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Raw Material Price Volatility & Supply Disruption Mitigation in Steel Fabrication

A heavy industrial equipment manufacturer consuming over 100,000 tons of structural steel plate and alloy tubing annually across four fabrication facilities.

Runs onPurti
gross margin preserved across steel-intensive customer contracts
$1.8Mgross margin preserved across steel-intensive customer contracts

How the work runs

The pressure that made this worth automating, the steps the system runs, and what came out the other side.

Pressure & Trigger Points

  • Sudden trade tariff announcements and raw material refinery outages triggered a 30% spike in steel spot prices and 6-week delivery delays.
  • Procurement teams awarded purchase orders based on legacy static lead times, causing unexpected raw material shortages.
  • Fixed-price customer equipment contracts suffered severe gross margin erosion due to unbudgeted material price spikes.

The run · 5 operational steps

Click any step to inspect telemetry signals, model reasoning, and governance gates.

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1

Commodity & Supply Risk Intelligence

Purti monitors global steel mill capacity, trade policy updates, scrap metal spot prices, and energy cost signals.

Input Signal:

Real-time operational telemetry & queue

Reasoning Pattern:

MCP grounded vector inference

Governance Gate:

Policy constrained with audit write-back

Verified Business Outcomes

  • $1.8M in gross margin preserved across steel-intensive customer contracts.
  • Avoided a 6-week factory shutdown by re-allocating raw material inventory between internal plants.
  • Procurement team gained a 14-day jump on competitor buying before spot price surges took effect.

Capabilities this relies on

  • forecasting
  • system connectors
  • scenario simulation
  • alert routing
  • risk scoring

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