Gone in 60 Seconds: The Metals Market Moves Online

Industrial sectors have been feeling the weight of a slow-moving, high-friction procurement process for decades. Endless supplier coordination, manual paperwork, lengthy wait times, and the countless resources spent sunk in back-and-forths with salespeople have turned what should be simple transactions into logistical nightmares for businesses.

Take metal distribution and wholesaling. It’s a $270 billion business, and for metal distributors the complexity of managing inventory, negotiating contracts, ensuring quality compliance, and handling logistics has resulted in lengthy, error-prone procurement cycles.

For this sector, automated processes and digital payments represents efficiency. That efficiency can help firms capture new growth – and it’s a welcome change compared to another text message with a request for a phone call from a supplier.

For B2B Payments Month 2024, PYMNTS’ Karen Webster discussed the present and future digital prospects of the metals industry with Shep Hickey, CEO at metal digital marketplace Bryzos, Ryan Ayesh, president at supplier Metal Pros, and Jason Koller, director of sales at steel supplier ANCO Steel.

“The metals space is not the first thing to be thought of when digital is being discussed, and the first thing I like to do is challenge that thinking,” Bryzos’ Hickey said. “Because if you go out in any fabrication warehouse or fulfillment center, there’s technology all over the place. Digital clearly represents value to these businesses.”

Gone in 60 Seconds, Without a Salesperson

For industries like metal distribution, digital innovation offers a pathway to overcoming the high friction and inefficiencies traditionally associated with procurement. The three panelists agreed that a focus on simplicity, speed and user control for both buyers and suppliers is where the greatest digital transformation is likely to happen within metals procurement.

Metal distributors often engage with multiple vendors globally, each offering varied products and services. Managing vendor relationships, pricing, contracts and compliance becomes a complex task that is time-consuming and error-prone when done manually.

For Hickey, the chaos produced an idea that he felt would bring order. He started Bryzos not just as another marketplace, but as a platform designed to eliminate inefficiencies and reduce the number of interactions buyers need to make.

“The fewer salespeople you need to talk to, the more efficient the system becomes for everyone,” Hickey said. In fact, Hickey’s ideal is an invoice-to-match procurement process that is “gone in 60 seconds.”

Metal Pros is one of the companies Bryzos was built for. It bills itself as a “small quantity” metal shop that stocks products from aluminum to steel to copper and more. Metal Pros’ Ayesh echoed Hickey’s comment around speed and simplicity. He noted that Bryzos’ ability to consolidate orders and match suppliers eliminates the need for repeated interactions with sales representatives — a godsend for buyers.

“The platform takes all that middle work off my plate and allows me to do what I set out to do, which is just buy some steel,” he said.

ANCO is a bigger company, specializing in steel after growing up, as its site says, as a “cottage industry.” As Koller told Webster, the convenience of metals buying platforms influences how sales processes are managed within the metals industry.

By enabling transactions outside of traditional business hours, Bryzos allows suppliers to capture sales opportunities that would have previously required more manual effort. This efficiency has, in turn, reshaped how businesses think about their sales organizations, creating opportunities for reallocation of time and resources rather than job displacement.

Price Transparency, With Limits

One of the key challenges in building the digital platform, Hickey explained, was developing a system that catered to the distinct needs of both buyers and sellers. Unlike traditional marketplaces, where all inventory is online for anyone to see, Bryzos has engineered its platform so that suppliers can selectively bid on requests for products they already have in inventory and at prices they find suitable. This model allows sellers to control their exposure and pricing without revealing all their cards upfront.

ANCO’s Koller praised this flexibility. “It puts the power in our hands. We get to see what’s out there, bid on what matches our inventory, and set the terms. It’s a safe space for suppliers,” he said. This flexibility is critical in a commodity-driven industry where pricing and availability can be volatile, enabling suppliers to stay agile.

Instead of knocking on doors and hoping someone needs their product, suppliers can see exactly what opportunities align with their business in real time. “As opposed to constantly knocking on doors and saying, ‘Maybe they buy what I sell,’ in this case, I can see it up front and say, ‘This is a good fit for me,’” Koller added.

The Business Model

Bryzos operates on a spread model, earning revenue from the difference between buy and sell prices. This approach aligns with the platform’s goal of adding value without being perceived as exploitative. As the marketplace expands, Hickey mentioned the potential for subscription models, particularly if the platform integrates with APIs and offers more advanced functionalities.

Looking forward, Hickey believes Bryzos represents the “kernel of the future” for digital trade in metals. The platform’s efficiency, transparency and trustworthiness provide a solid foundation for what digital procurement can achieve.

Meaning leaders in the metals distribution space can put stop texting and get back to what really matters — growing the business.

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