Supply chain management in the metals and mining industry is embracing the digital revolution and utilising Industry 4.0 technologies as a means of gaining better control of inventory, sales and logistics.
Some companies have been hesitant to change their legacy IT systems to embrace fully aspects like the Internet of Things (IoT), but industry specialists at Kloeckner and PSI Metals discuss with Metal Market Magazine Seema Chaudhary how the sector can reap great benefits from digitalisation. This can be implemented and managed in a series of steps.
Kloeckner & Co digital transformation
Open industry platform Major independent steel and metals distributor Kloeckner & Co (KCO) continues to work on the large-scale digitalisation of its business, driven by the challenging fundamentals of steel distribution. The company has noted that customers are generally not bound to any particular supplier because of the generic nature of commodity steel, making the costs of switching low. Also, steel purchasers are often under price pressure, especially where steel represents a major part of their costs.
In addition, KCO flags that steel distribution markets remain fragmented. While acquisition activity in the United States has resulted in fewer business owners amongst steel suppliers and consumers, the sector also remains fragmented. Competition for sales of commodity steels – mainly based on price, availability and reliability – is intense.
Article courtesy of Metal Market Magazine