INVENTORY MANAGEMENT

3VC developed a forecasting model for a steel processor’s VMI program – using actual 12-month shipment data – in order to improve the mix of items on hand for its VMI customers. It helps avoid having too much of low-rotation items and too little of high-rotation items. The model allows the customer to define its own criteria for the forecasting calculations.

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FIFO COST OF RAW MATERIALS

3VC developed a calculation model for raw materials (= steel coil) FIFO cost for a steel processor that helps it to forecast future FIFO costs based upon expected sales, incoming steel coil quantities and expected price developments in relation to defined market indices. This supports improving its inventory management from a financial point of view. The model has a simple one-page user input worksheet.

 

COST ANALYSIS

3VC supported the development of a tool for a steel processor to calculate the cost of individual products made on common equipment by correctly allocating common variable costs as well as fixed.​

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ALIGNMENT TO STRATEGY

3VC designed a planning structure to help a steel processor align departments in its internal value chain from steel purchasing to sales, driven by market forecasts. This led to improved planning for incoming steel, better control of raw material inventory and overall better understanding by the whole organization of the key goals.

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LOGISTICS AND ALLOCATION

3VC designed a tool for a steel processor with multiple production locations to calculate the effects of shifting production between locations on overall outbound freight to the market.

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STEEL BUYING STRATEGY

3VC helped a US-based steel processing company determine its steel purchasing strategy, looking at capabilities of each potential vendor, logistics, steel price formulas, development challenges, long term considerations etcetera.

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MARKET DYNAMICS

3VC supported a venture capitalist that wanted to understand the dynamics of the US steel industry, including for example the differences between EAF and BF/BOF steel making and downstream operations as w3ell as the raw materials situation.

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MARKET ANALYSIS (ongoing)

3VC publishes a weekly (confidential and access-restricted) blog for a downstream customer in which we analyze and interpret relevant market information and provide insights in what it could mean for the customer's short and medium term actions.

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SALES STRATEGY (ongoing)

3VC (“we speak your language”) is helping a steel processing customer in Mexico to update and improve its sales results by reviewing current customer base, sales proposition, strength and weakness – including possible production and logistics bottlenecks - , competitive environment and expected future developments in its markets.

 

MASTER COIL OPTIMIZATION

3VC designed a program for a HRC consumer to calculate the best combination of strips (slit coils) in a master coil used for more than one end use, by optimizing for maximum overall yield of the coil. It allows the user to select a “primary” application (with a defined strip width) and proposes the highest-yield combination with another defined product (= strip width), depending on the master coil width and gauge. The program also allows the user to select two products with different strip widths and calculates the total scrap loss.

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INVESTMENT ANALYSIS
3VC supported a private equity firm in evaluating a potential investment in a foreign steel mill by reviewing - among others - production cost, product portfolio, markets and potential challenges.

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STEEL PURCHASING STRATEGY
3VC supports a European company establishing itself in the US market with a new steel processing and manufacturing facility, by developing strategies for steel purchases and inbound logistics as well as "educate" in differences between the European and US steel production and processing environments.

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EXPANSION STRATEGY

3VC supported a Mexican steel processor with its desire to expand into other markets by holding workshops (in Spanish) with ownership and senior management during which we discussed motives, analytics, social and culture differences between regions and businesses, manpower as well as the final business case.

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INTERNATIONAL TRADE

 3VC supported a European trader in analysis of the North American market for certain specialized steel products by reviewing demand, regional and international supply, trade regulations including AD and CVD, effects of IIJA and IRA, etcetera.