Explanation of the 'Fixed Annual Coolant Budget' in Principle

Generally, metalworking fluids are supplied throughout the industry on a “pay as you use” basis.  Namely there is a set price for a barrel of oil determined by the pence per litre cost.  Two critical issues for coolant users result from this way of selling lubricants.

• All coolant problems / inefficiencies that occur with the products, e.g; bacteria failure, fungal growth, foaming, burning, are paid for by the customer.  The user pays to replace the coolant needed to re-fill the machines.

• There is no emphasis placed on the supplier to control or reduce coolant consumption to the customer.  It is not in the suppliers interest to try and reduce the users consumption spend because the suppliers profits depend on selling more coolant. Less consumption results in less profit.

With the normal “pay as you use” or “consignment” system it is in the interest of the supplier to sell as much as possible and not to worry about the cost of any additional system additives.  In effect the user pays for the suppliers inefficiencies.

With “pay as you use” or “pence per litre” supply arrangements, the cost of the latest technology cutting fluid products, that deliver the greatest performance improvements, are financially unviable options to the majority of companies. Simply put, they are deemed too expensive to purchase with no guarantee of return.

The 'Fixed Annual Coolant Budget' system

1. MLS' 'Fixed Annual Coolant Budget' system of buying coolants works by MLS assessing the consumption, performance benefits and cost savings available from using “best in class” OEM products.
2. MLS assess what the customer should pay over 12 months, whether that be £12,000 or £1,200.  That figure is then divided by 12 for a resulting monthly figure or 'fixed monthly fee'
3. MLS will supply All of the coolant the customer requires over the 12 months within the set 'fixed fee'  The customer never pays more than the one invoice every month.

The 'Fixed Monthly Fee' in Practice

• MLS produce one monthly invoice to cover costs of all MWF the customer requires.
• MLS take control of ordering the customers stock.  The customer never needs to order anything again.  Every month, stock will automatically be delivered.
• The fixed monthly fee includes the supply of all fluids and additives for re-filling of coolant systems as necessary.
• MLS will carry out site visits to monitor / manage / report on coolant condition.

If you have a query regarding the 'Fixed Annual Coolant Budget', please Contact Us or fill in the brief enquiry form below.