Many shoppers know the value of buying in bulk. If you have ever stocked up on bread, cereal, coffee and paper towels at a warehouse store, you know how great it can be for your household budget.
As a business owner, you can take this same approach when purchasing needed supplies for your new company. For instance, rather than buy the parts you need for engine repair and replacement as you need them, it makes sense to purchase multiple items, including custom parts, and have them on hand. This will not only help to expedite your repairs for your customers, you should also see some significant savings.
As for how to more efficiently order custom and other parts in bulk for your startup’s production needs and avoid some common pitfalls at the same time, consider the following tips.
You’d Better Shop Around
Just as you like to compare prices at different stores when making a major purchase for your home, the same approach should be used when choosing suppliers that are worthy of your business. When you find a wholesaler who can custom make the parts that you need, take the time to read reviews of the company. Also, ensure that each supplier has a large enough inventory to meet your needs; the last thing you want is to go with a wholesale company for a custom part, only to find out that they don’t have anything in stock.
Let’s use o-rings as an example. They are one of the most common seals used in machine design, and are found in multiple components of automobiles from the air conditioning system to the engine. They are also very easy to purchase in bulk form, so it should be simple to stock up. Rather than outsourcing your o-ring purchases overseas or with a company that is known for issues with their supplies, sourcing with a reputable firm will ensure your supply chain isn’t interrupted and you will always have the quality o-rings you need in stock.
Double and Triple Check Before Ordering
As the owner of a startup, if you accidentally order an incorrect single and small part, it won’t be a huge deal in the grand scheme of things. But when ordering in bulk, if you suddenly have 200 custom parts for automobiles that turn out to be the wrong size or material, you can be out big bucks. As Business First Family notes, to prevent this from happening, measure any prototype specifications very carefully and then double or triple-check everything prior to placing your order. Go with the most accurate measurements possible, down to the thousandth of an inch, and do your due diligence to ensure the materials are also correct.
Buy What You Will Use the Most Often
Yes, you might find that buying virtually all of your needed parts for your startup in bulk will be cheaper than going the piecemeal route. At the same time, you might not use certain items very often, which means you have spent your hard-earned money for products that end up collecting dust in the inventory warehouse. According to Fullbay, anything used for preventive maintenance is a solid bulk purchase; for instance, filters and oil for car repairs. Resist the urge to buy the things you rarely use, even if the price is better, like the special custom wheels for sports cars or other accessories the average customer will not want.
Smart Bulk Shopping Can Really Help Your Startup’s Budget
Bulk shopping is a good idea in many instances, but it is not a one-size-fits-all approach to stocking your inventory. By doing plenty of research and finding reliable companies with great track records, making sure you are ordering exactly the right things from your wholesalers and focusing primarily on the items you will use the most, your startup and its budget should both be in great shape.