Iron & Steel Industry
in India
Role of Supply Chain Management in Steel Industry:
Supply chain management (SCM) is crucial in the steel industry for cost efficiency, inventory management, and quality control. It ensures smooth production scheduling, risk mitigation, and sustainability. Effective SCM also enhances customer satisfaction by ensuring timely delivery of high-quality products. Overall, SCM is essential for the steel industry's operational efficiency and competitiveness.
One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic development. because it is both a raw material and an intermediary product. Steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories - major producers, main producers, and secondary producers.
India is the world’s second-largest producer of crude steel, finished steel production of in FY23.
India’s domestic steel demand is estimated to grow by 9-10% in FY25 as per ICRA.
India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24.
According to a Deloitte the demand for steel in India is projected to grow within a range from 5% to 7.3%.
Where Can we Support as Supply Chain Consultants
Enhancing Inventory Management
Implementing effective inventory control systems to balance supply with demand and minimize holding costs.
Optimizing Procurement
Streamlining the sourcing of raw materials like iron ore and coal to reduce costs and ensure quality.
Quality Assurance
Establishing robust quality control processes for raw materials and finished products to maintain high standards.
Improving Logistics
Developing efficient transportation and distribution strategies to ensure timely delivery and reduce logistics costs.
Promoting Sustainability
Encouraging sustainable practices like optimizing resource use and reducing emissions.
Risk Mitigation
Creating strategies to manage risks such as supply chain disruptions, price volatility, and regulatory changes.
Cost Reduction
Identifying cost-saving opportunities across the supply chain to improve the bottom line.
Implementing Advanced Technologies
Introducing advanced technologies such as automation and real-time tracking systems to enhance supply chain efficiency.
Boosting Customer Satisfaction
Ensuring reliable and timely delivery of high-quality products to enhance customer satisfaction and loyalty.
Ensuring Safety
Developing and enforcing safety protocols for handling, storing, and transporting materials to prevent accidents and ensure compliance with safety regulations.
By leveraging their expertise, supply chain consultants help steel manufacturers achieve operational excellence, cost efficiency, safety, and a competitive edge
