Ìetal trade
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Ìetal trade
Particularities of metal trade business
- Low profitability of metal trade business and growing completion due to active creation of regional sales network by independent companies and metallurgical plants.
- Growing demand in line with economic growth
- Instability of price conjuncture when periods of growth are followed by price going down sessions
- Material procurement in rough conditions of metallurgical plants (advance payments, complication of change in parameters of order, absence of clear terms for dispatch).
- Growing requirements of consumers of metal roll on quality of products and service level (broad assortment, availability in warehouse, delivery, terms and timeliness of order execution, growing prefabricability and reducing amount of orders).
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- Relatively rare renewal of assortment due to long life cycle of main part of products, relatively small assortment of goods, broad opportunities of interchangeability of goods with adjacent values of parameters.
- Importance with compliance of industrial compliance rules and labor protection during transportation of large-size and heavy cargo.
- Dependency of loading and off-loading activities on weather conditions upon storing the goods in open areas.
- Evinced seasonal prevalence of demand.
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The following major problematic areas can be highlighted taking into consideration specifics of metal trade:
In sphere of stock management
- Tardiness of stock replenishment result to reduction of client service level and deterrence of sales
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- Decentralized stock management results to accumulation of surplus stocks in companies with branch network.
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In sphere of warehouses management
- Insufficient organization and regulation of warehouse processes and warehouse book-keeping results to errors in acceptance and formation of clients orders, re-grading and shortage.
- Insufficient efficiency of warehouse activities planning results to delay of orders loading to clients, idle time of transport waiting for loading and off-loading activities, imbalance of workload in warehouses: idle times waiting for work are followed by all-out periods when quality of service executed goes down rapidly.
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- Absence of united standards for warehouse logistics in branches lead to redundancy of managerial and controlling personnel.
- Absence of labor regulations and clear description of accountabilities leads to overstating of personnel amount in warehouse and reduction of productivity.
- Limited transfer capacity and bearing capacity of existing warehouses due to neglecting principles of technological design of warehouses.
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In transport management sphere
- Insufficient effectiveness of transportation planning results in failure of clients delivery deadlines, incomplete load and idle time of transport waiting for loading and off-loading works.
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- Insufficient efficiency of own fleet management results in idle time due to technical reasons and overstating of exploitation expenses.
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Our experts possess practical experience in logistics optimization in spheres of metallurgy and metal trade, and we are ready to provide you with assistance in solving the abovementioned problems.
Based on experience of projects implemented by our consultants, the following outcomes can be reached upon solving these problems:
| Indicator |
Outcome |
| Increase in demand satisfaction level |
up to 90–95% |
| Reduction of stock in warehouses |
up to 35–45 days of sale |
| Reduction of order execution time |
by 20–50% |
| Reduction of warehouse expenses |
by 15–30% |
| Reduction of transport expenses |
by 10–20% |
Cost reduction in logistics management
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íà 20–50% |
Increase of deliver reliability and timeliness
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by 10–15% |
Ìetal trade | Oil production | Furniture industry | Pharmaceutics | Ìetallurgy | Ìechanical engineering | Chemical industry | Power industry
