“ The Just in Time paradigm is a distinct third model that allows customers to place orders closer to their‘ need date’. Both the trading and manufacturing sides of our business revolve around this third model.”
Spotlight On... CORROSION RESISTANT ALLOYS
Corrosion Resistant Alloys: Quality, Reliability, and Speed Just in Time
Corrosion Resistant Alloys( CRA) is the only API 5CRA mill in North America that manufactures super duplex and nickel alloys. Since the company’ s inception in 2002, it has evolved through iteration, experience, and changing markets to establish itself as an agile alternative to traditional manufacturing and supply chain practices. The agility CRA’ s Just in Time methodology provides succinctly benefits its customers and the company’ s objective to build partnerships.
Stainless Steel World Americas had the pleasure of speaking with Cole Patchell, President of Corrosion Resistant Alloys, to discuss the company’ s Just in Time business model, choosing partnerships over competition, and its unique outer diameter( OD) capabilities.
By Kristen Charles, Stainless Steel World Americas
Corrosion Resistant Alloys( CRA) succeeds where other businesses have failed. By staring down challenges and owning past oversights, the company has evolved into a business where flexibility permeates the company’ s entire infrastructure. Cole Patchell took over as president from his father, CRA’ s founder John Patchell, almost two years ago, and he is continuing to steer the company towards further growth.“ When we started, we were brokering material from various mills and acting as a middle facilitator in the business, but as time evolved, we went from being a trading house to embodying a distribution-type model.” Fast forward to 2025 and the company supports two pillars: the manufacturing side of the company and the trading side of the company.
The Evolution of Just in Time
Large inventory buildups were part of CRA’ s initial business model as a byproduct of the company’ s position in the supply chain. Standard mills have long lead times on deliveries, and orders need to be placed as much as a year in advance, sometimes more. Distribution requires the adoption of a speculative position on inventory; however, CRA identified that needs are always changing.“ We would receive the supply only to discover it is obsolete or there is a new trend in the industry,” said Patchell.“ The Just in Time paradigm is a distinct third model that allows customers to place orders closer to their‘ need date’. Both the trading and manufacturing sides of our business revolve around this third model.” Just in Time has reduced CRA’ s necessary inventory purchases. The company is now better prepared to navigate geopolitical or other market uncertainties, and it has been able to apply processes that are more efficient than traditional distribution practices.
Despite CRA’ s change in business model, it firmly believes there is a strong need for standard mills and distribution.“ Our purpose is not to displace or take away business from these other mills. Our Just in Time space is where we want to reside. It is not our intention to creep into some of these other areas. From an equipment and capability perspective, we want to remain in our niche.”
Technology and Logistics
Technology is integral to the Just in Time process, which is less about the actual equipment and more about the logistics. Traditional mills do not melt until they receive an order; CRA begins the process before it receives an order, so the company holds semi-finished inventory all the time.“ It is a risk and there have been instances where we have miscalculated,” acknowledged Patchell.“ But it means we do not have to try and anticipate what sizes will be needed. It allows us to move into other industry segments in addition to oil and gas, such as aerospace, Department of Defense, chemical processing, or waste disposal. This approach coupled with our intentionality on maintaining reserved capacity for quick needs allows us the flexibility we need at the most critical points in production.”
Actuals Versus Forecasts
CRA reached a turning point once it accepted the ineffectiveness of maintaining an infrastructure based on predicting an outcome over which it has no control. Distribution requires anticipation of future needs for an unpredictable future, and the Just in Time model provides the dexterity needed to weather an uncertain future. In the past, CRA conducted analysis and received forecasts from key customers, but the predictions, no matter how thoroughly researched, were often flawed. Instead
“ The Just in Time paradigm is a distinct third model that allows customers to place orders closer to their‘ need date’. Both the trading and manufacturing sides of our business revolve around this third model.”
2 Stainless Steel World Americas- April 2025 | www. ssw-americas. com
SSWAM april 2025. indd 2 23-04-2025 17:26