Technology & Innovation

Customer Success: Ritchey Metals leverages Sage X3 for exponential growth


It is a tale as old as time.

An entrepreneur starts a business and over the years, the next generation takes over operations. As the company grows, it successfully adds more and more staff.

This is the story of Ritchey Metals.

Established in 1965, Ritchey Metals operates two facilities in southwestern Pennsylvania. A multi-generational family company, it is a preferred supplier of zinc, aluminum, and non-ferrous alloys across the die casting, electroplating, and steel coating industries.

In less than five years, Ritchey Metals grew from 20 employees to more than 130 employees. The company needed a solution that would allow them to integrate their increasingly complex operations, improve business visibility, and position the organization for growth. Here’s how.

Disparate systems called for a modern technology deployment

There were several factors that caused company leadership to consider a modern ERP solution in Sage X3.

  1. The company used several siloed systems to carry out different aspects of its operations. As they grew, they tacked on more systems that did not integrate with each other.
  1. Different departments tailored these systems to their processes rather than leveraging technology to optimize their processes.
  1. Because of these disparate systems, there was an inherent lack of trust in the accuracy of the reports and data. This had a demoralizing effect on staff, as they could not accurately report on their hard work.
  1. As a commodities-based company, keeping inventory of the fluctuating cost of aluminum and other metals is vital to their business. Trying to hedge or buy futures became a more difficult process, affecting company margins.

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It became paramount for the business to have accurate numbers, make more timely decisions, and get better performance checks.

As they considered different ERP systems, several “must haves” came to the forefront:

  • Fast access to accurate, real-time data
  • A solutions provider that understood the metals market
  • An all-encompassing solution that would ease cross-departmental collaboration
  • Maintenance and equipment management
  • Hedging, commission, and pricing customizations
  • Oversight into the company’s transportation system
  • Best practices that came with the provider’s expertise

With Sage X3, Ritchey Metals will be able to manage its entire manufacturing operation with a data-driven approach—from electronic data exchange to inventory, sales, and financials. The company aims to reduce its operation cost by over $200,000 per year.

“Sage X3’s innovative technology will play a critical role in accelerating the growth of our business,” said Stephen Ritchey, president, Ritchey Metals.

“Data lives at the core of our operations and with Sage, we’re confident that we’ll be able to leverage real-time data to gain competitive advantages in our industry and continue to thrive in an uncertain time.”

Sage X3 will allow Ritchey Metals to deliver intelligent reporting tools, allowing the company to confidently forecast inventory, streamline its supply chain, and manage its various business units more efficiently.

Sage X3’s intelligent reporting tools will allow the company to minimize inventory expenses while improving response times to customer orders and inquiries. They will be able to leverage key business data, empowering the leadership team to achieve strategic goals.

As manufacturers build more agility into their supply chains, organizations like Ritchey Metals are in prime position to leverage the most innovative technologies to help them succeed in their digital journey.

About Sage X3

Sage X3 is software for established businesses looking for greater efficiency, flexibility, and insight. Its powerful capabilities allow you to take control of your entire business with faster, simple and flexible production, financial, and supply chain management.

Based on in-depth interviews with Sage X3 customers, the Forrester Total Economic Impact (TEI) study, commissioned by Sage, found the overall ROI for Sage X3 is 213% with an average investment payback period of just 6 months.

Learn more about Sage X3 here.