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.
Metal and steel businesses are increasingly investing in logistics management technologies, driven by several underlying factors:
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.
Handling products like wires, coils, pipes, and more demands strategic planning for transportation, shipping, and safety to avoid significant losses.
Differing transport needs for heavy and non-heavy products like raw materials, semi-finished, and finished goods require specialized vehicles and careful handling.
Collaboration among suppliers, manufacturers, carriers, and customers ensures a seamless process but can collapse if there are any gaps in coordination.
Strategic forecasting is required to address the industry’s volatility due to shifts in trends, demand, and unexpected crises.
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:
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:
Tactical logistics procurement
AI-supported route and resource optimization
Precise freight evaluation
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.