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Service Steel

Service Steel has been a family-owned company for over 100 years. They service the tube & pipe industry and pride themselves on knowing their customers’ needs just as well as the customers. Service Steel hoped to set itself apart by offering cost-savings to their customers via scrap utilization with SigmaNEST. Many customers require yearly 3% price reductions and tight margins make this difficult, but Service Steel was determined to find a solution.

Service Steel considered SigmaNEST as a part of this solution and found that SigmaNEST allows additional parts to be added into existing runs. Meaning, if a customer has a different part that will fit in a current nest that part can be produced for the cost of cutting, this satisfies the entire 3% which lowers customer costs while increasing revenue.

SigmaNEST helped us win a contract approaching $100 Million.
Ed Westerdahl, President & CEO

Buying Flexibility

SigmaNEST allows users to choose the best possible sheet sizes (almost never a stock size) that saves money on every sheet that is ordered to the optimal size vs. stock size.

SigmaNEST then re-nests to any sheet size and determines the yield. Savings are achieved by making spot buys on discounted material based on these yield calculations.

Results: High Payoff with SigmaNEST

Service Steel is now saving 15% to 20% on material costs through this integrated solution. SigmaNEST helped Service Steel to win a contract approaching $100 million.

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