April 3rd, 2023

There are many benefits of strategic sourcing that organizations may take advantage of.  Strategic sourcing is a supply chain management process in which organizations align their purchasing power with business strategies; taking account of factors such as contract negotiation, supplier development, and outsourcing models.

The value of strategic sourcing is apparent when you consider the following key benefits:

  • A boost in long-term supplier relationships
  • Gained efficiency and implementation of systematic supply processes
  • Reduction in direct and indirect costs, and mitigated supplier risk. Steel is an important input for several industries
  • Taking advantage of the many players within the steel production industry can have a positive impact for many companies.

Teaming with a Steel Service Center

One way to implement an effective sourcing strategy is through working in unison with a steel service center, many of whom specialize in procurement. Steel service centers offer a unique advantage to those companies that do not have sufficient supply operations in place. At ECONSTEEL Supply, we pride ourselves in our outstanding industry knowledge, as well as an intricate network of supplier relationships. It is imperative for organizations in the steel industry to develop reliable relationships with their suppliers, and having quality supplier relationships will result in numerous benefits for that organization.

Steel service centers offer the ability to buy directly from the mills that produce the steel. Often, certain quantities are required for an order to be placed directly from the mill, and many end users do not require that amount. Utilizing steel service centers allow companies to keep inventory costs low, as well as limits the amount of expertise required within their own procurement operations. 

ECONSTEEL has worked on developing our sourcing strategies for over 100 years and is eager to show how this knowledge and experience can benefit each one of our customers.


Please see our other blog titled "Steel Mills vs. Steel Services Centers" to find out more about the operations of a steel service center and the benefits it offers organizations.

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