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Delta Metals Case Study

Background

Delta Metals is a Memphis-based steel service center specializing in slitting and laser-flat leveling of carbon steel. The company buys steel in rolls, or coils, and processes it to sizes that are slit to width and/or cut to length per customers' specifications. With state of the art processing equipment, a large steel inventory and approximately 350,000 square feet of warehouse space, Delta Metals' dedicated and experienced personnel are committed to providing customers in Tennessee, Mississippi, Arkansas and Missouri with unequalled quality and service.

Fullen Dock & Warehouse is a full-service intermodal river terminal and warehousing facility located at Mile 740 of the lower Mississippi River, immediately north of Downtown Memphis. Founded in 1979 in Memphis, "America's Distribution Center," Fullen Dock is located near the junction of I-40 and I-55, with open access to four major rail lines.

Challenge

When Delta Metals began doing business with Fullen Dock almost 20 years ago, industry methods were different than they are today. Deliveries were slowed by a process requiring inventory to be received into a warehouse before arrangments could be made to truck the unloaded coils across town to their facility. Today, barge transportation costs throughout the business cycle have grown faster than truck freight costs, and rail transportation costs are higher and harder to unload than a truck.

Solution

Fullen Dock believed that temporarily warehousing steel that was off-loaded from a barge was an unncessary step that could be eliminated, so they invested in trucks and specialized trailers suited for steel coils. By doing this, they improved service and reduced costs for Delta Metals. Fullen Dock's business investment in these road transportation vehicles also allowed Delta Metals to avoid the high costs and difficulties of rail transportation.

Benefits

Although shipping and transportation costs are unavoidable for Delta Metals, Fullen Dock offers the most convenient and efficient services for their customer to remain successful. Functionally and geographically, Fullen Dock allows Delta Metals to better serve their clients and continue to grow.

Statement

"Fullen Dock is a reputable business partner, whom we can trust with handling our inventory. On individual items, our inventory turnover can occasionally take a year or more. Problems that might be created by mishandling our steel could therefore take a long time to become apparent, and could significantly impact the profitability of what is inherently a lean-margin business. Being able to trust the chain of custody of our inventory is extremely valuable to us, and that's exactly what Fullen Dock provides." – Darren Aghabeg, President, Delta Metals Co., Inc.

More Information

Fullen Dock & Warehouse – www.FullenDock.com, 800-467-7104

Delta Metals Co., Inc. – www.deltametals.com