Metallurgy

•  Network of dealers and suppliers is located within the whole country, including CIS.

• High dependency on suppliers with raw materials for production.

• Large and set broken warehouse facilities which are not always used efficiently.

• Difficulties related to promotion of goods in western markets (quotas, high competition)

• Periodically increased requirements to quality of produced goods.

• Complexity of production process, need in highly qualified specialists.

• Due to large construction volumes, demand for production of metallurgical enterprises grows.

• High cost of raw materials for metal doping, need of keeping large staff of security department in order to prevent theft.

At the moment, metallurgic complex in general has a high level of competence. One of the main tasks of enterprises on efficient production management is about setting up clear logistics system.

It is one of the conditions for provision with competitiveness of an enterprise in metallurgical market of our country and outside of it.

• Absence of loading and off-loading equipment in required amount.

• Inefficient use of warehouse facilities, inventory is placed in warehouses in chaotic order.

• Absence of data base with volume and weight characteristics of goods which significantly increases calculation time for type transport to be used for goods relocation.

• Insufficient awareness of warehouse personnel on delivery of goods to the warehouse, in most of the cases, warehouse personnel is not ready to receive it.

• Absence of telephone network in some areas of warehouse facilities impedes efficient warehouse operations. 

• Unevenly planned loading of commodities from warehouse to production leads to concentrated delivery of cargo transport.

• Fuel and lubricants warehouses don’t comply with standards and fire and industrial safety

•  High level of secure stocks for production assists to damage of inventory (storage time runs out) and theft.

• Absence of proper purchase planning for commodities for production needs. Materials being purchased which are not in real requirement (procurement schedules are amended once in a half of a year) resulting to a large amount of illiquid assets.

• Absence of instructions on sale of illiquid inventory; committees on determining illiquid materials gather irregularly which makes timely sale complicated.

• Insufficient book-keeping of all plant stocks; corporate informational system does not cover all inventory; some types of items are recorded on paper. It significantly bother operative control on quality and types of stocks.

•  Insufficient level of coordination on cargo transport between warehouse facilities and production. Absence of central dispatcher service on processing of orders for transport, distribution of routes and optimal calculation of vehicle load.

• Excessive idle time in check points, warehouses and workshops.

• Drivers on internal and external routes don’t have means of communication and it complicates provision with tracing over the whole route.

• Exhausted cargo fleet enables failures in cargo delivery to consumers. Insufficient provision with spare parts and untimely conduction of technical maintenance of transport units.

• Absence of motivation in drivers for executing major number of routes.

• Lack of transport is stipulated by its irrational use. Some units order cargo transport for delivery of people and documents.

• Absence of control on use of vehicles, formal filling out of way bills and uncontrolled expenditure of fuel and lubricants.

Based on outcomes of activity of A DAN DZO consultants on metallurgical plants and introduction of complex solutions, the following indicators can be achieved: