Stock Tooling Program Benefits:
- Pricing discounts based on volume
- Pricing guarantee for duration of contract
- Customer maintains less inventory
- Shorter Lead Times
- Reduction in number of quotes and purchase orders (less paperwork)
- Aids Wauseon Machine in management of workloads and forecasting sales
Stock Tooling Program Terms and Conditions:
- A twelve month blanket purchase order will be issued to Wauseon Machine & Manufacturing (WMM) covering mutually agreed upon items that will fall under this Stock Tooling Program.
- Based on the customer’s annual forecast, WMM will fabricate tools in the determined effective lot sizes. WMM will store such completed tooling in a secure area on its premises. Upon receiving proper release, finished goods inventory will be released within one working day or as scheduled.
- WMM will maintain a minimum/maximum stock quantity for each part number as determined by the customer. This maximum quantity is the most the customer will be liable for.
- Quarterly reviews will be conducted between the customer and WMM to verify that the inventory counts will be supplied to the customer upon their request.
- The customer will release and pay for the tool(s) under normal terms for any stock that is in inventory at the end of the said twelve month period up to the predetermined maximum stock quantity. Or issue a new 12 month blanket purchase order for an additional year.
- Each item covered under this agreement will have an individual inspection report and lot number assigned when it is put into finished goods inventory.
- In the event that changes in specifications and/or design affect the tooling in WMM’s inventory (finished goods or work in-process), WMM will determine the feasibility and the cost to rework the tooling to meet the new specifications and/or design if determined feasible. Upon written approval from the customer, WMM will conduct rework. The customer will be responsible for the additional cost to rework the tools.
- Should any tooling become obsolete during the term of this agreement, the customer will be obligated to pay for any in-process and/or finished goods inventory up to the predetermined maximum stock quantity. Any item not released or renewed within one year of the order date will be considered obsolete.
- WMM reserves the right to adjust its piece price due to significant increases in material and/or outside services. The customer will be advised of such required price adjustments in advance of the actual production run.