September 5, 2015 / agility, best practices, continuous improvement, Cost Management, customer delivery, industry news, lean manufacturing, LIT, preventative maintenance, resource allocation, strategic planning, value-added services
Staying ahead of the competition can often seem like an impossible task, especially in today’s marketplace. Continuous improvement is now the expectation, lean manufacturing is fairly commonplace, and uncertainty about market conditions makes it hard to gauge investments and risk.
So how do you get ahead in the current landscape? While it would be near impossible to truly answer that question, the LENOX Institute of Technology (LIT) gathered a few examples of high-performing service centers and outlined some of their key traits below. How does your service center stack up against these leaders?
Reliance Steel & Aluminum
Los Angeles, CA-based Reliance was ranked number one in Metal Center News’ (MCN) annual survey, “Top 50 Service Center Industry Giants.” The industry leader, which operates more than 290 locations in 29 states and 11 countries, continues to expand its reach. According to Reliance’s profile in MCN, the service center shines in three key areas:
- Value-added processing. Reliance’s services range from cut-to-length/blanking and laser cutting, to sawing and water-jet cutting. The company has made 58 acquisitions since 1994 and continues to acquire businesses that add to its capabilities.
- Quick delivery of small orders. According to the company web site, it isn’t uncommon for Reliance to fill and deliver orders within 24 hours of receipt. Perhaps that’s why more than 90 percent of customers return to do business.
- Strategic supplier relationships. According the MCN, Reliance “continues to cherry-pick the best players in metals distribution, along with strategic downstream processors.”
A.M. Castle & Co.
In addition to distributing a wide range of metal and plastic materials, the leading metal service center also performs simple sawing operations at several of its locations, including its main distribution center in Franklin Park, IL. A case study, published here by LIT, describes the company’s three areas of focus:
- Lean improvements. Glen Sliwa, who is responsible for keeping saw operations up and running, says the company is focused on continuous improvement and is “always doing something to upgrade.” About 7 years ago, the operation underwent a lean transformation, which included major changes in workflow and equipment placement as well as simple improvements like color-coding material. The facility also uses the lean tool known as 5S, which eliminates waste by keeping work areas clean and organized.
- Preventative maintenance. According to Sliwa, preventative maintenance is critical to keeping production moving. Operators perform daily maintenance on machines by following a checklist that they have to verify and sign at the end of every job. Sliwa and his team also perform more in-depth PM checks on a quarterly basis.
- Close supplier relationships. Sliwa works closely with his suppliers and relies on their expertise any time his team has a cutting issue or is looking to improve performance. In one instance, operators were having a hard time reaching productivity goals when cutting several grades of stainless steel. A technical representative from Sliwa’s blade supplier came out to evaluate the problem and suggested a new blade type. Not only did the new blade cut Sliwa’s cutting time in half and double the blade life, the supplier also trained his team and tuned up his saws.
Klein Steel Service Inc.
In May 2015, American Metal Market (AMM) magazine named Klein Steel one of its service centers of the year. According to the magazine, the Rochester, NY-based company experienced its largest year ever in 2014 in terms of weight shipped and revenue generated. The following are just a few notable attributes of the service center:
- Technological investments. Klein launched a newly designed web site last year that increased its web site visitors by 50 percent and earned it three awards, according to AMM. The company also invested in technology that uses data and information flow to streamline and improve operations.
- Customer service. After earning an almost-perfect customer retention rate and millions of dollars in new customers last year, it’s clear that customer service is important to Klein. In fact, a 2014 survey revealed that customers do business with Klein because of great customer service, on-time delivery, and rapid quote response time, reports AMM.
- Strategic planning. In addition to the AMM’s honor, Klein was also named Metals Distributor of the Year at the 2015 Platts Global Metals Awards. As detailed in Platts Insight magazine, the service center scored high marks for its ability to strategically plan for growth while keeping an eye on the economy and remaining flexible. According to the Insight, Klein “maintains steady inventory, buying according to customers’ forecasted needs and minimizing speculative purchases that increase risk.”