The need to stop 'stock-outs'

In the welding and fabrication industry the cost of downtime is considerable. Lost production, unfulfilled customer orders and staff overtime are just a few of the tangible costs while the resulting stress and pressure can be immeasurable. 

Therefore trying to avoid these situations is of the utmost importance to manufacturers. Obviously, there are always going to be times when the unexpected happens, but there are other times when careful planning and stock management could be the difference between a job fabricated on time or delivered late. 

Having the right selection and amount of welding consumables to hand is a necessity. Welding wires, electrodes and grinding discs are just some of the essential products that, if they run out, bring production to a halt. However, managing stock levels can be a time-consuming process in itself. Many companies find themselves with capital tied up in vast quantities of rarely used consumables because it’s hard to keep an effective inventory. Others may order on a reactive basis depending on usage levels, and find themselves trying to cope with a deluge of invoices, delivery notes and paperwork each week. 

One alternative solution is to use a single, specialist supplier for all consumables. Having a single point of contact simplifies the whole process, from ordering to invoicing, and can lower costs as a result. 

Foster Industrial has spent £15,000 developing its paperless Weldstock System, which analyses the most frequently used welding items and assesses requirements and usage levels. Delivery of whatever is needed is made in a single consignment and held at the customers’ premises, ensuring consistent stock levels are maintained. Everything is issued free, following which a monthly stocktake is carried out and transmitted directly to the office, where an order is placed to replenish the stock levels and a single invoice raised for those items used. 

Using a single supplier makes sense for lots of reasons. By having sight of the entire consumable spend we are able to offer advice and expertise across different products, providing the best solution for a range of shop floor applications. As well as cost savings brought about by economies of scale, the reduction in paperwork alone brings administration savings and can help to improve productivity too, by freeing up time that would otherwise be used finding suppliers, negotiating prices and placing purchase requisitions. Not to mention the reassurance that comes from having plenty of stock for every eventuality.”

Jason Chauhan is managing director at JC Metalworks, a precision sheet metal subcontractor manufacturing products from retail display units, custom enclosures and metalwork for OEMS and the HVAC industry. The firm uses the Weldstock System to cut down on administration levels and streamline the accounts process. Because of the fast-moving pace of the business, stocktakes are carried out on a weekly basis, with invoices generated monthly. 

Chauhan said: "Using Weldstock provides us with valuable information on usage of consumables and helps us to predict our costs more accurately. Because we’re using fewer suppliers we benefit from a discount from Foster Industrial and they have also been able to source specific, difficult-to-find items for us while maintaining the competitive price.”