Steel Warehouse Company International Division

Seven Weeks from Start of Project to Business Success Leveraging SAP

Dell Services and SAP spent 10 years refining an out-of-the box software solution tailored to primary metals companies, metals fabricators, service centers and industrial equipment companies. This provided the foundation for a robust Software As A Service (SaaS) solution for Steel Warehouse that delivered greater reliability, visibility, and support for business growth.

According to Steel Warehouse CIO, Kevin Clinton, “Timely implementation and a cost stream closely associated with resulting benefits certainly made this cross-functional solution easier to digest than a traditional ERP based change program. The Dell Services team was first class from start to finish.”

The Challenge

The Steel Warehouse Company International Division (SWI) uses internal and third-party manufacturing and logistics, and freight forwarders to quote, sell, manufacture, and service a range of market leading ferrous sheet and plate metal products to an international set of customers. SWI required rapid and cost-effective implementation of standard processes in a centralized system to support top customer service in this expanding strategic business unit. A strong entrepreneurial “can do” attitude supported the start-up and initial success of the unit. The next phase of growth required a move to standard systems and processes along with improved timely visibility of information. Limited personnel in the division, an industry with tight profit margins, and the 2009 economic downturn made it imperative to find a system solution with a depth of functionality in needed areas, minimal front-end costs, a start-up model that efficiently utilized limited time of division personnel, and an ongoing cost and benefit model that fit the profit model for the business.

The Solution

There were many factors that contributed to project success, including the experience and skill sets that our team delivered along with a deep commitment from client management. There were several solution highlights:

Pre-Built Software

Dell Services and SAP provided a software solution pre-tailored to metals companies and the specific metals fabrication and distribution needs of SWI. The application software portion of the solution is built on SAP’s Mill Products All-In-One solution. The solution includes 10 years of best practice-tailoring from our company provided through SAP’s solution refinement tools.

On Demand IT Environment

We provided a cloud computing environment that fully supported rapid implementation start-up along with dependable production hosting of solutions.

Accelerated Timeframe

The solution was implemented from initial concept to go-live in only 7 weeks (enterprise implementations are typically measured in months). Company master data was placed into the pre-built hosted solution in the first 5 weeks, and entry of quotes and sales orders from daily operations began 6 weeks after the program launched. Key SWI users were leading the walk-through of in-scope processes in the fifth week of the program.

Usage-Oriented Solution Pricing Model

Our payment-for-usage billing model offers low up-front costs and the ability to grow and scale as needed.

Experienced Coaches

Our team includes a group of solution start-up resources with deep industry best practice knowledge along with SAP and people change experience.

Focus and Commitment

Steel Warehouse provided an engaged management and user team committed to supplying a clear and rapid vision of solution needs. The team also provided focused time when needed to put required company data into the solution and prepare key users.

The Results

Seven weeks from the start of activity, SWI moved to a full standard set of business processes and a standard integrated software system with one timely data source.

Benefit Highlights:

• Standardized business processes
• Established one source of information and metrics
• Improved visibility into order and production status
• Reduced risk of processing and supply chain errors
• Provided a flexible platform to support growth
• Delivered rapid payback with low front-end investment along with accelerated time-to-value

“The SaaS (Software As A Service) metals solution offering from Dell Services and SAP has exceeded our expectations with a good fit to support our business, rapid implementation timing, lower front-end costs, and lower overall costs that fit within the business model for this division,” according to Marc Lerman, President of Steel Warehouse International.

The Future

During the 7-week initiative, SWI ramped up three inside sales and plant integration associates, a lead sales associate and a lead IT associate to effectively use the solution. Other associates will be brought onto the solution as the business expands and opportunities arise.

The platform offers additional functionality in many areas to support new SWI business needs.

Solution scope includes one integrated system for:

• Metals quote capture
• Metals sales order capture and management
• Coordination of required production from several internal divisions using a variety of processes and systems
• Coordination of 3PL transportation and staging activities for international shipments
• Coordination of freight forwarders providing export activities and international logistics
• Billing and collections
• Returns management
• Basic claims management
• Credit management, including LOC
• Management of customer consignment programs
• Material traceability and documentation coordination
• Auto financial account posting within SWI
• User set up of new customers, materials, and suppliers as needed