WHY SHOULD THE FORGING INDUSTRY CHOOSE EATON STEEL BAR COMPANY? SIMPLY PUT, VALUE.
Posted on Nov 14, 2012
For years, the business model for many forgers has been to purchase their raw material bar stock mill direct and to cut the material into blanks in house on their own shears or saws. This model worked for them, particularly in times of steady pricing and flexibility from the mills in regards to shipments. But what happens when the market changes rapidly?
At Eaton Steel Bar Company we have seen the hot mills become much less willing to hold inventory, shifting their business models to a “Roll & Go” philosophy and we have seen pricing, both base and surcharges, become very volatile. These changes increase the risk for Forgers, forcing them to speculate in the market and time a large buy and potentially hold large inventories or run the risk of playing the market and running short on inventory if their forecasts were off.
Eaton Steel Bar Company is the solution to the issues of inventory management, overhead costs, and price stability. By selecting Eaton Steel Bar Company as your supply chain solution, we will reduce your overhead costs, smooth your pricing, and provide opportunities for Forgers to focus on their core competencies.
Since Eaton Steel Bar Company was formed nearly 60 years ago, our core business has been inventory management. Be it managing a handful of items or thousands of items, cut pieces or long bars, Eaton Steel Bar Company will manage your inventory so that you have your steel bar requirements when you need them.
By allowing ESBC to maintain their inventories in cut pieces or long bars, Forgers, will eliminate a majority of their overhead costs. Eaton Steel Bar Company doesn’t view inventory as a bad word and because of our buying power, (see ‘At Eaton Steel Bar Company, Inventory Isn’t A Bad Word!!’ blog from October 15, 2012), we are able to be the shock absorber of the market volatility for our Forging customers.
ESBC’s precision cutting services (both saw cutting and shear cutting) also allow Forgers to focus on their core competency, forging. By allowing ESBC to cut your product into blanks, Forger’s can free up their floor space to add more presses/hammers thus increasing their capacity to expand their business or take on new business.
Inventory Management, reducing overhead costs, value added services, and along with ADICA Trucking and Titan Metallurgy make Eaton Steel Bar Company the best solution in bringing value to the Forging Industries steel bar supply chain!!