ERP software for Steel Trading
ERP for Steel Trading Industry

ERP Software for the Steel Trading Industry

Driving the movement and distribution of steel products like longs, flats, coils, TMT bars, structural steel, and metal scrap across diverse industrial sectors, steel traders operate in a highly competitive environment. Successful steel trading and distribution demands precise control over purchasing, sales, steel stock management, inventory tracking, dynamic pricing, and steel logistics, where even minor inefficiencies can directly impact profit margins.

To tackle these challenges, ERP for steel trading delivers a unified digital framework that connects every function from procurement to dispatch. It enables traders to monitor material specifications, manage grades and sizes, track pricing fluctuations, and respond instantly to customer demand through real-time analytics and automation, an essential capability for wholesale steel trading and steel supply chain management.

Sectors like construction, automotive, aerospace, defense, rail infrastructure depend heavily on uninterrupted industrial steel supply. Lighthouse ERP, with domain expertise since 1987, delivers an industry-specific ERP solution for steel traders. The system automates core business functions including purchase, sales, finance, and inventory while offering actionable insights, cost control, and built-in compliance management tailored for steel trading companies.

As India cements its position as a global steel trading hub. Lighthouse ERPs dashboards and analytics reduce operational risks, and respond quickly to market changes driving higher efficiency, better financial control, and sustainable growth in the competitive trading industry.

ERP for Steel Trading Industry
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Challenges of Steel Trading Industry

Challenges Weight Based Billing

Weight Based Billing and Inventory Valuation

Steel is traded by weight (MT, KG, or coil weight), but orders are raised by theoretical weight or dimensions. This causes manual reconciliation during dispatch, leading to billing disputes and inaccurate valuation.

Challenges Multiple Grade, Size

Multiple Grade, Size, and length Variants

Each steel product (like TMT bars, coils, or sheets) can have multiple grades, lengths, and finishes. Manual handling of such variants causes errors in dispatch, incorrect order picking, and customer dissatisfaction.

Challenges Scrap and Rejection Handling

Scrap and Rejection Handling

Steel trading often involves returns, rejections, or scrap material with variable quality. Tracking rejected lots, resale, and conversion of scrap manually leads to loss of material traceability and financial leakage.

Challenges Freight and Logistics Optimization

Freight and Logistics Optimization

Steel is heavy and costly to transport. Without freight contract visibility or delivery route optimization, companies face high transportation costs and delayed deliveries.

Challenges Metal Testing

Metal Testing and Quality Certification

Different customers (like automotive or construction companies) demand mill test certificates (MTCs) or lab test reports for every batch. Manual certificate tracking is difficult.

Challenges Stock Visibility

Multi Yard Stock Visibility

Steel stock is often stored across yards, ports, and warehouses. With centralized system, tracking available stock and movement between locations becomes easy.

Challenges Customer Credit Management

Dealer and Customer Credit Management

Steel trading involves multiple dealers, sub-dealers, and bulk buyers with complex credit limits and payment cycles. Manual tracking leads to delayed collections and blocked capital.

Benefits of ERP For Steel Trading Industry

Benefit Automated Weighbridge

Automated Weighbridge and Billing Integration

ERP automates weight-based billing by integrating with weightbridge systems called as weighbridge ERP integration, capturing actual weight at the time and invoices, stock, and costing in real time eliminating mismatch errors.

Benefit Attribute-based Item

Attribute-based Item Master Management

ERP maintains item masters with multiple attributes such as grade, gauge, thickness, and finish. It ensures accurate order picking, better classification, and full traceability from supplier to customer.

Benefit Digital Scrap Tracking

Digital Scrap Tracking and Resale Valuation

The system digitally manages scrap material recording source, weight, and resale value. It integrates scrap into stock valuation and allows real-time reporting on profit recovered from scrap sales.

Benefit Integrated Logistics

Integrated Logistics and Freight Tracking

Adopting Logistics module in ERP, integrates freight management with dispatch and invoicing. It tracks transport contracts, freight rates, and shipment status, ensuring cost-effective logistics and timely customer delivery.

Benefit Batch Certificates

Auto Linking of MTCs and Batch Certificates

ERP links quality certificates directly to heat numbers, coil IDs, or batch numbers. It ensures every delivery is accompanied by the correct test document, improving customer trust and audit readiness.

Benefit Centralized Stock Tracking

Centralized Stock Tracking Across Sites

ERP provides a unified view of stock across all locations, including weight, grade, and form. Inter-yard transfers, loading slips, and delivery status are updated in real time for complete control.

Benefit Auto GST and e-Way Bill

Auto GST and e-Way Bill Generation

ERP ensures compliance by auto-generating GST invoices, e-way bills, and filing-ready reports. It also provides audit logs for every transaction for smooth financial governance.

Features of Lighthouse ERP for Steel Trading Industry

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Streamlined Purchase and Sales Management

Automates buying, selling, pricing, and dispatch of steel products for smooth workflow and full visibility.

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Automated Operations and Cost Efficiency

Minimizes manual work, reduces delays, and cuts administrative costs through end-to-end automation.

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Integrated Business Process

Connects inventory, finance, logistics, and HR for real-time data flow and coordinated operations.

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Industry-Specific Customization

Tailored modules for steel trading including weight-based billing, grade tracking, and scrap management.

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Analytics for real time decision making

Trading companies gain real-time KPI like Gross Margin, Inventory Turnover, Order Fulfillment Cycle Time, Supplier Lead Time, and Working Capital Cycle. Helping decision-makers to improve profitability, stock efficiency, supplier performance and customer service.