Written by: Jim Morton, National Tube Supply
November, 2024: In 1856, Sir Henry Bessemer revolutionized the steel industry with a process for mass production. If he could see the industry today, he would likely be stunned by the technological advancements not only in steel production but also in the metals distribution process.
INFORMATION AND TECHNOLOGY
A majority of metal service centers have evolved into highly advanced operations, integrating technology across both front-and back-office processes. Vendor-managed inventory (VMI) systems control stock levels, forecast demand and automatically replenish sold material to improve turnover, reduce stockouts and reduce costs.
Advanced shipping notices give detailed information on incoming deliveries, allowing warehouses to prepare for receiving and managing inventory with greater efficiency. Additionally, business intelligence (BI) tools provide critical data insights for more informed decision-making. At NTS, for example, BI is used in sales to enhance the customer experience and in logistics to evaluate outbound freight.
Tracking inventory has also become far more efficient, thanks to the adoption of bar code scanners and RFID technology. These tools ensure valuable metals are easily located, tracked and accounted for, streamlining the entire process of picking and shipping to customers.
Automatic material storage and robotic arms for handling boost operational efficiency and enhance safety.
SUSTAINABILITY
On the warehouse floor, sustainability has become a key focus. Many service centers now rely on natural lighting, using skylights during daylight hours, which reduces or eliminates the need for artificial light. LED lighting has replaced older, inefficient fixtures like high-pressure sodium, fluorescent and mercury vapor lamps. This switch reduces energy consumption, increases light quality and lowers maintenance costs due to efficiency and longer-lasting bulbs.
Service centers also are implementing comprehensive recycling programs for scrap materials and packaging to minimize their environmental impact. Many are investing in renewable energy, like solar power, to run their operations with a focus on sustainability and less dependency on the electrical grid. In the distant future, electric and hybrid delivery trucks may also be introduced to reduce emissions while delivering metal to customers.
The metals industry, historically seen as resource-intensive, is now increasingly adopting green technologies and sustainability practices. This shift isn’t just a temporary trend. It’s becoming an integral part of business strategies for companies looking to stay competitive in an ecoconscious world.
Sustainability will remain a driving force as regulatory pressures increase and consumers demand more eco-friendly solutions. Service centers will need to adopt even more environmentally friendly practices, with advancements in material recycling, energy efficiency and carbon footprint reduction playing key roles in future operations.
AUTOMATION
Technological advancements extend beyond inventory and lighting. Automated processing equipment like CNC-controlled saws and tube lasers have dramatically improved the speed and precision of material processing. These machines reduce raw material waste, increase throughput with use of auto-cutting and automation, and help companies meet tight lead times while offering value-added services.
Automation has also transformed material handling. Automatic material storage and retrieval systems and robotic arms for material handling are now becoming mainstream within metals warehouses, moving materials with reduced human intervention. This shift not only boosts operational efficiency but also enhances safety, as automation reduces the potential for human error. As a result, employees can focus more on quality control, specialized tasks and customer-specific demands.
AI AND ANALYTICS
Looking to the future, metal service centers are set to continue evolving with cutting-edge technology. AI and machine learning are expected to revolutionize everything from customer service to materials management. Predictive analytics will allow companies to forecast customer needs and adjust operations in real time. Meanwhile, innovations such as additive manufacturing will make it possible to produce custom metal products on demand.
Service centers are now far more than simple buyers and sellers. They are sophisticated operations driven by improvements in technology, automation and a growing commitment to sustainability. Companies like NTS are investing and exploring many of these innovations, delivering increased value to customers and shareholders while working diligently to become better neighbors in the communities in which they operate. Sir Bessemer would undoubtedly be astonished by how far the industry has come to date and amazed to see where it is heading.
JIM MORTON is vice president of operations at National Tube Supply, University Park, Illinois, nationaltubesupply.com.
