Specific of supply chain planning of ferrous metallurgy companies
MAGAZINE №2 (73) April 2016
AUTHOR SOLODOVNIKOV V.V.
CATEGORY Corporate logistics industrial companies Logistics production Modern concepts and technologies in logistics and supply chain management Planning the supply chain
ABSTRACT
The article provides an overview of the current state of the steel industry in the world and in Russia in particular. It was noted that over the past decade the supply chain leading steelmakers have gone through a series of transformations that have radically changed the requirements for their management. A study of the evolution of supply chains of ferrous metallurgy companies are provided, analysis of the factors that demonstrate large-scale shift in the global steel markets is presented. The paper examines the structure of a typical supply chain of a ferrous metallurgy company. The generalized model of the supply chain, including mining and metallurgical complexes based on the upgraded SCOR notation is proposed.
Increase in attention to the creation and development of partnerships/strategic alliances between players of metallurgical market and the joint efforts of customers and producers to stimulate growth and innovation opportunities is highlighted. The main features of metallurgical production are analyzed in terms of their planning: the main bottleneck of production, production cycle, volatility of metallurgical processes, production campaigns. The analysis of the key challenges for the steel companies for the coming years are presented: the excess of supply over demand, a large amount of excess capacity. The following areas of improvement are proposed: cost minimization, differentiated service for customers, standardization and transparency of processes and operations in the supply chains, the development of new technological products, reducing emissions. The appropriate improvement tools are proposed: methodology change based on the principles and processes of Supply Chain Management as well as IT tools to support planning of supply chains of steelmakers – Advanced Planning and Scheduling systems for Metals. On the basis of practical experience estimates of planning processes organization impact in accordance with best practices and appropriate information support to key performance indicators of companies are provided.
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