What are the Benefits of Using ERP Software Technology in Steel Industry

ERP for steel industry is an essential method that enables steel companies to effectively integrate their supply chain, enhance information transparency, deliver strong and future-proof backbone systems and increase productivity through better sales and procurement management. ERP for steel industry offers a lot of benefits, including;

Integrated IT model

This is one of the major benefits offered by ERP software system to a steel plant. An integrated IT model helps the plant to support and integrate all processes ranging from raw material handing to order shipments. Information is effectively shared and parallel processing is employed.  Since inception, ERP systems have been improving a lot and are now able to integrate and deal with process control, machine control systems, production schedules, stock management, forecasting, human resource management, reporting, shipment planning, etc. Steel plants can choose from on-premise or on-demand ERP systems and also choose from cost efficiency and robustness according to the plant’s specific needs.

Multiple Planning Strategies

Production in steel plants needs multiple production planning strategies. Bar and long sheet products would follow ‘made-to-stock; strip or flat products are ‘made-to-order’. The estimated cost for former method depends on the standard methods while the later method is based on the nature of the order and material needs. In order to handle these complexities in planning methods and costing, effective handling of ERP solutions is required.

Variable Production Processes

Manufacturing process in a steel plant includes batch processing, constant processing and a mix of both. For example, the convertor and blast furnace work in batches; the caster constantly works for specific units and the end lines work in batches again. So, order requirements, typical inheritance and shipment planning has to be analyzed prior to batch selection. Effective ERP for steel industry can best support these variations in the production process by doing automatic batch selection based on raw material forecasts, order requirements and production scheduling as per shipment due.

Product variations

Within the last decades, steel grades have got enhanced consistently. In the middle of 20^th century, common steel products such as rods and bars were made of plain steel. But, during 21^st century, ribbed bars have been introduced and thermo-mechanically covered bars offered more strength and stability. Essentially, a change has been made in the raw material configuration. Now, ERP system helps floor managers in a steel plant to automatically design the parts according to the order and also help manage the processes right from the sale order to the finished products.

Business Forecasts

Steel industry has to deal with high-demanding clients in construction, automotive and heavy equipment fields. So, robust integration of market trends, electronic orders and business forecasts are required. This is where ERP for steel industry helps with effective business integration, predictive modeling of requirements and trend analysis.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Dec 31st 1969 18:00. Viewed 0 times.

Share on APSense

Comments