How to select a steel supplier

Look for a supplier that can offer more than just product

Good steel suppliers are partners in the manufacturing process and can help you to select the right material for the job. Photo courtesy of Bohler.

Manufacturers that buy tool steel typically want three things: reliability, good performance, and consistency.

Tool steel of consistent quality is extremely important. Toolmakers, for example, need to know that the steel grades they purchase react, machine, and heat-treat consistently every time. Inconsistencies mean lost time, and today time is a commodity; it is very limited and cannot be recovered.

If the steel has defects, such as cracks or inclusions, that you do not recognize before the material is processed, it means you have invested valuable shop time into something you cannot sell and, again, lost time and money.

If the material has hard spots, it is not homogenous, and you may experience an increase in processing time and have to invest in more tooling to complete the job. This situation typically is unexpected and unaccounted for when a tool shop bids for a job, and it usually translates into higher tooling costs that in turn affect profit margins.

Post-processing work such as polishing, etching, and coating also can be affected if the material isn’t of consistent quality.

Look for new steels

New grades of steel are constantly being released that can offer consistency and reliability too.

Now many of the commodity grades that have been offered in the market for many years can be replaced with new and improved versions or with new patented steel grades that have been developed to meet the demanding needs of the manufacturing industry of today.

We can modify and manufacture steel grades that we couldn’t have even imagined 20 years ago.

Traceability is important

Traceability is extremely important whether it’s in the aerospace, automotive, or even the food industry. If a problem is uncovered after the product has been shipped to a customer, it is important to be able to trace where the product has been shipped and who could potentially be affected.

When it comes to tool steel products, each batch of steel grade produced is called a heat, and each heat is assigned a heat number that is roll marked on the product itself. Each batch of steel comes with a material test certificate that provides information regarding the chemistry of the material, heat-treatment condition, and hardness. Your steel supplier should take great care in its processes to ensure material traceability from the first steps in mill production to warehouse organization.

More than a supplier

Many steel suppliers are just exactly that – only a supplier. Although there are many reputable suppliers in the marketplace, few can offer technical advice or even application knowledge for the challenges many manufacturers face today.

Look for a steel supplier that has the ability to provide a complete solution to the problem and work with you to identify the manufacturing challenges you have. These suppliers are partners in the manufacturing process and can help you to select the right material for the job, select the correct heat-treatment process, and even offer a coating service.

Good steel suppliers offer a range of tool steel grades that, along with heat treatment, coatings, and machining services, give you the option to improve tool build lead time on top of material performance.

Look for a partner that can consult with you to address downstream operations and final application performance, not just supply a steel grade that meets a minimum standard. A trusted steel supplier is prepared to have in-depth discussions with you to provide various suggestions and help you make the right decision for materials and technical services, rather than suggest the easiest or cheapest option.

The Big 3

Most manufacturers’ concerns about their tool steel supply usually fit into one of three categories: price, quality, and availability.

Price. This always is the No. 1 concern from most manufacturers, and rightfully so. Many toolmakers, for example, ask for a quotation on a job using standard commodity products. If changes are made during a project, the additional cost is always a concern if other steels are required.

However, price can be looked at in two ways: by raw material price or by overall price of the part being manufactured based on production performance. A good steel supplier will help you understand the long-term performance gains made possible by choosing the right materials and services.

Quality. Manufacturers often sacrifice quality for a cheaper price. This is not the right approach, because when it comes to the overall cost of production, raw material represents only a small percentage of the total cost.

Availability. Stock availability also is key for manufacturers ordering material. Lead times on builds are shorter than they have ever been, and you cannot afford to wait too long for the delivery of your raw materials.

Therefore, it is very important that you form a partnership with your suppliers so they become an integral part of your supply chain so that communication of your upcoming needs is seamless and accurate, resulting in minimal disruption to inventory. This critical feedback from you gives steelmakers the necessary detail to include in expansion plans at the mill and service distribution level.

One last item that often gets overlooked is credit.

Credit terms can be a concern for many steel users because, in many cases, they do not get paid in full for a build until after production. For example, the production part approval process (PPAP) that toolmakers must go through can take anywhere from six months to one year after a project is kicked off. And only after that time will they get paid for their work.

It is very important that all key stakeholders, from OEMs to suppliers, are working together to keep payments circulating so that disruptions to service, inventories, manufacturing, and production do not occur.

Although tool steel selection can sometimes be taken for granted, it is a critical factor in successful manufacturing.

Rick Bertone is sales manager, Bohler Canada, www.bohler.com.