Fired by the corona-related restrictions in 2020, the steel trade is currently experiencing golden times. The steel price has risen continuously since the beginning of the year, and with it is the margin in steel trading. In the meantime, however, the procurement prices for retailers are also increasing and the gap between sales price and purchase price is slowly closing again. It remains difficult to predict precisely at what level a stable market price for steel will settle. For this reason, companies in the steel trade should now think strategically and actively secure the competitiveness of their product range in relation to other materials.
There are three main profit drivers in steel trading: the margin, the costs for the complex intralogistics and the smoothest possible processing processes. The companies have little influence on the margins that can be achieved; a further decrease in the trading range is only ever a matter of time. However, the intralogistics and processing are designed by the companies themselves, so this is where the greatest potential for optimization and thus for sustainable securing of one’s own competitiveness lies. It is essential for steel traders to focus now on the logistical processes and the efficiency in their processing. There is still unused potential for growth of 30% and more, which can be raised in a short time.
In order to facilitate the next step in the direction of strategic further development with the help of digital solutions, KALTENBACH.SOLUTIONS has developed a kind of quick check. With the help of the so-called BoostPILOT, the actual efficiency in the on-site processing is objectively measured in a period of only 5 weeks. The increase potential to be leveraged can then be calculated from the data and benchmarking can be created. Implementation is simple and inexpensive, as there are no costs for project management or employee training. After completion of the trial period, the companies have scientifically proven results that serve as the basis for answering central strategic questions about processing, machine procurement and warehouse logistics. When the measurements start in the 3rd quarter, the results can already be incorporated into the annual planning for 2022.
Further information on the BoostPILOT can be found at: kaltenbach-solutions.com
KALTENBACH.SOLUTIONS GmbH with offices in Düsseldorf and Freiburg strives for long-term cooperation with companies in the steel processing industry. We have set ourself the goal of becoming a preferred partner – for the benefit of both parties.
As a full-service provider with decades of experience in the steel industry, we develop innovative web- and AI-based industry solutions to increase performance in the field of operations. Thanks to many years of experience in mechanical engineering, KALTENBACH.SOLUTIONS has succeeded in connecting the world of steel with the digital world. This unique link guarantees our customers a measurable success and creates sustainable added value.
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