ERP or Enterprise Resource Planning is suitable for small and large scale manufacturing units. At the steel industry, it can serve several useful purposes. The ERP modules integrate production units, distribution and supply chains. As a result, major iron and steel corporations are adopting ERP solutions. It helps optimize and streamline operations for smooth functioning.

Benefits of ERP Software for Iron and Steel Industry  

1. Multiple Planning Strategy

Steel and iron production requires strict plans and strategies. Stocking long sheets, bars and other products require extensive documenting. The workers do costing for ‘made to stock’ on standard approaches. However, for ‘made to order’ goods, it depends on order nature and material requirement. Hence, the robust ERP software can handle such complexities efficiently.

2. Handling Product Variation

Over decades, steel and iron grades have improved considerably. Today the rising demand for goods has forced companies to focus on innovation. Changes in product grade imply changes in raw material configuration. The ERP software enables the manager to design components depending on the order. They can manage every process, from sales orders to finished goods.  

3. Business Forecasting  

Market forecasting is important to cater to multiple customer demands in the construction and automotive sectors. Since the ERP software promotes business integration, it can also accurately analyze business trends. They perform predictive modelling based on business requirements.  

4. Variable Production  

Iron and steel industries undergo production in batches. They do continuous processing for high-end finished goods. For example, the converter and blast furnace in the factory work in batches. The caster works for individual units while the finishing lines work in batches.  

The workers make the batch selection after understanding the order requirements. They also plan out shipments and transportation. The ERP software will support the variations in production. They handle automatic batch selection based on factors like the following

  • Order volume  
  • Raw material availability  
  • Production scheduling  
  • Due date of shipment  

5. Critical Data Management

ERP software allows the seamless flow of information to workers across all departments. It boosts the efficiency of the steel and iron factories. Moreover, it offers complete transparency to the organizational heads. They get a 360-degree view of critical processes and data in the system.  

 

6. Cost Controlling  

ERP software implementation enables companies to control costs during finance and accounting. Optimum management helps them manage project budgets and other costs. This way, major business operations benefit in manifold ways. The steel company handle administrative procedures via ERP software. All this lets them cut down significantly on prices.

BizERP offers customized ERP software for steel and iron manufacturing industries. Get in touch with the experts to know more.