Nesting Software as a Profitability Tool - SigmaNEST

Since it opened its door for business 10 years ago, VeriForm Inc. has focused on not being the “business down the road” that provides their customers the best “guesstimate” on price, production time, and their own profitability.

“We don’t price by what we ‘feel’ is right, or estimate by feeling,” states Paul Rak, President of VeriForm. “You’d be surprised how many of our competitors quote this way. Our prices are based on firm data, actual cost of any scrap, actual time it takes to produce the part which is stored in our nesting software, SigmaNEST.”

VeriForm, which provides plasma and laser cutting, as well as punching, for parts needed in mining, forestry, transportation, agriculture, and even nuclear industries, had the goals of maintaining accurate inventory and producing accurate and profitable quotes from the beginning. When they were looking for software for their plasma machine, they found a nesting software solution that provided beneficial tools far beyond nesting, especially in data management.

The Best Nest

“SigmaNEST allows us to nest parts very close together and then some,” states Rak. He goes on to explain that they have had customers, who, after seeing the skeletons after they cut the plates, called back and asked how it was possible to nest the parts so closely and consistently. And customers wanting best pricing see that difference as well. For example, for a customer needing large orders of 38.5” arcs of 304 stainless steel throughout year, VeriForm was able to reduce their customer’s costs up to 15% by tightening the nests better than any competitor, and thus secured and maintained the business.

The Proof is in the Data

VeriForm points to the longevity of their customer base as one area of proof that maintaining accurate and detailed data helps in profitability. Knowing their customers’ detailed history of parts by saving and tracking part data ensures accuracy and consistency in quality with little or no surprises for their customers, even when comparing quotes to other manufacturers. Years’ worth of part variations and updates are stored within SigmaNEST, allowing continual reference to past parts and tracking modifications for whenever a customer needs to resurrect a part as it was years ago.

In addition, VeriForm’s persistence in managing part data becomes a strong marketing tool when working with customers in sensitive industries like nuclear power. Maintaining the heat number with all sheets, including remnants in inventory, allows them to help their customers maintain complete material records to ensure part integrity, and of course, ISO compliance. “Our customers know our quotes (by sight) because we are very specific and always consistent. The only change they see is attributable to the changing cost of materials,” states Rak.

More Time for Profit

SigmaNEST also provides an added plus in time savings for the VeriForm team. From the point the sheet is first entered as raw material, any size modifications resulting in a non-rectangular remnant is maintained, so there is never a need to manually resize or track. “At any given time we have detailed accounting of our inventory and we don’t place material orders until we look at the status in SigmaNEST,” says Rak. “This is especially important when it comes to specialty materials we need for some of our customers.”

The first year VeriForm tracked their material consumption and drops using SigmaNEST, they reduced the number of unused drops by 50%. For them, such reduction can mean a savings for more than $100,000 a year at current materials costs.

Knowing areas of profitability is something all manufacturers can’t do without during economic turmoil. With the data they maintain, VeriForm’s reporting comes easier for them compared to other manufacturers down the road. “We can create as detailed reports as we need…to look for areas of profitability,” says Rak.

Change Ensures Consistent Quality

While VeriForm notes the importance of consistency for their customers, the nesting software itself – and the company behind it, SigmaTEK - has evolved for them over the years. “SigmaNEST is responsive. The team listens to us and wants our input. What’s more, we actually see the changes made from our suggestions,” says Rak. For example, when a VeriForm customer required a part with numerous holes that would be manufactured using plasma, the cut path needed a new algorithm to reduce movement of the plasma head. They consulted with SigmaTEK developers, who took it to their standard monthly “QA Week” and developers put in the needed functionality.

Look for the Details

Perhaps now more than ever the need to nest parts as tightly as possible while maintaining quality, reduce scrap, quote and cost as accurately as possible is paramount. As VeriForm knows from experience, a nesting software that understands the data needs for profitability is a strategic advantage to the manufacturer as well as the end customer.