Introduction
Reliance Steel & Aluminum Co. is a metal distributor that operates under three business models. The company has a commercial model, an industrial model and a service center model. In this article, I’ll break down each of these models and how they differ from one another.
Reliance is a metal distributor that operates under three business models.
Reliance is a metal distributor that operates under three business models. The first model, the “traditional” model, represents the bulk of Reliance’s business and serves two customer segments: manufacturers and end users (also known as consumers). In this model, Reliance purchases metal from suppliers at a discount and keeps them in inventory until it can sell that metal on to one of its customers.
The second model is called the “wholesale/retail” model. Here Reliance sells to small businesses looking for larger quantities of recycled metals than what they would need if they were buying it from an individual retailer or manufacturer. This helps these smaller companies get access to materials without having to go through the trouble of dealing with multiple suppliers or transport costs associated with transporting their own materials back and forth between many different locations around town; this way they can streamline their operations by reducing overhead expenses related solely towards refining raw materials bought through wholesale distributors like Reliance instead.[1]
Business Model #1 is a commercial model that makes direct sales to industrial end-users, machine shops and fabricators.
Reliance Steel & Aluminum is a metal distributor that operates under three business models. The first model is a commercial model that makes direct sales to industrial end-users, machine shops and fabricators. This commercial model can be further segmented into the following six operations:
- Reliance Manufacturing Company (RMC)-A manufacturer of structural steel shapes and beams from hot rolled and cold finished carbon steel products located in Chicago, Illinois.
- Reliance Metals Kansas City-A custom processor of carbon steel pipe for underground utility applications located in Kansas City, Missouri. For more information on these two facilities click here or contact your Reliance sales representative today at 1-800-441-9400.
Business Model #2 is an industrial model that relies on manufacturing facilities and internal warehouse and distribution networks.
Business Model #2 is an industrial model that relies on manufacturing facilities and internal warehouse and distribution networks. In this model, Reliance provides steel products directly to end-users who are machine shops, fabricators and other industrial companies.
Reliance uses Business Model #2 to serve metal stamping shops, construction contractors and other industrial customers who require a broad range of metal products. This business strategy has enabled Reliance to become the largest supplier of cold-rolled steel in the United States with its own mill in Burns Harbor, Indiana.
The company’s third business strategy is called Quick Ship® (QS) which allows customers to receive their orders within 24 hours after they’ve been placed online or over the phone.
Business Model #3 is a service center model that relies on mill warehouses and distribution centers.
Reliance is a metal distributor that operates under three business models.
- Business Model #1 is a commercial model that makes direct sales to industrial end-users, machine shops and fabricators.
- Business Model #2 is an industrial model that relies on manufacturing facilities and internal warehouse and distribution networks.
- Business Model #3 is a service center model that relies on mill warehouses and distribution centers.
Reliance uses three distinct models to serve three distinct customer segments.
Reliance Steel & Aluminum Corp. uses three distinct models to serve three distinct customer segments. The first is a commercial model that makes direct sales to industrial end-users, machine shops and fabricators. The second is an architectural model that wholesales products for architects, contractors and specifiers. The third business model serves installation contractors who purchase products from the company’s distributor network partners in order to complete construction projects for their clients.
Conclusion
Together, these three models allow Reliance to serve many different customers. And that’s why we love them!
