For many companies in the oil and gas, waterworks, construction, industrial or network and telecom industries, getting a big project is an opportunity for a small company to grow and expand. This makes this first project critical, which is why the choice of steel pipe suppliers is particularly important on this first big job.
Once you have gone through the procurement process for a large project once, your team will have a better understanding of who to look for, among the steel pipe suppliers in your area. However, on that first contract, focusing in on the issues below and then considering the quoted price will be essential.
On-hand Inventory
Large projects mean large volume orders from steel pipe suppliers. Working with one supplier is preferred over trying to juggle multiple suppliers, orders, and deliveries. By using one supplier, there is also greater quality control on the pipe and also a better working relationship with the company.
Ask about on-hand or in-stock inventory. While you may not know what is needed for delivery with each order, understanding the current stock levels will help choose a high volume supplier.
Lead Time on Orders
When custom orders are required for specialized items, including pipes, valves, fittings or accessories, it is important to ask about lead time or turnaround time. The top suppliers work directly with manufacturers on these orders, often shipping directly from the manufacturer to the job to speed up the process.
Storage of Pipe On-site
In some cases, you may need to have Just-In-Time delivery of pipe due to limitations in storage at the project. If this is the case, find out if the company has experience in setting up these types of orders and what their on-time delivery rate is for this type of delivery option.
Once you have found out the answers to these questions from the steel pipe suppliers, compare prices. If you compare prices first it is very likely you will choose a company that carries limited stock, has long lead times and doesn’t offer any value-added services to make the job easier for your team.
