Steel manufacturing industry is subject to high levels of competition in all global markets. Product quality and compliance with various guidelines are essential factors in the steel industry, and it is therefore necessary to have access to tools that are capable of tracking raw material cost including high volume sub-contracting together with analytical data for identification of the critical factors and process phases involved.
AXPulse, with team of expert consultants for Microsoft Dynamics AX, have successfully been able to deliver solutions to one of its steel industry client, in fact steel industry leader in Africa. Below are few of the pain points and high level solution details.
One of the biggest pain point was the calculation of actual and accurate cost for slitting operations based on which the sales representatives can add an appropriate margins and can quote selling prices. The calculation of cost is off the essence for steel manufacturer considering intense competition and cut throat pricing. This means that wrong calculation of cost would result in wrong selling price and would directly affect the ‘top line’ of company’s performance.
We provided a solution ‘Slitting Inquiry’, which is greatly helping the sales representative to quote the accurate sales price for a given item. This inquiry is capable of calculating the input value, slit costs, and offcut cost accurately. Also, the inquiry is capable, to calculate scrap weight, and the Kgs/slit based on the slit width. Production charges and production stops charges can be easily added to calculate the total slit cost value, and subsequently a markup percentage can be defined to calculate the selling price.
Another pain point for our customer had been the item search on the sales quotation from the on-hand form. Considering high number of configuration per item in the item master having minimal difference in the configuration value, it had been extremely difficult for the sales representatives to search for an item on-hand and quote its customer.
We provided a user friendly interface for the sales representative to help them filter the item on the basis of length, width and thickness. The new and improved item search functionality added significant value to the sales business process as the sales representatives were able to filter the items with certain lead times and this is resulting in building strong relationships with their customers.
That’s it for today, there are many other solutions which have helped resolved our steel industry customer long standing pain points.