CS Category: Parts and Supply Chain

Reduce Storage and Handling Time

Situation

A heavy equipment manufacturer ran into storage and handling issues when ordering bulk shipments of steel for their operations. Being a large-scale manufacturer, they typically ordered a consistent amount of steel directly from the mill on a regular basis. This served them well in terms of getting the cheapest price per pound, but due to bulk quantities and storage restrictions in the plant, most of the product was left outside on gravel lots when it arrived. 

The lack of storage capacity wound up costing them more than what they saved in buying the cheapest price per pound steel. Exposure to the elements caused the steel to rust and become pitted, which increased the time and labor required to restore the steel to its original quality. Similarly, without an organizational system in place to keep track of their inventory, it sometimes took hours to sift through material to find what they needed or dig out the steel buried with snow.

Solution

Steel inventory in warehouse

After realizing their strategy was costing more than it saved, the manufacturer quickly began to look for alternative options. West Central Steel was recommended as a reliable partner for carbon steel supplies and parts processing. Our sales team worked closely with their purchasing department to compare their product requests with the inventory we had on hand.

Result

Thanks to our steady supply of steel and organized storage and inventory processes, West Central Steel was able to review the volumes needed and process and ship the steel out the next day — reducing inventory costs by 30%, handling time by hours each week, and increasing the overall product quality while decreasing costs. 

As a result, West Central Steel continues to be a reliable and efficient partner. Our strong relationships with a variety of mills allow us to provide our customers with large and small quantities of steel where and when they need it. It’s another example of how we help our partners build their success. 

If your manufacturing facility is struggling with storage and handling efficiency issues, contact West Central Steel to tell us about your situation. We have the material and capabilities to provide a unique solution catered to your specific needs.

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Grow profits faster with complete parts processing

Situation

A construction machinery company was looking for ways to increase production and reduce costs but was running into challenges allocating space and finding qualified people. To overcome these obstacles, they began looking for partners that could help them produce their parts, enabling them to reallocate their space and people.

The company builds machines that weigh over 100,000 lbs and contain up to 1,000 custom parts. Each machine is made-to-order based on the customer’s unique set up. Oftentimes, the company only had one to two weeks turnaround from receiving designs to completing the part production. Finding a partner that would allow them to keep their short lead times while handling the complexity of one-off parts and helping them grow was critical.

Solution

The company started by outsourcing subs assemblies to West Central Steel that could be kitted and delivered to their welding cells for easy assembly. With each sub assembly, West Central Steel analyzed the parts and tolerances to find the optimal processing methods. In many cases, secondary operations were eliminated, and tolerances tightened due to cutting-edge processing.

As the company saw success with each sub assembly, West Central Steel stood out from other suppliers. The company saw reduced costs, quick lead times and a great partnership that developed. Like most companies that are outsourcing parts for the first time, there were many conversations to confirm specifications, transfer tribal knowledge and update designs to eliminate “make it fit” grinding that might have been done in the past. Regular meetings and conversations between the company and West Central Steel helped build trust and ensure the parts were exactly what they needed.

Results

This partnership now covers more than 10 different machines spanning 5,000 custom parts and over 100,000 total parts produced. The customer has achieved everything they needed—their capacity has grown and production costs have decreased. West Central Steel is a proven partner, delivering finished parts with speed and accuracy to help customers meet their commitments and grow their businesses.