metals and manufacturing supply chain Archives - National Material Company

Why Sourcing Matters in Metal Processing

jane2025-02-06T15:17:12+00:00February 6th, 2025|News Blog, NMC Media|

Key Takeaways

Strategic Sourcing Drives Success: Reliable sourcing ensures high-quality materials, cost efficiency, and operational stability in metal processing, enabling businesses to stay competitive.
Sustainability is Essential: Partnerships like NMC and Greenway Steel showcase how transparency and emissions tracking create a more sustainable and eco-conscious supply chain.
NMC Leads the Way: With decades of expertise, advanced tools, and a commitment to excellence, National Material Company sets the standard for quality, reliability, and innovation in metal sourcing.

In an industry as demanding and complex as metal processing, sourcing high-quality materials isn’t just a priority—it’s a necessity. The right sourcing decisions can make or break operational efficiency and product integrity, from quality steel to specialized aluminum alloys.

Ensuring material quality, cost efficiency, and reliability is no easy feat. Inconsistent quality, supply disruptions, and price volatility can lead to downstream production challenges, impacting everything from manufacturing timelines to finished product performance. A strategic sourcing approach minimizes risks, enhances competitiveness, and ensures top-tier materials, enabling companies to maintain high-quality standards across their operations.

The Challenges of Sourcing in Metal Processing

Precision in metal processing depends on effective sourcing, yet companies face significant challenges when procuring materials like steel and aluminum:

1. Quality Inconsistencies:

Variability in material properties, such as tensile strength or alloy composition, can jeopardize manufactured components’ structural integrity and lifespan. Consistency is crucial in quality steel and aluminum, as any fluctuation can disrupt production and affect product performance.

2. Supply Chain Disruptions:

The global steel, metals and manufacturing supply chain has been significantly strained, especially in recent years. Natural disasters, geopolitical issues, and pandemics can disrupt the flow of raw materials, making it difficult for companies to keep production on track.

3. Cost Fluctuations:

Prices for steel, aluminum, and other metals are volatile and impacted by global demand, tariffs, and market instability. Effective sourcing must factor in cost control strategies to prevent budget overruns, particularly in a highly competitive market.

4. Sustainability and Compliance:

Meeting industry sustainability standards, like those outlined by the GHG Protocol, is increasingly important. Companies are pressured to source responsibly, focus on eco-friendly materials, and reduce their carbon footprint throughout the supply chain.

5. Supplier Reliability:

Ensuring that suppliers are reliable, with robust quality control and transparency, is a constant concern. For example, a lack of clear communication and standardized practices can lead to costly mistakes that affect downstream processes.

These challenges influence more than procurement—they […]

How Transparency Drives Sustainable Supply Chains in the Metals Industry

maria2025-03-08T00:59:22+00:00January 9th, 2025|News Blog|

Key Takeaways Transparency drives sustainability: Transparency builds trust with stakeholders, meets regulatory requirements, and drives sustainability in the metals industry. Leveraging advanced technology: The Greenway Calculator simplifies carbon footprint calculations by focusing on emissions intensity, offering actionable insights for optimizing supply chains. Collaboration for a greener future: NMC’s partnership with Greenway Steel demonstrates the value of collaboration in creating sustainable supply chains in metals.

In today’s global metals industry, sustainable supply chains in metals are no longer a lofty aspiration — they are a business imperative. Regulatory agencies, customers, and financial stakeholders are increasingly pressuring companies to reduce their carbon footprints and decarbonize supply chains. But how do organizations in metals and manufacturing, such as National Material Company (NMC) and Greenway Steel lead the way in this transformation? The answer to sustainable supply chain in metals and manufacturing result from transparency.

Transparency is the cornerstone of sustainable supply chains in metals, enabling companies to accurately track carbon emissions in alignment with the GHG (greenhouse gas) Protocol. This data-driven approach empowers businesses to meet their sustainability goals while ensuring accountability. By openly sharing information about raw material sources, production processes, and logistics, companies can reduce environmental impact and foster trust.

Addressing the Challenge: Transparency and Accountability

Calculating the carbon footprint of a global steel and aluminum supply chain is no small feat. The GHG Protocol requires companies to calculate direct and indirect emissions, known as scopes 1, 2, and 3. Scope 3 emissions, which encompass upstream raw material extraction, downstream transportation, and product use, pose the greatest challenge due to their complexity and breadth. Yet, identifying and managing these emissions is critical — not only to meet regulatory requirements but also to satisfy growing consumer demand for greener, more sustainable products.

As a recognized leader in steel processing and metal supply chain management, National Material Company (NMC) faced this challenge head-on. A key automotive customer sought to understand its entire supply chain’s carbon footprint. Given the global nature of the supply chain — with steel and aluminum parts sourced and processed worldwide — NMC collaborated with Greenway Steel to deliver a transparent, data-driven solution.

Case Study: NMC and Greenway Steel’s Collaborative Approach

NMC and Greenway Steel joined forces to tackle the challenge of calculating a complete value chain carbon footprint. By leveraging Greenway Steel’s proprietary Greenway Calculator and NMC’s expertise in steel processing, they systematically assessed the carbon intensity at each stage of the supply chain.

The first step involved calculating direct emissions, scopes 1 and 2, associated with the energy consumed during metal processing. By determining the energy intensity of their operations, NMC could accurately estimate the emissions generated per unit of steel processed. Using standard emission factors, they could then calculate the direct carbon footprint of their steel production.

Image Attribution: https://greenwaysteel.com/

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