An increasing number of steel product companies are now discovering the advantages of SSG Product Database. SSAB Oxelösund now joins Outokumpu Stainless and Sandvik in this collaborative undertaking.
SSAB Oxelösund, where they have been making iron and steel since 1914, is the world’s leading producer of quenched and tempered steel, which is heavy plate with extra high strength and good welding properties combined with high wear resistance and good workability.
The company’s products – Hardox, Weldox, Armox and Toolox – are sold all over the world and used, for example, in construction and mining equipment.
SSAB Oxelösund produces a total of 1,394,000 tonnes of slab and 600,000 tonnes of heavy plate annually and sales in 2006 amounted to almost SEK 10 billion, with an operating profit of SEK 2.2 billion. The number of employees was 2,785 which makes the company the region’s largest employer.
The profit margins are good and with the new tempering plant, taken into operation in 2001, the growth for the company’s core niche products has amounted to an average of more than 15 percent annually.
Earlier system
This growth has also demanded updating and modernization of the company’s warehousing system. The warehouse holds 28,000 items and is extra-large because it serves all units at SSAB Oxelösund, everything from the process operations to the engineering workshop.
“The warehousing system we’ve used to date was built in the 1970s with the catalogue structure in use at the time. There is nothing wrong with the system, as such, but after 40 years there was a need to modernize,” says Maria Göransdotter, purchasing section manager at SSAB Oxelösund.
Consequently, SSAB Oxelösund has decided to join SSG Product Database.
Set targets
“It is an efficient and well-functioning system with a good item structure and modern working method. The reason for the changeover was that we wanted better order and clarity. We want to ensure that classification is done according to the same template everywhere and we are also making efforts to purge the stock to reduce the number of items. The goal is to be able to cut capital tied-up in supplies and thereby also reduce operating costs by being more efficient,” says Kjell Barkefors, controller in the purchasing department at SSAB Oxelösund, before adding:
“Another major benefit of the collaboration is the opportunity to identify other supply solutions, i.e. we get spare part support from the other member companies if we happen to suffer a breakdown.”
Starting with Oxelösund
If the results are as expected then it is possible that the SSAB Group’s other enterprises – SSAB Tunnplåt, Plannja and Tibnor – will also join the system.
“We’re starting the modernization process in Oxelösund, but we’re taking an overall approach to increase coordination within the corporate group,” says Maria Göransdotter before concluding:
“We’ve adopted a comprehensive strategy that involves rebuilding the warehouse with a new layout, new workstations and new computer support.”
SSAB today is the world’s leading producer of quenched and tempered steel.