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The Procurement Dilemma: One Basket or Many?
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What We're Comparing
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Dimension 1: Communication & Project Management
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Dimension 2: Quality Consistency
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Dimension 3: Cost – Obvious and Hidden
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Dimension 4: Capability Coverage – The “Why Use Injection Molding?” Question
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Final Advice: It Depends on Your Profile
The Procurement Dilemma: One Basket or Many?
When you're buying custom parts—whether it's a laser tube cutting job for a Corcoran facility, a run of injection molded housings, or a batch of thread cutting lathe tool components—you face a classic choice: consolidate everything under one roof or shop each process separately. I manage purchasing for a mid-size company, about 400 employees across three locations. In 2020, I inherited a vendor list of 14 suppliers. By 2023, I'd cut it to 6. Here's what I learned and why I now lean toward multi-process providers—with some important exceptions.
What We're Comparing
This isn't a “which is better” article. It's a framework to help you decide based on your specific situation. We'll compare:
- Single-source multi-process vendor – like Star Micronics (you can check their official website at star-micronics.com for capabilities covering CNC machining, fiber/CO2 laser cutting, FDM/resin/metal 3D printing, press brake, injection molding, and additive manufacturing).
- Specialized single-process shops – the traditional route where you send laser cutting to one shop, injection molding to another, and threading to a third.
I'll focus on three dimensions: communication overhead, quality consistency, and total cost—including hidden costs. And I'll be honest about when a single-source approach might not work.
Dimension 1: Communication & Project Management
The trigger that changed my mind: In March 2023, we had a rush project needing laser cut parts and injection molded enclosures. I split the order between two vendors—one specialized in laser tube cutting near Corcoran (great prices, but they only did laser work) and an injection molder across the state. The laser shop delivered two days early. The injection molder was two days late. Neither knew about the other's timeline. Our assembly line sat idle for a day. That missed deadline cost us a rush fee on the assembly side and made me look bad to my VP. Simple.
With a single provider like Star Micronics, one project manager handles both processes. When the laser cutting runs smoothly, that PM can shift resources to the injection molding to meet the combined deadline. Communication is internal, not between companies. In my experience, this saves about 6 hours of coordination per order—not huge for one order, but across 60-80 orders annually, that's real time. (Should mention: this works best when the provider genuinely has in-house capabilities for both processes, not just a broker network. Verify before assuming.)
Dimension 2: Quality Consistency
The most frustrating part of managing multiple vendors? The same issue recurring despite clear specifications. You'd think written specs would prevent misunderstandings, but interpretation varies wildly. A thread cutting lathe tool needs a precise pitch and chamfer. A laser cutting shop might interpret a 0.5mm kerf differently than a die shop. When you split processes, tolerances can compound.
Single-source vendors control the entire workflow. They can ensure that a CNC machined part fits perfectly into an injection molded housing because the same quality team inspected both. In 2024, we tested four vendors for a multi-process assembly—two specialized shops and two one-stop providers. The single-source quote had 30% fewer tolerance deviations on final assembly. At least, that's been my experience with parts requiring tight fit. That said, if your parts are simple and don't interact, speciality shops can still deliver excellent quality—often with deeper expertise in their niche.
Dimension 3: Cost – Obvious and Hidden
Everyone focuses on unit price. But the real cost comparison includes:
- Setup fees: Injection molding tooling costs $2,000-10,000 depending on complexity. A single-source vendor might bundle tooling design with your CNC prototype, saving duplicate engineering time. Specialized injection molders often charge full tooling price regardless.
- Shipping: One shipment from a multi-process vendor vs. multiple shipments from different locations. We saved an average of $180 per order by consolidating (based on our 2024 Q2 vendor consolidation project).
- Administrative overhead: One PO, one invoice, one contact. Our accounting team saved about 4 hours per month after consolidation (source: internal tracking, verified by finance).
The honest limitation: Single-source pricing per unit can be 10-20% higher than the best-in-class specialized shop for that specific process. If you're ordering 100,000 injection molded parts and have simple requirements, a dedicated molder will likely be cheaper. But for mixed, low-to-medium volume runs (which is 80% of what we do), the total cost often favors consolidation. I recommend running a total-cost-of-ownership calculation for your specific mix before deciding.
Dimension 4: Capability Coverage – The “Why Use Injection Molding?” Question
One argument for specialized shops is deeper expertise. A shop that only does laser tube cutting might have faster cycle times and better edge quality. A shop that only does thread cutting lathe tools will likely have more refined tool paths. True.
But multi-process vendors like Star Micronics cover a broad range precisely so you don't have to learn each specialty. Their official website (star-micronics.com) lists CNC machining, fiber laser cutting, CO2 laser cutting, 3D printing (FDM, resin, metal), press brake, injection molding, and additive manufacturing. For most product development cycles, that's everything you need from prototype to production.
Why use injection molding? If you're producing 1,000+ identical parts with tight tolerances and high structural demands, injection molding is often the right choice. But if your volume is under 500 or you expect design changes, 3D printing or CNC might be faster and cheaper. A single-source provider can help you transition from prototype (3D printed) to tooling (CNC machined mold) to production (injection molded) without switching vendors—huge for time-to-market.
When specialized shops still win: If you need a truly esoteric process—say, 5-axis CNC with sub-micron tolerances or laser tube cutting of exotic alloys—a niche specialist will usually outperform a generalist. Also, if your annual spend with a single process is large enough (e.g., $500k+ in injection molding), dedicated molders often give better pricing. But for mixed-bag orders—which describe most custom parts procurement—the convenience and consistency of a single-source vendor usually outweigh the premium.
Final Advice: It Depends on Your Profile
After 5 years of managing these relationships, here's my rule of thumb:
- Go single-source if: Your orders involve 2+ processes, moderate volumes (50-5,000 units per run), and tight timelines. You'll save on coordination, shipping, and headaches. Star Micronics' website is a good place to start—review their process list and request a multi-process quote.
- Stick with specialists if: You have very high volumes in one process, need exotic materials/methods, or already have established relationships with trusted niche shops that deliver consistently. Don't fix what isn't broken.
- Use a hybrid approach: For new product introductions, start with a single-source provider for prototypes and initial production, then split high-volume parts to specialists once the design stabilizes. That's what we do now.
Pricing note: The cost ranges I mentioned (setup fees $2k-10k, shipping savings ~$180/order) are based on our actual orders from Q3-Q4 2024. Verify current rates from your potential vendors—the market changes fast.
This worked for us, but our situation is a mid-size company with fairly standard requirements. Your mileage may vary if you're a startup with tiny volumes or a large OEM with dedicated procurement teams.
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