Due to increasing demands of major OEMs to reduce inventory, improve lead times and reduce cost int he supply chain, major OEMs is investigating alternative methods of steel delivery.

Scenario

A leading HRSG OEM purchased HRSG fin coils from mills for their Europe factory, as this was traditionally the most cost-effective approach.

However, this approach had started to cause some issues in the supply chain due to the increased competition from other HRSG manufacturers globally and the instability of raw material supply. To make the plant more competitive, the HRSG manufacturer was focusing on several workstreams to facilitate lead time reduction upto 60%:

•           Standardisation of design and manufacturing

•           Standardisation of raw material requirements

•           Just-in-time raw material delivery to reduce the need for carrying stocks of raw materials

•           Saving on raw material costs

Murray Energy has been identified as their preferred partner to help drive the raw material procurement improvements targeted.

Solution

To be a supply solution partner to the HRSG OEM, Murray Energy purchase and slit the mother coil from sources agreed by customer and deliver in slit form to the consignment stock in customer’s factory in Europe. Material is held by Murray Energy, which can be called off as required.

Key benefits of working with ME

•           A tailored-suit solution for the management of the raw material supply chain

•           Reliable and approved sources of raw materials

•           Customer can concentrate on world class production without the working capital strain

•           Just-In-Time delivery on raw material

•           Guaranteed continuous improvements in the supply chain to ensure customer receives the best quality material at the best price

•           High level of technical support in developing an optimum raw material supply range

The model can be replicated in most supply chains where material is purchased from mills in volume.

Contact Murray Energy here to discuss how we could help to make your company’s steel supply chain more efficient.