Finally stopped outsourcing cuts after doing the math…
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Finally stopped outsourcing cuts after doing the math. Here's where we're at now
Had a job last spring where the outside cutting vendor said 4 days, ended up being 11. Customer was already asking questions by day 6 and I had nothing to tell them. That one hurt, not just the job but the margin on the next one too because I had to rush everything else to make up for it.
That wasn't the first time but it was the one that made me actually sit down and look at numbers. Rough math: what I was spending on outsourced cutting and welding over 12 months versus owning the capacity myself. Came out closer than I expected. Under two years on the payback if volume stayed anywhere near where it was. Ended up getting the MetalFab sometime after that. Been running it a few months now. Shop's not the same as it was. Last month we took on an order size I would've turned down before just because I couldn't guarantee the turnaround.
#industry
Had a job last spring where the outside cutting vendor said 4 days, ended up being 11. Customer was already asking questions by day 6 and I had nothing to tell them. That one hurt, not just the job but the margin on the next one too because I had to rush everything else to make up for it.
That wasn't the first time but it was the one that made me actually sit down and look at numbers. Rough math: what I was spending on outsourced cutting and welding over 12 months versus owning the capacity myself. Came out closer than I expected. Under two years on the payback if volume stayed anywhere near where it was. Ended up getting the MetalFab sometime after that. Been running it a few months now. Shop's not the same as it was. Last month we took on an order size I would've turned down before just because I couldn't guarantee the turnaround.
#industry
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