Many customers require yearly 3% price reductions. Tight margins make this difficult. Service Steel hoped to set itself apart by offering cost-savings via scrap utilization.
SigmaNEST allows additional parts to be added into existing runs. If a customer has a different part that will fit in a current nest that part can be produced for the cost of cutting. Satisfying the entire 3% in this way lowers customer costs while increasing revenue.
“SigmaNEST helped us win a contract approaching $100 Million.”
Ed Westerdahl,
President & CEO.
President & CEO.
Buying Flexibility
SigmaNEST allows users to choose best possible sheet sizes (almost never a stock size) saving money on every sheet that is ordered to the optimal size vs. stock size.
SigmaNEST 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: $100 Million
- Service Steel is saving 15% to 20% on material costs.
- SigmaNEST helped Service Steel to win a contract approaching $100 million.
Industry
Steel Service Center
Production
- Facility: 300,000 Square Feet
- 11 Laser Machines
- 8 Plasma Tables
- 6 Press Brakes