You might think that the steel industry is so well established that there is no room for a new company. Fortunately, this is not true. In fact, the US steel industry is worth in excess of $100 billion, that’s a good reason to get into the industry today!
The steel industry is fast paced and you’ll find there is a huge amount of competition. But, with a little use of technology, you can actually turn this to your advantage. All you need is a plan and some good software.
The right steel and metal fabrication software will allow you to plan your business, review each stage of it and ensure it all connects together to create a seamless and efficient process.
This is important; streamlining minimizes costs and allows you to give your customers the best possible prices.
In fact, your customer is the most important part of the process and the right software can help you to make them feel special.
You need to be able to see how much steel a specific customer is using to evaluate how big a discount you can give them. Of course, a discount is not the only way in which you can help a customer. Simply offering them extended payment terms will help.
The right software will also allow you to highlight the peaks and troughs of a specific customer’s order history. This will allow you to capitalize on moving steel prices to ensure you have what they need in stock at the best possible price, when they need it.
Software will allow you to effortlessly do this for multiple customers.
The right software package will be able to monitor the current price of steel from your various different suppliers. It will evaluate who is offering the best deal and whether the supplier is worth continuing with.
It can also give you the information you need to renegotiate with any one of your suppliers.
This has to be good for your customer and your own profitability.
Of course software allows you to examine the processes being used within your firm. You should be able to track any piece of steel through your business. This will ensure it is being used efficiently and you are not holding greater stocks than you need.
The industry is extremely fast paced and can be volatile. It is best to keep minimal stocks present or you might find yourself a victim of a price drop and be unable to sell your stocks for more than you paid for them!
Examining your production process will also allow you to spot areas where you can save time and money. You will also be ableto identify areas where the steel is being customized unnecessarily.
The point of any good software is to ensure you know your customer’s needs, often before they do. It should also allow you to oversee every step of your process which will ensure your costs are kept to a minimum.
If your current software isn’t doing this it’s time to change!