4 ways digital transformation is revolutionizing the steel industry

Industry 4.0 has seen technologies like cloud computing, artificial intelligence (AI), and machine learning (ML) improve customer service and significantly cut costs while increasing opportunities to create new revenue streams and remaining agile in times of uncertainty.

Digital transformation in the steel industry is referred to as Metals 4.0. Companies use new technologies to gain a competitive advantage and navigate unpredictable times. Here are four ways digital transformation is revolutionizing the steel industry:

1. Improved customer experience

Steel company customers expect a seamless experience in which they can be engaged on multiple platforms with clear expectations about their orders’ cost, timing, and quality. After all, many have their own customers who depend on predictable prices, time frames, and quality assurance for products and services.

If only it were as simple as communicating clear expectations to keep customers happy. Unfortunately, with price volatility and supply chain disruptions plaguing nearly every industry, sharing accurate details and offering confident assurances can be difficult.

It’s hard for a company to manage customer expectations if it can’t predict the cost of raw materials and doesn’t have an accurate picture of expected inventory levels. It’s only a matter of time before customers are frustrated – or worse, they go elsewhere.

A metals-specific enterprise resource planning (ERP) solution can offer business intelligence and predictive analytics to meet customer expectations with greater confidence. Business intelligence provides employees with valuable inventory, cost, and product trends, and predictive analytics can use algorithms and data modeling to forecast material costs, inventory, and projected timelines. With this kind of information available, it’s easier to keep customers happy.

3. New revenue streams

The steel industry has been around for a long time, and many companies have depended on the same practices for years. Tried-and-tested methods allow metals companies to continue delivering quality products – which is a good thing but also can be a weakness.

Doing the same things that have delivered past success can be easy but might lead to missing opportunities to innovate and find new ways to achieve even more. The reality is that some metals companies can get left behind if they fail to explore new ways to work.

Think about how technology can affect the metals value chain and manufacturing. Consider a world where the metal beam, pipe, or plate can relay real-time information about its end use back to engineers. This would allow them to study performance in real time and identify new ways to collaborate with customers to identify innovations. It’s a small illustration of how technology can offer new revenue streams while providing customer confidence.

As customers’ needs change rapidly, new technology can open the door to opportunities for metals companies. Customers need experience, but they also need suppliers to stay ahead with new technologies to help customers stay ahead in their marketplace too.

The benefits of digital transformation can be huge for the steel industry, but change can be a challenge. Knowing where to start is often the hardest step, but we can help make it easier.

At Crowe, our specialized metals ERP team has vast experience guiding companies to digital transformation. So let us help you get started today.