In a tight steel market, even small misalignments between sales and operations can turn into costly headaches. Promises made to customers hit production snags. Lead times balloon. Inventory builds in the wrong places. And meanwhile, your competitors are ready to swoop in with quicker answers and tighter execution.
This is where the role of the VP—particularly in operations, commercial, or supply chain—becomes pivotal. In today’s environment, bridging the gap between sales commitments and operational capabilities is no longer optional. It’s mission-critical.
The Pressure Is Real
The steel industry isn’t operating in normal conditions. You’re facing:
Unpredictable demand surges
Supply chain inconsistencies
Shrinking mill allocations
Labor shortages
Customer expectations that haven’t eased up
Sales wants to say “yes” to every order. Operations needs to protect throughput and efficiency. Without tight alignment, both sides lose—and so does your margin.
The Cost of Misalignment
When sales and ops operate in silos, the downstream effects compound:
Missed delivery windows that damage customer trust
Overpromising on lead times that operations can’t meet
Expedited shipping and overtime costs to “save” mismanaged jobs
Inventory mismatches that tie up working capital or result in shortfalls
VPs sit right at the intersection. You’re the link between commercial urgency and operational reality. And in a tight market, that connection has to be stronger than ever.
Making the VP Role a Strategic Bridge
Here’s how today’s best-performing VPs are closing the gap:
1. Creating a Shared Language
Sales and operations often talk past each other—one focused on deals and dollars, the other on throughput and capacity. VPs need to establish common KPIs and shared visibility so both sides work from the same playbook.
This means:
Regular joint forecast reviews
Order mix reports with operational impact
Shared dashboards that track margin, not just volume
2. Turning Down the Volume—Sometimes
Not all business is good business. In a constrained environment, the VP must have the courage and clarity to say “no” to unprofitable work—or at least delay it to fit capacity.
That’s not about playing defense. It’s about defending margin, customer relationships, and long-term value.
3. Leveraging AI and Data for Better Decision-Making
AI tools can now predict demand patterns, flag scheduling conflicts, and optimize order routing based on real-time plant capacity. As a VP, it’s your role to champion the use of these tools—not just for planning, but as a daily decision aid across teams.
With AI-backed insights, you can:
Prioritize high-margin orders
Suggest realistic lead times
Reallocate internal capacity on the fly
4. Focusing on Cross-Functional Agility
The market changes fast. Your teams need to move faster. Leading VPs break down silos by holding daily or weekly huddles between sales, scheduling, procurement, and production leads.
This keeps everyone aligned and nimble, able to respond to last-minute allocation changes, customer escalations, or raw material constraints.
A Strong Bridge Holds Weight
A VP who successfully bridges sales and operations doesn’t just prevent chaos—they create a competitive edge. Customers feel the difference when your promises are met consistently. Your teams feel the difference when they’re not constantly in fire-fighting mode. And your margins reflect it.
This isn’t about micro-managing either side. It’s about establishing trust, shared goals, and tools that bring clarity to complex decisions.
Final Thought: This Market Has No Room for Silos
In normal times, you might get away with disjointed communication and reactive planning. But in today’s steel environment, the margin for error is gone.
The VP’s role is no longer just to keep the trains running. It’s to align the track, time the departure, and make sure everyone’s on the same train.
If you can bridge sales and operations now, you won’t just survive the tight market. You’ll lead in it.
