ERP SYSTEM FOR COMPANIES INVOLVED IN METAL AND STEEL PRODUCTION
For many years, the metal and steel industry in Germany has had to contend with global overcapacities and, as a consequence, with declining prices. Cost reduction programmes are usually the answer to this trend. At the same time, companies make every effort to ensure full capacity usage in their metal and steel production units while increasing sales volume – accepting unprofitable agreements with their customers as a necessary evil. These are the findings of a report published by the Roland Berger consulting firm. Uncertainty in procurement has also risen, according to a report by KPMG: exhausted mining areas and widespread speculation have led to strong fluctuations in prices, with availability strongly affected by geopolitical events.
TRANSPARENCY FOR FINANCIALS AND PROCUREMENT
Accordingly, metal and steel production companies need to take action in two key areas. First, opportunities need to be developed to ensure profitable sales decisions can be made in the future. To do so, key figures from internal financials need to be analysed precisely and enriched with aspects of upcoming market developments. The second activity is to ensure all facets of procurement are implemented and assessed with complete transparency. This makes risks easier to identify and assess. The result is a secure supply chain.
THE ERP SYSTEM KEEPS INFORMATION AVAILABLE
Accordingly, the collection and targeted analysis of information is therefore a key competency for companies working in metal and steel production. Those wanting to master it will require an ERP system that can collect the relevant data and provide it throughout the company.