Steel and Pipe Supply, a steel distributor based in Kansas City, has opted for KASTO's UNICOMPACT 5.0 automated honeycomb storage system. Why? It speeds up material handling, eliminates weak points and improves service quality – a concept that has already proven itself at other company locations.

When planning a new storage solution for its Kansas City service centre, US-based steel distributor Steel and Pipe Supply (SPS) had a clear vision: safety, high throughput, minimal error rates, and a compact footprint. “We supply the Midwest with bar stock, tubes, and structural sections,” explains John Conley, Co-President at SPS. “Our customers rely on more than just our materials – they count on our outstanding service.”

SPS has a long-standing history dating back to 1933, when Sam Goldstein founded Kansas Hide and Wool during the Great Depression. Originally trading in hides and furs, the business entered the metal scrap and steel market in 1954 after Sam’s passing. By 1959, Jack Goldstein had fully transitioned into the steel sector and renamed the company Steel and Pipe Supply Co. Today, SPS operates across multiple sites in the Midwest and is among the largest privately held steel service centres in the United States.

The company’s broad product range includes carbon steel such as structural steel, flat steel, and coils. These are supplied to sectors including construction, energy, chemicals, and petrochemicals. SPS also offers a variety of value-added services such as sawing, drilling, flame cutting, bevel cutting, as well as laser and plasma cutting – providing materials tailored to customer specifications. With its own truck fleet, the company ensures prompt and reliable delivery. “We’ve always embraced technology to boost efficiency and support digital solutions,” says Conley. “It’s all part of our commitment to continuous improvement in the steel industry.”

From Two to Three: Expanding Capacity and Capabilities

SPS had already installed KASTO automated storage systems at its sites in Tulsa, Oklahoma, and Longview, Texas – both of which have experienced significant performance improvements. “These systems have made our operations faster, more precise, and significantly safer,” Conley explains. “Incorrect deliveries have become a rare occurrence.” Building on this success, SPS once again chose KASTO for its Kansas City project. “We knew we wanted to continue relying on KASTO’s dependable technology,” he adds.

Like many steel stockholders, SPS faces challenges such as limited storage space, safety risks from manual handling of heavy goods, and the need for precise stock management. At its Kansas City site alone, SPS handles around 16,000 tonnes of material. Another factor: due to its location near an airport, the new warehouse had to comply with strict height restrictions.

Automation in Action: UNICOMPACT 5.0 Offers Maximum Efficiency, Speed, and Safety

For SPS, the KASTO UNICOMPACT 5.0 honeycomb automatic storage and retrieval system was the ideal solution for the Kansas City facility. Engineered for maximum storage density, the system makes optimum use of the available space – a key advantage given the site’s height limitations. Automated loading and unloading processes significantly reduce manual labour while accelerating picking and material flow.

Thanks to its “goods-to-person” design, orders are processed quickly and ergonomically – ensuring both high throughput and operator comfort. SPS can now move bar and pipe materials more efficiently, with fewer handling errors and less waste.

Transforming Storage: Key Benefits of the UNICOMPACT 5.0

The UNICOMPACT 5.0 is designed to handle long goods of up to 24 feet in length and 16 inches in height. Its high-density configuration, with thousands of individual honeycomb storage locations, provides far greater storage capacity than conventional racking systems. Automated material handling further improves workplace safety by reducing direct contact with heavy items – significantly lowering the risk of injury.

Faster cassette changes streamline operations, enabling staff to retrieve and stage orders more quickly. “The system doesn’t just improve safety – it makes daily routines easier, faster, and more rewarding for our team,” says John Conley. “That kind of upgrade makes a real difference to morale and productivity.”

All material movements are monitored in real time via the KASTOlogic warehouse management system. This intelligent software records inventory data automatically, removing the need for manual entries and greatly reducing the likelihood of errors or misplaced stock. The result: greater transparency, improved accuracy, and measurable savings in personnel costs.

 A Strategic Investment in Performance and People

For SPS, the investment in KASTO’s automated solution aligns perfectly with the company’s long-term strategy of enhancing safety, efficiency, and accuracy through automation. “Safety has always been our top priority,” says Conley. “This system helps us achieve it without compromising on speed or precision. It’s a win-win – for our people and our performance.”

Although the project involved a few logistical challenges – as is often the case with large-scale installations – Conley praised the fast and professional support of KASTO’s US-based service team. “Their support was excellent. Whenever we needed assistance, they were quick to respond and highly competent. That kind of reliability keeps downtime to a minimum and helps us remain agile.”