Customer Profile
A North American manufacturer serving heavy equipment and construction markets. The customer requires specialized plate grades, including abrasion-resistant, high-strength and thick – or “heavy” – plate products.
Challenge
Leeco’s customer historically benefitted from a “hold for release” supply strategy, which required quarterly demand forecasting. During a period of high demand, Leeco’s customer struggled to accurately forecast their steel requirements. As a result, they experienced:
- Material shortages that threatened production schedules
- Extended lead times for specialized grades and sizes
- Increased costs from last-minute purchasing
- Limited access to inventory during periods of high demand
Solution
Leeco Steel used market knowledge and sourcing expertise to implement several key solutions for this customer over the course of several quarters.
Market-Informed Forecast
Using the customer’s historical plate consumption and key market indicators, the customer’s account manager shared information, knowledge and structural recommendations that the customer could use internally to develop a data-driven forecast.
Customized Hold for Release (HFR) Program
Based on the customer’s revised market-informed forecast, Leeco evaluated inventory and lead times at multiple facilities and developed a customized HFR program. A key strategy was to stock the material in locations that could most efficiently deliver to the customer’s production facility.
Program and Forecasting Monitoring
The customer’s account manager regularly evaluated the HFR program against the customer’s forecast and provided feedback to help improve the next quarter’s forecast. The customer received monthly consumption reports and market data throughout the quarter for a fully transparent snapshot of their program.
Results
Why It Worked
Successful forecasting is not about predicting every order perfectly. It's about creating enough visibility to make informed inventory decisions before challenges arise.
By combining customer forecasts, historical usage patterns, inventory intelligence and proactive planning, Leeco helped its customer maintain production schedules, secure critical material and confidently support future growth.
