Steel and metal industry manufactures face a huge opportunity to transform their operational model by implementing digital technology, enabling them to improve operational efficiency, customer service, inventory levels and profit margin.
For example, plants and assets often operate in silos, rather than being integrated to meet a larger strategic objective. Supply chain executives have little access to real-time information, leaving them unable to anticipate changes in the market. As a result, companies perpetually act defensively, without the ability to anticipate and mitigate risk or jump on short-term opportunities, which leads to significant value losses.
Steel and metal companies have been continuously trying to solve these issues, but traditional operational improvement methods are close to their limit; digitization becomes perhaps the only solution for the current seemingly dead end.
The era of digitalization in the steel and metal industries has arrived. Cost of data acquisition, storage and analysis has dropped dramatically in the past five years: multiple digital solutions are available today and relatively inexpensive to implement. As a digital technology, predictive analytics has already demonstrated its potential to revolutionize the operational model, in terms of speed, cost, and ease of implementation. In sales, it enables the demand forecast use case – based on a detailed understanding of customer needs and demand drivers – to allow companies to reduce inventory and improve margins while delivering better service. In operations, predictive maintenance use cases help companies to predict equipment breakdowns (a common headache of steel and metal companies) and optimize maintenance frequency.
Galbiati Group is a Company leader in the steel field: the Mechanical Machining and Construction Division and the Gear Reducers Division make Galbiati Group the ideal partner qualified for mechanical transmissions for steel industry and for customized construction of mid and large-sized components that require high quality standards: http://www.galbiatigroup.com.