Analysis Of Halloran Metals And Allied Steel

1160 WordsMay 4, 20165 Pages
Halloran metals and Allied Steel are the two dominant players of the steel service industry in the North East US over the last two decades. Halloran’s value proposition to customers was a breadth of steel products that could be delivered in a single day. The purchasing of steel from integrated steel mills was handled centrally at Lynn facility. Halloran had strategically located warehouses in seven different regions connected by a shuttle service, thereby enabling multiple product lines and reducing the inventory risks. Warehouse managers had the authority to decide the customer demand at their respective areas. In addition to the shuttle service, Halloran has a fleet of trucks for handling the logistics. This in turn gives it a competitive edge in terms of wide customer reach and single day delivery time. Halloran catered to all kinds of customers irrespective of order sizes and enjoyed high margins by maintaining high inventory levels and delivering superior service. Halloran did not, however, limit its opportunities to high-service, low-volume business as their operation strategy focused on market positioning and retaining a large loyal customer base. On the other hand, Allied’s operating strategy focused on intermediate processing and huge volume customer orders. Allied acted as a one-stop steel service center: one large warehouse (six times bigger than Halloran’s largest warehouse) that stored both the inventory and the processing equipment, and hence incurred lower

More about Analysis Of Halloran Metals And Allied Steel

Open Document