What is a service center?
- A service center is a provider of value added services, for both the mills and end-users. Some of these services include: strategic supply purchases and sourcing, maintaining inventories that allow customers just-in-time delivery, additional processing to produce desired product specifications, and distributing customized products.
How they affect the market?
- Service centers move and process product throughout the supply chain. By placing order with mills to build up their own inventories, they stimulate the market. For their customers, service centers act as an important service provider. In normal market conditions, their inventories can prove to be a valuable asset for both spot and contract buys. In today’s market, the role of a service center is more important than ever. Service centers continue to place orders with the mills and manage inventories for their customers so that steel remains available during this tight supply market.
What should you do?
- Work with your service center representatives to manage your steel purchases in sustainable ways. Majestic Steel offers a variety of tools to keep our customers informed to help them make the best decisions for their business. Majestic’s MHub and MICS are two of our digital suite offerings, designed to provide our customers with real-time inventory management and tracking tools.