Addressing Challenges in Metal & Steel Supply Chain Through Digital Solutions

Challenges in Metal & Steel Supply Chain Through Digital Solutions

The global economy leans on the metal and steel industry, a critical foundation for numerous sectors’ growth. With expectations to reach 2.3 Billion Metric Tons by 2030 at a 3% CAGR, the steel industry significantly influences a nation’s GDP. Consequently, manufacturers are focusing on a vital operational element that impacts their growth – the supply chain ecosystem.


In the industry of metal and steel, a well-devised logistics strategy is essential. It ensures the seamless movement of raw materials, production machinery, and finished products across vast and fragmented regions. Presently, digital innovations like automation, AI-driven TMS, Machine Learning, etc., are revolutionizing the metal supply chain.

Reasons for Investing in Logistics Technology by the Metal & Steel Industry

Metal and steel businesses are increasingly investing in logistics management technologies, driven by several underlying factors:

The Present Scenario in Metal & Steel Logistics

Agility Requirement

The industry’s supply chain is susceptible to sudden changes, requiring a future-proof, flexible workflow. For instance, India’s target to produce 300 million tonnes of steel by 2030 highlights the crucial role of a seamless logistics system.

Product Diversity

Handling products like wires, coils, pipes, and more demands strategic planning for transportation, shipping, and safety to avoid significant losses.

Transportation Specifics

Differing transport needs for heavy and non-heavy products like raw materials, semi-finished, and finished goods require specialized vehicles and careful handling.

Stakeholder Complexity

Collaboration among suppliers, manufacturers, carriers, and customers ensures a seamless process but can collapse if there are any gaps in coordination.

Fluctuations in the Industry 

Strategic forecasting is required to address the industry’s volatility due to shifts in trends, demand, and unexpected crises.

Challenges and Digital Solutions for Metal & Steel Logistics

Despite its promising future, the current metal and steel supply chain faces operational challenges. Digital Supply Chain Management (SCM) offers technology-driven solutions, such as:




Technology-Driven Solution

Freight Procurement

Time-intensive analysis of shipments; Higher freight rates

Digital platform with auto-load analysis & e-auctions


Last-minute cancellations; Time-consuming contract tracking

Automated re-allocation; Rule-based order allocation

Multi-Plant Management

Managing multiple plants; Lack of visibility

One-window management; 100% visibility & audit compliance

Forecasting & Route Planning

Manual forecasting; Primitive transportation planning

AI-driven analytics; Digital route planning & optimization

In-Transit Traceability

Lack of visibility; Manual monitoring

ULIP-based tracking; Real-time shipment monitoring

Freight Settlements

Manual billing; Time-intensive reconciliation

AI-driven accounting; Auto-invoice generation


Fragmented channels; Time-consuming communication

One-window collaboration; Real-time communication & electronic data interchanges

Revolutionizing Supply Chain with Fretron

Fretron’s TMS digitalizes the complete logistics workflow for the metal industry, offering a nimble, sustainable, and efficient supply chain. Its AI-powered solutions enable:

  • Data-Driven forecasting

  • Tactical logistics procurement

  • AI-supported route and resource optimization

  • Precise freight evaluation

  • End-to-End visibility

  • Full audit compliance


Explore Fretron’s TMS solutions with our experts


The Digital Horizon

The metal and steel industry stands as a beacon for growth and profitability, with supply chain resilience acting as a key enabler. By embracing digital TMS solutions, businesses not only gain robust workflows but also foster competitive advantages. The shift towards technology-powered SCM strategies promises to fuel growth across other vital industries, setting the stage for economic advancement.

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