Thermal Spray Consumables Consignments

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In a previous article, we discussed reducing the cost of thermal spray consumables by placing blanket orders on repeat use items such as certain thermal spray powders, thermal spray gun nozzles, etc. This is one method by which you can try to keep a lid on recurring costs associated with purchase of thermal spray powders and the like. There is another technique used by some companies in their attempt to increase the bottom line of their thermal spray business. We will discuss that in this article.

Again, the bulk of the burden of controlling costs here is going to fall on the purchasing function of your thermal spray operations. Lets take thermal spray powders and thermal spray wires for example. You can negotiate with your thermal spray powder supplier to put key thermal spray powders on consignment at your thermal spray shop and give him a report at the end of every month regarding usage; you then pay only for what is used. You get the benefit of controlling and optimizing cash flow and he gets the benefit of locking in your business for term of future that has been agreed upon. The same method can be used for grit blasting grit, thermal spray gun nozzles and the like. The key though is you must make sure your accounts payables are in line and payments made on time. Because once your supplier gets delayed payments, he is more than unlikely to entertain consigned inventories and you would have killed the golden goose. From an accounting stand-point, consigned inventories do not appear as cash tied up in inventory and so your books look good also. Additionally, thermal spray shops that deal with aerospace and military contracts have to do a powder release laboratory sample for every new lot of thermal spray powder or thermal spray wire; ( in all actuality EVERY thermal spray shop should do this regardless of end customer application aerospace or otherwise ). When you place a large consignment order, then chances are there is one big lot tied to one lot number rather than 20 different lot numbers with small quantities in each; hence you also save the costs of the additional powder release spray time and associated metallurgical testing costs.

In summary, consigned inventories of thermal spray consumables such as thermal spray powders, thermal spray wires, grit blasting grits, thermal spray nozzles, masking tapes and masking compounds go a long way in improving the bottom line of your thermal spray business and hence make every effort towards implementing them in your own company.