Tackling Metal & Steel Supply Chain Challenges: A digital pathway

The metal and steel industry is the backbone of the economy, laying the foundation for developing other sectors. Contributing significantly to a nation’s GDP, the global steel industry is expected to expand to 2.3 Billion Metric Tons by 2030 at a CAGR of 3%. Thus, manufacturers across this industrial space are trying to strengthen a critical operational area that determines their growth & performance- the supply chain ecosystem.

A strategic logistics agenda is imperative to the metal industry for the sleek transportation of raw materials, manufacturing equipment, and finished products across fragmented geographical regions. Today, digitalization is catalyzing the metal supply chain with automation technology, AI-driven TMS, Machine Learning, and many more.?

Let’s dive into the underlying reasons that drove metal and steel companies to invest extensively in logistics management technologies.?

The current face of the Metal & Steel Industry’s logistics

The metal industry’s supply chain is volatile, thus requiring businesses to be future-ready with an agile, responsive workflow. Reports reveal that India aims to manufacture 300 million tonnes of steel by 2030, and a seamless logistics module shall play a fundamental role in its journey. Besides, the current industrial space can be identified by the following factors.?

A diverse range of products

The metal industry deals in an inclusive range of products like wires, TMT, sheets, coils, pipes and many more. These products are usually bulky and vary in size, shape, thickness, material, and pricing. They require a lot of storage space, strategic unloading, a distinct mode of transportation,reliable shipping and safety guidelines to prevent critical losses to the company.?

Specific transport requirements?

The metal industry logistics mainly involves transporting two types of products- heavy and non-heavy. These products can be further classified into raw materials, semi-finished and finished goods. Each category has unique characteristics, thus having distinct freight requirements. For example, heavy ones must be transported in specialized trailers, while non-heavy ones should be in general vehicles.?

Complex stakeholder network

The metal and steel supply chain relies on a complex network of stakeholder operations. The network includes suppliers (domestic and international), producers/ manufacturers, carrier partners, customers and end-users. These stakeholders collaborate at every step to ensure seamless process execution and management. Any gap in the collaboration module can result in the collapse of the entire workflow.??

Industrial fluctuations?

The metal industry is volatile, meaning it undergoes various shifts in trends, demand dynamics, consumer expectations and unforeseen crisis. It implies that the supply chain needs to be agile and responsive to accommodate upcoming fluctuations without hindering business dynamics. Market competitiveness demands strategic forecasting and predictive analysis of forthcoming events.??

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Challenges facing the Metal & Steel supply chain

Although the current metal and steel supply chain has a promising future, it is still vulnerable to various operational loopholes, mainly due to a primitive workflow.?

However, the rise of digital SCM across the industry helps businesses overcome these challenges with AI-driven benefits and holistic management. Let’s dive into how it is achieved.

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