The Benefits of Long-Term Agreements for Metal Finishing Services

Commitment can be a scary idea—even when it comes to metal finishing services. Establishing a long-term agreement to contract a part with one metal finishing shop for a year or more might seem daunting and even unnecessary. Why not stick to intermittent short-term contracts as needed?

It turns out that there are a lot of reasons to choose an LTA over short-term contracts. 

Want the details? Keep reading.

Why Consider a Long-Term Agreement? 

When we sign an LTA with a customer, both parties benefit. 

Aero TMF benefits from having a clear forecast of upcoming work, allowing us to plan ahead for ourselves and our customers. Customers benefit from fixed prices and guaranteed lead times.

Inventory management 

long-term agreements

With the advance notice of an LTA, we can keep our inventory stocked with everything needed to complete your parts quickly, like paint and materials for complex masking. We can also circumvent ongoing supply chain issues with strategic ordering.

Pricing stability 

LTAs guarantee fixed pricing to protect customers against market volatility. There may be specific annual price increases based on raw material costs and labor market changes, but no matter what, you’ll be locked into predetermined prices for the duration of your LTA. 

Guaranteed lead times

LTAs establish set lead times, like 5-7 days for painting operations. There are late fines if the shop fails to deliver the part on time. Many of our competitors shy away from LTAs for this reason, but at Aero TMF, we use the guaranteed lead times to plan ahead and deliver on time, every time.

How to Establish an LTA for Metal Finishing Services

At Aero TMF, we have a streamlined process for establishing LTAs:

  1. The customer submits a quote request, and we discuss how to optimize pricing.

  2. We run a sample piece and complete a first-article inspection.

  3. The customer reviews our processes, and we answer any questions.

  4. We establish an LTA that outlines quality standards, lead time, and pricing.

LTAs can vary in length, generally from one to five years, and are tailored to your specific needs. Unlike our competitors, we prefer LTAs for many different types of engagements, including ongoing or recurring orders. 

We believe in collaborative decision-making and strive to meet customer needs, whatever they may be. In our eyes, LTAs are a win-win for customers and our shop. We gain the flexibility to confidently meet your needs, and you gain the peace of mind that comes from fixed prices and guaranteed lead times. 

If you have a recurring part need, an LTA can save you time, money, and stress. Request a quote to get started.

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