2 min read

Benefits of a Blanket Purchase Order for Carbide Cutting Tools

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Are supply chain issues creating chaos? Need pricing stability on the cutting tools you count on most? You need the security that comes with blanket pricing.

Blanket pricing allows you to lock in the price of a tool to cover a specific period of time. Blankets are established based on estimated tool consumption and can be set for any length of time up to a full year. This can be an advantage, especially crucial during periods of economic volatility and high inflation.

Better Price and Improved Cash Flow

You will always save when buying in higher quantities. At MITGI, you can achieve cost savings on high-volume purchases of standard tools - we offer cost savings at 100 and additional savings when buying more than 250. There is a similar pricing structure for special, custom-designed tools (which could be available in as little as 3 days). Blanket pricing brings the advantages of volume pricing but also allows you to take (and be billed for them) over time. You only pay for the tools as you take delivery. This frees up your cash flow for other needs while still receiving the tools you need to meet the demands of production.

Easier Planning

Another advantage of blanket pricing is that it makes production planning easier. Companies that order tools on an as-needed basis have to keep track of their inventory levels closely and make sure they have enough tools on hand to meet demand. This can be a time-consuming and difficult process. By placing tools on a blanket, a company can be sure that tools are available whenever they are needed.

MITGI offers customers multiple ways to take delivery. You can opt to have a set number of tools delivered on a regular basis (i.e. 50 per month) or contact us when you want some sent and they will ship as quickly as you want (even overnight when necessary).

Having tools on the shelf brings added flexibility. When your production demands change, the blanket can be adjusted to accommodate it. Ship schedules can be pulled in or pushed out to match production schedules any time they move.

How Do Blankets Work?

  • Request a quote for blanket pricing. Any tool type or quantity can be ordered as a blanket.
  • When you place the order, designate whether you want to set a ship schedule or take them as needed.
  • In the case of a ship schedule, designate the ship dates and quantity to ship. These can be adjusted, but provide a basic plan.
  • Tools are invoiced as they ship.
  • Tools that are used in high-volume production are good candidates for blanket orders.

Strategic Partnership

You know how much downtime costs in the machining industry, and any chance you have to limit wasted time is another chance to make money. MITGI understands and built its business with the goal of being a strategic partner for manufacturers, rather than just a supplier. This led us to invest in quick-turn custom tool delivery (since custom tools can dramatically improve performance) and to offer blanket pricing.

Ready to discuss how to use blankets to your advantage?

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