Raw Material Price Volatility & Supply Disruption Mitigation in Steel Fabrication
A heavy industrial equipment manufacturer consuming over 100,000 tons of structural steel plate and alloy tubing annually across four fabrication facilities.
Run on Purti · Supply Chain Resilience
The challenge
Sudden trade tariff announcements and raw material refinery outages triggered a 30% spike in steel spot prices and 6-week delivery delays.
Procurement teams awarded purchase orders based on legacy static lead times, causing unexpected raw material shortages.
Fixed-price customer equipment contracts suffered severe gross margin erosion due to unbudgeted material price spikes.
How Purti solves it
Commodity & Supply Risk Intelligence
Purti monitors global steel mill capacity, trade policy updates, scrap metal spot prices, and energy cost signals.
Automated Margin Exposure Analysis
Maps raw material price spikes against active BOM requirements, calculating exact margin risk across 150 active customer orders.
Ready-to-Commit Purchasing Optimization
Recommends optimal purchasing timing, advising procurement to lock in forward supply contracts before predicted price surges hit.
Inter-Factory Material Re-Allocation
Identifies surplus structural steel inventory in Plant B and re-routes material to Plant A to cover short-term shortages.
Alternative Material Specification Matching
Cross-references engineering specs to suggest qualified alternate steel grades available from local stockists.
The outcome
- gross margin preserved across steel-intensive customer contracts
- $0Mgross margin preserved across steel-intensive customer contracts
$1.8M in gross margin preserved across steel-intensive customer contracts.
Avoided a 6-week factory shutdown by re-allocating raw material inventory between internal plants.
Procurement team gained a 14-day jump on competitor buying before spot price surges took effect.
Representative scenario: a modelled industry situation showing how this accelerator applies. Figures are projections, not a named client result.
Capabilities used
Every accelerator is assembled from the same capability layer, so a workflow you adopt here shares its foundation with the rest of the portfolio.
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