What is 'Fixed Annual Budgeting' of Metalworking Fluids / Lubricants?
MWF Consultant Engineers Ltd. specialise in allowing manufacturers to purchase all their metalworking fluid and lubricant requirements through ‘Fixed Annual Budgeting’. This system of purchasing essentially converts metalworking fluids and lubricants from being ‘Variable Costs’ to ‘Fixed Costs’. Not only does it integrate upfront savings over the previous year’s budget, but guarantees certainty and stability over the coming financial year.
How will 'Fixed Annual Budgeting' lower my costs of Metalworking Fluids?
Generally, metalworking fluids are supplied throughout the industry on a ‘pay as you use’ / ‘consignment’ / ‘pence per litre’ basis. Namely there is a set price for a barrel of oil determined by the pence per litre cost. Two critical issues for coolant users result from this way of purchasing their metalworking fluid requirements.
- All metalworking fluid problems / inefficiencies that occur with the products, e.g; bacteria failure, fungal growth, foaming, burning, are paid for by the customer. The metalworking fluid user pays to replace the coolant needed to re-fill the machines.
- There is no emphasis placed on the supplier to control or reduce coolant consumption to the customer. It is not in the suppliers interest to try and reduce the users consumption spend because the suppliers profits depend on selling more coolant. Less consumption results in less profit.
With the normal ‘pay as you use’ / ‘consignment’ / ‘pence per litre’ system it is in the interest of the supplier to sell as much as possible and not to worry about the cost of any additional system additives. In effect the user pays for the suppliers inefficiencies.
With ‘pay as you use’ / ‘consignment’ / ‘pence per litre’ supply arrangements, the cost of the latest technology cutting fluid products, that deliver the greatest performance improvements, are financially unviable options to the majority of companies. Simply put, they are deemed too expensive to purchase with no guarantee of return.
- MWF Consultant Engineers’ ‘Fixed Annual Budget’ system of buying metalworking fluids works by MWF Consultant Engineers assessing the consumption, performance benefits and cost savings available from using “best in class” OEM products.
- Following an assessment, MWF Consultant Engineers offer a ‘Fixed Annual Budget’, with all cost savings integrated immediately within the offer. That figure can then be divided into 12 monthly figures for a resulting monthly budget or ‘fixed monthly fee’ for all metalworking fluid supply and management requirements.
- MWF Consultant Engineers will supply All of the metalworking fluid the customer requires over the 12 months within the set ‘Fixed Annual Budget’ / ‘Monthly Fee’. The customer never pays more than the one invoice every month.
- MWF Consultant Engineers Ltd. produce one monthly invoice to cover costs of all ‘Metalworking Fluid’ requirements the customer need.
- MWF Consultant Engineers take control of ordering the customer’s stock. The customer never needs to order anything again. Every month, stock will automatically be delivered.
- The ‘Fixed Annual Budget’s monthly fee includes the supply of all fluids and additives for re-filling of coolant systems as necessary.
- MWF Consultant Engineers Ltd will carry out site visits to monitor / manage / report on coolant condition.
The ‘Fixed Annual Budget’ is the only way of allowing high performance / high cost cutting fluids to become financially accessible and viable options for coolant users.
The ‘Fixed Annual Budget’ works because MWF Consultant Engineers financially commit themselves to saving the customer money. The customer only pays the ‘Fixed Annual Budget’ which have the budget savings integrated into them upfront. The ‘Fixed Annual Budget’ therefore uniquely incentivizes the supplier (MWF Consultant Engineers), not the customer, to ensure the consumption savings MWF Consultant Engineers have assessed are delivered.
The ‘Fixed Annual Budget’ system applies to every size of manufacturer, from small sub-contractors spending a few hundred pounds a year to OEM’s with a spend of tens of thousands of pounds.