February, 2025- Q: Greg, you’re now a technology leader in this industry, but how did you get started working with metal service centers?
A: I started Bayern Software right out of college in 1985. After receiving a degree in business information systems from Arizona State University’s W.P. Carey School of Business, I knew I wanted to start my own company. So, along with a classmate of mine at ASU, I started a small software company. Our initial plan was to develop custom software, but about a year in, I received a call from Bill Felling, the owner of Interstate Steel Supply in Phoenix.
Bill wanted to automate his metal service center, but he didn’t want to spend the money for one of the o-the-shelf ERP packages that were available at that time. So, he struck a deal with us to develop an ERP package for his business at a steeply discounted hourly rate. That discount was in exchange for three things. First and foremost, Bill would help us fully understand his business. Second, our company would retain all future development and marketing rights. Third, after it was complete, Bill would help us get our software into two additional service centers.
It seemed like a win-win situation at the time and, in hindsight, it was. Bill got a custom ERP system for his business, and we got a software platform that we could market to a rapidly expanding segment of the metal distribution industry.
That software—Steel Plus—has been running in service centers for nearly four decades.
I’m very proud of what we accomplished. We gave our customers the tools they needed to manage their business and grow their bottom line without the overhead of a large, generic ERP system.
In 2014, we realized that we needed to create an ERP system similar to Steel Plus using modern technologies. That’s when we decided to develop Capstone.
In 2023, I sold Bayern Software to Enmark Systems to ensure that our customers continued to have access to the best software and technology available in the industry. The relationship has been great. Many of our Steel Plus customers have moved over to the Eniteo ERP system developed by Enmark, and we are using the knowledge and features built into Steel Plus to enhance and expand Eniteo. Those who remain on Steel Plus continue to be supported by the Enmark team.
Q: What are the current big trends in technology?
A: Technology certainly plays an important role in metals distribution but service centers do not tend to be early adopters. Trends in other industries from five or even 10 years ago are still developing within our industry. Service centers are typically very careful to adopt only new technologies that will make a significant difference to their ability to serve their customers, remain competitive and become more profitable.
That said, adoption of new technologies is moving into smaller and smaller companies. Larger organizations are no longer the only ones adopting them. The biggest trends seem to be cloud-based ERP solutions, warehouse-oor technology such as barcode scanners, and advanced reporting and business intelligence tools.
Metal centers and other similar industrial sectors still rely heavily on on-premise software, but cloud-based solutions are the norm in most other sectors. Today’s cloud-based solutions can deliver more secure options with better reliability than almost any on-premise option. Barcode scanning technology and advanced reporting solutions are also becoming more common in this industry.
Q: How can service centers best take advantage of these trends?
A: I think the biggest thing for companies to realize is that, when properly used, software solutions can help them make smarter decisions more quickly and better ride out the inevitable ups and downs of the market. Just be smart about which systems you adopt and put the necessary resources into properly implementing them. If you work with a vendor that knows the metal service center industry, all the better. It is important that you stay focused on your goals and how you can use technology to meet them.
Q: What predictions do you have for the future of technology in this industry?
A: We are in a time of consolidation in the industry, and I see that continuing. Smaller service centers should understand that the proper adoption and implementation of these newer technologies will add value to their companies, whatever the future holds for them.
GREG BAYER is executive vice president of Enmark Systems Inc. eniteo.enmark.com
