Forecast Annual Usage Requirements
Purchasing material based on monthly, quarterly, or annual usage requirements secures fixed costs.
With strut and fittings prices rising monthly due to steel shortages, holding more material insulates your company from the volatility in the metals market. The increased carrying costs associated with more inventory will be more than likely offset by fewer spot buys in today’s turbulent market.
Analyze Freight Costs
Steel isn’t the only raw material seeing rocketing prices throughout 2021. Rising fuel costs, driver shortages, and overwhelmed transportation hubs and ports have led to dramatic spikes in freight costs. We’ve seen an increasing number of LTL freight carriers refusing to transport material over 12 feet in our business.
To combat rising freight costs, be sure to ask your account representative if your quoted material meets the weight requirements (7,500 lbs for channel & 2,500 lbs for fittings) to qualify for free shipping from the mill.
Even if your order size doesn’t qualify for our freight allowed program, we can still significantly reduce your freight charges by cutting your channel order to custom lengths.
Leveraging our cut-to-length capabilities not only reduces freight charges but also means your material requires no additional processing when it hits the dock.
Unistrut Service Company still offers free shipping on channel nuts, fittings, and hardware for online orders of$35.00 or more despite rising freight costs. Free online shipping applies both to new and existing customers, so be sure to ask your account representative for details to stretch your budget further.
Rising strut and fittings prices will be with us until mill capacity increases, and steel coil prices stabilize. Still, utilizing some or all of the strategies outlined above, your company can successfully weather current metals market volatility. To read more about the supporting data behind these price increases, check out our blog regarding Covid-19 and Supply Chain Disruptions.
For further assistance or to learn more about how we can help control costs and improve your bottom line, contact Unistrut Service Company today!