Most metal processing businesses are looking for ways to better control production costs. At RealSTEEL, we understand the need to cut costs. We also know that the answer lies in inventory management. And the best way to optimize inventory to meet production needs is with an ERP solution designed specifically for metals processing. Here’s how.
How ERP Helps Metals Processors Control Costs
ERP systems connect data across the enterprise and enable real-time sharing so you can monitor and manage inventory accurately, ultimately resulting in more satisfied customers and revenue growth.
With connected data through cloud-based ERP, your business has more control of the resources needed to complete the multi-step processing that today’s customers expect. And with more complex production workflows, you need an ERP solution that optimizes all inputs including inventory, people, and machines.
How ERP Improves Inventory Management
There are several significant ways that ERP contributes to better inventory management. Let’s focus on the top 3: automation, tracking, and forecasting.
- Automation
Automated inventory management ensures your production supplies are consistently available. Managers can view inventory parts and levels in real time, making adjustments as needed. And cloud-based ERP can save you both time and money by eliminating manual processes related to inventory management. Introducing automation makes tracking and managing data easy everywhere in the company, including the warehouse. Having up-to-the-minute visibility into actual inventory and costs means you can better manage your complete production process, providing the full picture in one simple and actionable view.
- Tracking
Metal processors need full visibility of their inventory across the business including multiple locations. Because today’s customers expect fast service, its important for your workers to have access to the full inventory in order to accurately assess and communicate production and delivery times. Tracking allows you to see if you have the right inventory in the right locations, and to automatically update inventory levels using IoT technologies.
- Forecasting
ERP systems can help you track sales and purchasing, providing the ability to match inventory levels with historical customer demand cycles. If your stock is low, it can trigger more purchasing. If your inventory is high, then you may want to launch a marketing campaign or initiate a return to the supplier. Having insight into surplus inventory in real time means you can cut costs by moving those items before they become obsolete. You can also ensure that your warehouse space is being optimally utilized with the most profitable stock.
How ERP Can Cut Costs
To truly control costs throughout the production process, your metals business needs a system that will ensure the right material is available at the right time. Purchasing agents and production managers need clear visibility into inventory, orders and actual usage to keep material costs from eating away at profits.
Only a cloud-based ERP system designed to handle the complex attributes of metal inventory can support the automation that drives profits. With timely, accurate data shared across functions, your organization can place materials orders with precision, fully aligned with production scheduling. Automated job routing will optimize the complex matrix of materials and resources required to consistently produce orders. By connecting materials and processing data from sales through shipment, you can:
- Allocate inventory at order entry and automate routing of jobs through the entire production process, utilizing materials and optimizing resources step to step.
- Support digital workstations that allow operators to enter actual materials usage, tracking scrap, sheers and break weights.
- Manage outsourced processes, including materials, semi-finished products and finished goods.
How RealSTEEL Can Help You
Are you ready to cut costs and boost profits? Our team of experts can show you how the right cloud-based ERP can help you coordinate materials planning with downstream processes. Offering many benefits to your entire organization, we think that the inventory management capabilities alone will inspire you to upgrade your technology platform. Put us to the test by scheduling a demo today.
To learn more about how to control production costs, you can also download our ebook, New Rules of Metals Operations: How Cloud ERP Delivers Data-driven Insights and Masters Multi-step Processing.
