When planning a new material storage solution for its Kansas City service center, 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, tube 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 centers 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 industry sectors including construction, energy, chemical and petrochemical. 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,” Conley says. “It’s all part of our commitment to continuous improvement in the steel industry.”
Expanding capabilities
SPS already has Kasto automated storage systems installed at its sites in Tulsa, Okla., and Longview, Texas – both of which have experienced performance improvements. Building on this success, SPS once again chose Kasto for its Kansas City project.
“These systems have made our operations faster, more precise and significantly safer,” Conley says. “Incorrect deliveries have become a rare occurrence. We knew we wanted to continue relying on Kasto’s dependable technology.”
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 metric tons of material. Another factor: Due to its location near an airport, the new warehouse had to comply with strict height restrictions.
Automation in action
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 optimal use of the available space – a key advantage given the site’s height limitation. Automated loading and unloading processes reduce manual labor while accelerating picking and material flow.
Thanks to its “goods-to-person” design, orders are processed quickly and ergonomically – ensuring high throughput and operator comfort. SPS can now move bar and pipe material more efficiently, with fewer handling errors and less waste.
The UniCompact 5.0 is designed to handle long goods up to 24 ft. long and 16 in. high. 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,” Conley says. “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 is greater transparency, improved accuracy and measurable savings in personnel costs.
A strategic investment
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,” Conley says. “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 service team.
“Their support was excellent,” he concludes. “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.”
Kasto Maschinenbau GmbH & Co. KG
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