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Success Stories

Metalwest Success with GAINS

GAINS Increases Customer Service and Profit for Metalwest

25% reduction in  inventory investment

5% increase in revenues

15% increase in customer service levels

“In a service-driven industry, O’Neal Flat Rolled Metals (now Metalwest) realized that our most important goal and our most highly prized differentiator is our customer service level. If we can offer a higher level of customer service than our competitors, we will increase our business,” stated their President. “A system was needed to monitor and dynamically manage the company’s customer service levels and their associated costs. The system we chose was GAINS, which actually paid for itself before we even implemented based on the savings generated from the GAINSystems’ proof of concept, the IIPSE (Inventory Investment Profit and Service Evaluation).”

Metals Distribution
Metals Distribution

Metals Distribution

GAINS’ unique and proprietary ability to dynamically monitor and analyze every SKU (item) at every Location (SKUL) in the enterprise, is one of the principle reasons why Metalwest was able to quickly document service level and financial improvements. Another reason is the depth of knowledge GAINSystems consultants have regarding the metals distribution industry.

Through the use of exception codes and real-time demand and supply analysis, GAINS quickly identifies SKUs, orders, work tickets, etc. that need special attention. GAINS evaluates the issue identified and then provides Metalwest’s professional buyers and planners an exception report that includes suggested resolutions and actions. Based on GAINS accuracy and dynamic monitoring, Metalwest has also been able to dramatically improve productivity.

“GAINS allowed Metalwest to realize an immediate payback after our 10 week implementation. In our first month of operation, we were able to reduce purchasing, planning, and handling costs. Shortly thereafter we were able to reduce our inventory investment by 25% as we drove our customer service levels up 15% resulting in a 5% increase in revenues.”

– Senior Vice President of Procurement