How to Become a Better-Informed Mold Purchaser
How to Become a Better-Informed Mold Purchaser
Molds are often viewed as commodities, a familiar viewpoint in the injection molding sector where employees may lack a comprehensive understanding of the intricacies involved in manufacturing an injection mold. Drawing from my dual experience in both selling and purchasing molds, I aim to offer insights that could streamline the mold acquisition process.
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Six Questions to Consider
As a mold purchaser, you have the leverage to either set up a successful manufacturing operation or detract from the company's profitability. Simply evaluating molds based on price and delivery does not paint a full picture. Factors like part size, number of slide actions, steel type, and location of manufacture intricately affect mold pricing and performance.
Here are six essential questions every purchasing manager should address to enhance their buying acumen and add significant value to their company.
1. What is the function of an injection mold?
An injection mold acts as a cooling fixture that shapes heated plastic. Enhancing the efficiency of heat dissipation reduces cycle times. Your company's core product is press time, meaning quicker cycle times lead to cost savings. Collaborate with tool engineers to optimize melt delivery and cooling systems for reduced cycle time and scrap. Although initial costs might escalate, productivity and profitability gains can offset these expenses. Proactively seeking engineering insights from suppliers can justify the expenditure on high-quality molds.
2. How many suppliers do you utilize?
Consolidating suppliers enhances buying power. During my tenure at EG Industries, I optimized our supplier base from over 40 to 20. This strategy focused on selecting suppliers renowned for building specific mold types and based on their geographical location. This concentration allowed me to negotiate optimal cost, quality, and delivery balance, driving down the tooling budget by 11% during my first program.
3. Do you pay suppliers on time?
Paying suppliers promptly can shave off costs. Suppliers face risks when collecting payments and often resort to bank financing when delays occur. By negotiating early or prompt payment terms, you could achieve cost reductions of 2-3%.
4. Does your company need extended payment terms?
While extended payment terms can help cash flow and EBITDA, alternative solutions exist. Canadian mold shops utilize Export Development Canada for government insurance on receivables, ameliorating banking risks. Factoring receivables through a knowledgeable bank also emerges as a viable alternative, benefiting your company and suppliers alike.
5. Is your supplier healthy and stable?
A supplier going out of business mid-project can cause severe disruptions. Seeking financially stable suppliers who invest in their future through equipment upgrades and workforce development is crucial. This due diligence involves examining company culture, employee empowerment, and succession plans. Building relationships with the owners and senior leadership can provide deeper insights.
6. How do you know you chose the right supplier?
Evaluating a supplier extends beyond cost, quality, and delivery. Using a Pugh matrix enables a methodical approach to assess factors like experience, culture, financial health, and capability. This scientific evaluation aids in making objective, well-justified supplier selections.
Following these recommendations will likely help you reduce mold costs and fortify supplier relationships.
Builder Educating Buyer
Mold builders should actively educate their clients about their products. Many mold buyers, equipped with business acumen but lacking technical expertise, can benefit from collaborative learning. My background in the injection molding industry has instilled me with the importance of this educational approach. Growing up in my family’s mold shop and later managing several molding companies, I have firsthand experience.
Now serving as the senior manager of corporate technology and global tool sourcing at Ernie Green Industries, a tier-one automotive supplier and medical molder, I oversee all tool activities, including a specialized mold shop. Years as a buyer taught me the value of assisting customers in understanding mold technologies, financing options, and making informed tooling purchases.
By fostering a cooperative relationship, both buyers and builders can achieve aligned objectives, elevating successful partnerships. Molds may be commodity purchases, but a synergistic approach ensures mutual success.
Purchasing Basics: Injection Molding Machines
The selection process for a molding machine depends on matching it to the intended applications. Understanding the shortcomings of your current equipment and collecting precise tool and part data is essential. If the machine will handle multiple molds, consolidate the largest dimensions for overall calculations.
Considering factors like mold width, length, stack height, opening distance, ejector rod spacing, center ring diameter, part dimensions, wall thickness, and material viscosity helps in choosing the right molding machine. Accounting for these specifications ensures that the machine fits your mold and meets your operational requirements.
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Lastly, remember to thoroughly compare vendor quotes, check machine performance, evaluate manuals, and review supplier references. Factoring in shipping, setup costs, and additional certifications ensures a comprehensive evaluation. With well-communicated objectives, you will secure comparable quotations and identify a new reliable supplier.
Our thanks to Husky, Krauss-Maffei, Niigata, and Wabash for their contributions that enriched this article.
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