation for quality standards to match your own. The first thing to look for are certifications that demonstrate quality processes and top-quality criteria—for instance, ISO certification, which indicates an internationally recognized seal of approval for the company’s quality standards processes.
You Ask: How do you measure and track quality performance?
Does the manufacturer in question have the capability to handle your project size and complexity within the time frame you have designated? Most projects are time-sensitive, and the best partner will be committed to manufacturing high-quality, cost-effective, time-sensitive solutions.
Question to ask your manufacturer: What’s the turnaround time for manufacturing projects similar in scope?
Often, metal products producers will specialize in a particular type of fabrication. Look for companies with in-house expertise, engineers, and designers equipped to handle your specific metal manufacturing needs.
You Ask: Take us through the production process—which parts of the process can be completed on site and which will need to be outsourced?
As you’re likely discovering, the research process for finding the best metal parts manufacturer can be quite time consuming. What other services can the potential manufacturing partner provide so you can use them for more than one project, rather than starting from scratch with researching various new vendors?
You Ask: What are your metal manufacturing specialties outside the scope of this particular project?
Even the highest-tech equipment can’t make up for disappointing customer service. The best metal parts manufacturing partners will have well-trained, experienced engineers and project managers ready to answer your questions and guide you through the process.
You Ask: Will I have a dedicated point of contact to keep me updated on project timelines and other milestones on my project?
As your metal parts experts, The Federal Group specializes in metal fabrication. The best products start with the best parts—and the best parts start with engineers at the top of their fields. Our expert team is knowledgeable about the latest materials, manufacturing capabilities, and processes. If you’re looking for a reliable metal parts manufacturer, we just might be a perfect fit.
Contact us to discuss your requirements of Standard Fasteners Manufacturer. Our experienced sales team can help you identify the options that best suit your needs.