How can the company effectively reduce the cost of mold procurement?

How can the company effectively reduce the cost of mold procurement?

Reducing the cost of mold procurement is essential for companies to stay competitive and improve their profitability. Here are some effective strategies to achieve cost savings in mold procurement:

  1. Multiple Quotes: Obtain quotes from multiple mold manufacturers. This allows you to compare prices and negotiate better deals based on market rates and the competitiveness of the suppliers.
  2. Long-Term Partnership: Build long-term partnerships with reliable mold manufacturers. Establishing a strong relationship can lead to volume discounts and preferential treatment, resulting in cost savings.
  3. Design Optimization: Work closely with mold designers to optimize the mold design. A well-optimized design can reduce material wastage, machining time, and overall production costs.
  4. Material Selection: Choose cost-effective mold materials without compromising on quality. Sometimes, alternative materials can offer cost savings without compromising performance.
  5. In-House Production: If feasible, consider in-house mold production. Having an in-house tooling department can save costs associated with outsourcing and lead to faster production times.
  6. Standardization: Standardize mold components where possible. Using standard components reduces manufacturing complexity and may lead to cost savings on components.
  7. Utilize Existing Molds: Reuse existing molds for similar parts or products whenever possible. This eliminates the need for new tooling and reduces costs significantly.
  8. Early Supplier Involvement: Involve mold suppliers early in the design process. Their expertise can help identify potential cost-saving opportunities and optimize the mold production.
  9. Lean Manufacturing: Implement lean manufacturing principles to minimize waste, optimize processes, and improve overall efficiency.
  10. Quality Assurance: Invest in quality assurance and testing to identify and address potential defects early in the process. Avoiding costly rework and post-production fixes can lead to significant cost savings.
  11. Continuous Improvement: Encourage a culture of continuous improvement to identify and implement cost-saving opportunities in the mold procurement process.
  12. Negotiation: Negotiate with mold manufacturers to achieve the best possible terms, including payment schedules, delivery timelines, and pricing.
  13. Value Engineering: Explore value engineering options to achieve the same functionality with reduced costs. This involves reevaluating design and manufacturing processes to optimize cost without sacrificing quality.

By implementing these strategies, companies can effectively reduce the cost of mold procurement while maintaining or even improving the quality of the molds produced. Consistent cost-saving measures can enhance the company’s competitive advantage and financial performance in the long run.

For cost control, first of all, it is necessary to understand the expected order quantity of new products from the personnel of the Marketing Department? Is it huge?

During the development and review stages of new products, if the estimated order quantity does not reach more than 500,000, it is recommended not to perform mold hardening but to use soft molds directly. This soft mold is often called a test mold and its cost is relatively low.

A soft mold is an unhardened mold made of soft material that can flexibly adapt to different product shapes and sizes. Compared with hard molds, the production process of soft molds is simpler and faster, so it can save a lot of time and cost. In addition, soft molds also have better plasticity and reusability, and can be modified and adjusted as many times as needed.

When the market response is poor, using soft molds can effectively avoid unnecessary mold opening costs. Since the cost of soft molds is lower, if the order quantity does not meet expectations, companies can choose not to perform hardening treatment and continue to use soft molds for production. This avoids costly mold hardening costs due to insufficient order quantities.

In addition, soft molds can also be used for preliminary testing and verification of products. By using soft molds for small-scale production, companies can better understand product quality and market feedback. If it is discovered that the product has some problems or does not meet market demand, the company can make timely adjustments and improvements without incurring additional mold opening costs.

In short, during the development and review stages of new products, if the estimated order quantity does not reach more than 500,000, it is recommended to use soft molds for production. Soft molds have lower costs and greater flexibility, can save unnecessary mold opening costs, and can be used for preliminary testing and verification of products. This can reduce the risk and cost of the enterprise and improve the competitiveness of the product.

If the sales market of the later products is opened and the demand for the products increases sharply, the second set of hard mold, namely the duplicate mold, can be opened at any time during the production of the first set of mold, which will not affect the production and delivery progress of the products in any way. Another obvious advantage is that the mold factory will summarize the experience in design and production during the opening of the first set of mold, When these experiences are applied to the opening of the second set of molds, there will be a lot of room for improvement. Even if you don’t ask for this, the mold factory will undoubtedly take the initiative to do it, because this will reduce their detours and make the copied mold more perfect and perfect.

On the other hand, if the expected order quantity of the product is unknown and the hard mold is started from the beginning of the product project, it will only increase the mold procurement cost by at least 1/3 needlessly; In addition, the mold cost should also be taken into account in the engineering design stage. For example, steel with S136 as the mold core and fine nozzle mold embryo as the glue feeding method will increase the mold cost to varying degrees. Of course, unless the product requirements are high or the customer specifies which materials and processes to use.

Mold procurement can be a significant expense for companies that require molds for their production processes. However, there are several strategies that companies can use to reduce the cost of mold procurement without compromising on quality. In this article, we will discuss some effective ways that companies can reduce the cost of mold procurement.

  1. Conduct a Thorough Market Analysis

One of the most effective ways to reduce the cost of mold procurement is to conduct a thorough market analysis. By researching different mold suppliers, companies can compare prices, production capabilities, and quality control measures. This research can help companies identify the most cost-effective supplier that meets their quality standards.

  1. Optimize Mold Design

Another way to reduce the cost of mold procurement is to optimize the mold design. Companies can work with their mold suppliers to design molds that use fewer materials, have simplified designs, and require fewer parts. This optimization can lead to cost savings in the long run and increase the efficiency of the production process.

  1. Consider Alternative Mold Materials

Companies can also consider alternative mold materials to reduce the cost of mold procurement. For example, instead of using expensive metals like steel, companies can opt for lower-cost materials like aluminum or composite materials. These materials are often cheaper, lighter, and easier to work with than traditional metals, leading to cost savings.

  1. Standardize Mold Components

Another strategy to reduce the cost of mold procurement is to standardize mold components. By standardizing components across different molds, companies can reduce the number of unique parts required and streamline the production process. This standardization can lead to cost savings and increase efficiency.

  1. Collaborate with Mold Suppliers

Finally, companies can collaborate with their mold suppliers to reduce the cost of procurement. By working together, companies and suppliers can identify cost-saving opportunities, optimize the production process, and reduce waste. This collaboration can lead to long-term cost savings and a more efficient production process.

In conclusion, companies can reduce the cost of mold procurement by conducting a thorough market analysis, optimizing mold design, considering alternative mold materials, standardizing mold components, and collaborating with mold suppliers. By adopting these strategies, companies can save money without compromising on quality and increase the efficiency of their production process.