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what 3VC can do for you, always working  with  you

  • Align internal value chain to a market-oriented strategy

  • Develop a model to calculate individual product costs

  • Develop a steel and/or raw materials purchasing strategy

  • Measurably improve the performance of the purchasing department

  • Develop useful and measurable KPI's that actually help your team

  • Help you understand and interpret market dynamics

  • Develop a differentiating marketing strategy

  • Develop simulations and metrics to analyze future steel cost in contracts

  • Support your acquisition and expansion plans with solid and unbiased analysis

  • Improve the quality of your raw materials inventory - do more with less

  • And many more that you may not even have thought of. Ask us!

Project Portfolio Overview

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.

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.

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.

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.

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.

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.

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.

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.