problems and solutions of iron and steel industry

Unique challenges in steel industry and how Lighthouse ERP can deal with them

Published on : October 27th, 2021

Publisher : Rohit M.

ERP lies at the heart of most manufacturing industries in the world today. Not only has it facilitated organization for managing business functions, but it also has empowered all the executives, leaders and employees within the organization by providing them  freedom to work remotely and access their information independently from anywhere.

Steel industry is no different. Ever since its invention, ERP has facilitated manufacturing industries from every domain. As the system is upgrading day by day, steel industries are reaping its benefits by taking advantage of the system's flexibility. ERP modules are highly customizable, and that is the most amazing quality of the system. Manufacturing industries always dream about having the perfect software for their company, and ERP is a Boon for them all. 

Steel is the most important material that is used in almost every industry in today's world. As the world is stepping towards a state-of-the-art generation, the demand for steel has skyrocketed due to industrial development. As a consequence of this increasing demand, steel manufacturing industries face mountains of challenges dealing with maintenance and management of the business processes. 

This is why we at Lighthouse are committed to provide world class ERP solutions which are customized to cater the unique needs of the business. Lighthouse brings its 35+ years of expertise to build cutting edge ERP solutions for steel and metal industries bespoke specifically to meet their unique requirements. 

Through this blog we have discussed about 5 major and unique challenges in steel industry and how ERP can deal with them: 

1. Labour Intensivity :

Steel industry is one of the most labour intensive industries as it requires huge manpower to carry out daily operations. So the management of human resources becomes very challenging. Therefore we build customized ERP softwares to effectively organize human resources. Lighthouse ERP automates and streamlines all the administrative tasks and facilitates the HR department. The HR management module of ERP includes several features such as database management, payroll management, attendance, employee training and recruitment. With the help of implementation of high tech solutions, steel industries can manage their personnel with ease.

2. Inventory management and quality control :

Inventory is one of the most crucial aspects of manufacturing industries. Failure in proper inventory management leads to the failure of the entire business. Improper management of inventory can affect the quality of goods directly. The demand for steel in India and all over the world have heightened immensely due to rise in the demand for infrastructure, real estate and automobiles, etc. For delivering better services and quality steel products, inventory management is vital. ERP makes it easier to track the item quantity, quality and availability. As it is integrated with procurement management, it also tracks the incoming inventory. Having total visibility and control over inventory, assists in better delivery and reduces inventory costs by optimization of required goods. Our inventory management balances the demand sales and inventory and maintains the correct amount of inventory at the correct level. 

3. Logistics and supply chain :

Steel industries have one of the largest and heaviest inventories and therefore supply of goods becomes more challenging and costly. As most of the steel mills in India are located inland, unlike China and Japan which are located close to the sea, which makes the logistics much arduous. Also, steel logistics requires a robust supply system as the amount of goods supplied is huge. Because of high supply demand, managing and optimizing logistics in steel manufacturing industries is essential. Lighthouse ERP tracks logistics and supply chain and enhances the flow of steel goods and raw materials. 

4. Production planning :

Steel industries often face several challenges regarding production efficiency. The most common challenges in steel production are overproduction, high energy costs, material costs, production scheduling, and stock availability. If not managed properly, these obstacles can lead to inferior quality of goods, waste of raw materials and resources and reduce ROI. In order to utilize the resources efficiently and develop just the right amount of goods, it's necessary to plan the production in advance. Lighthouse ERP assists in production planning by giving a 360 degree view over the entire process. It helps in keeping track of raw material availability and oversees the status of manufacturing. Having a centralized system for accessing all the information remotely is very beneficial for steel industries to build effective production strategies.   

5. Growth of business :

Due to a myriad of processes and huge enterprise size, ERP in steel manufacturing industries need to focus on daily operational tasks and therefore couldn't focus on growth. Growing the business could cost them much more than expected and there will arise a need to integrate additional systems, recruit employees and train them for operating the systems. This may or may not be proven fruitful and if not planned  could lead to huge losses. By opting for a complete and sophisticated ERP solution, such as Lighthouse ERP, executives and business heads could focus more on growth than monitoring the processes. Lighthouse ERP gives complete freedom to steel industries to grow limitlessly as all the systems are automated and connected through a cloud platform which eliminates the need to hire additional systems. Plus it empowers all the employees to access the data and operate from anywhere.