Higher quality product while saving time and money.
North Shore Steel (NSS) processes steel for large projects. Think wind turbines, municipal infrastructure, and rockets. They provide the steel for big things that can’t fail. The most exacting customers seek out NSS for their projects because NSS’ fabrication and processing is precise, high quality, and reliable.
NSS employs the most skilled craftsmen and engineers. They do hard, dangerous work that requires the highest quality supplies to do so safely. The steel products are the focus, though, and the last thing NSS and their customers want is to spend time finding, testing, and negotiating pricing and delivery of non-steel supplies.
NSS has multiple independently operating subsidiaries in different geographies, and they consolidate financial performance into the parent company. Every company has independent procurement departments with different supplier relationships.
NSS uses A LOT of consumables, PPE, and specialty accessories/supplies for steel fabrication. The overall expense of such items is a significant annual portion of their budget, and its significance is exacerbated by fluctuating steel commodity prices.
NSS and TSX Gear initially worked together on basic PPE that was regularly used in high volumes - gloves, goggles, etc. TSX Gear created a manufacturing supply chain that delivered their identical preferred items at a substantial savings.
TSX then provided NSS its own web procurement portal and invited the managers at the different subsidiaries to login. No training - just an email invite to order their PPE via the site.
The response was quiet… but impactful.
NSS managers immediately began procuring their PPE via the site, regularly, and in high volumes. It was easy to use, reliable, and had only the products they needed. Finance got monthly reports of PPE consumption, substantiating immediate cost savings. Win Win.
Soonafter, the managers asked to purchase more of their supplies through the site. At NSS’ request, TSX analyzed NSS’ annual supply purchases by volume, product type, and pricing.
This analysis revealed undesirable patterns - widely variant pricing (up to 300% differences), product specifications, and dozens of suppliers with disparate payment terms, reliability, and delivery timeframes.
TSX added the safety/operations-approved products, at their preferred pricing and uniform payment terms. The site preserved reliable supplier relationships - it just made their products easier to order.
The distributors were happy because POs just showed up, rather than having to work up customized quotes. The managers were happy that they could shop from their own custom store in minutes rather than from armies of sales reps requiring hours of quote solicitations. The company was happy with the cost savings, consolidated cost allocation reports, and consistent use of the safest supplies across their subsidiaries.
The customers? They never knew. They were just happy with NSS’ high quality, safe, and cost-effective work.
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