Expediting Fees at Giering Metal Finishing
Over the past few years, we have witnessed an increase in our overtime hours. After further assessment, we determined from job reports that a significant portion of our overtime was spent on expediting orders. Customers were often requesting prioritized production space in front of already planned production schedules. Time during normal work hours was not enough to accommodate immediate needs for customers that required their jobs finished far ahead of regular stated lead times.
Whether the overtime was required to work on that specific job or another customer’s job that was pushed back, that overtime cost must be covered by the responsible company. We cannot be expected to put forth extra effort without proper compensation, especially if we are accommodating the immediate needs due to delays in the upstream supply chain, unforeseen circumstances, inadequate planning or simply a demand that requires above and beyond service.
We have analyzed the time and cost associated with expediting jobs with respect to our overhead cost and have come up with a simple formula to help calculate scaled expedite charges for our customers. Starting July 1st, 2016, Giering Metal Finishing will be implementing an expedite charge based upon the work required and total invoice cost. If expediting is required, a flat set up and tear down charge will apply to cover the relevant departments preparation PLUS a 20% percent charge to the total invoice to cover processing time.
If a department is not busy, by all means we will accommodate the fast request without an expedite fee as we have always done for our customers in the past. This charge will only apply to our departments that are in fact planned out and the only way to expedite the order within the timeframe is with overtime.
Our goal is to avoid these kinds of situations in order to maintain a smooth rapport with all our customers. We encourage our customers to project their needs so we can better coordinate our schedules and evade charging for overtime.
We appreciate your understanding in this matter and look forward to continuing our services to you.