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.
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.