Benefits of digital platforms in metallurgy
If you look at the current degree of digitalization in the metals industry, you still see a very mixed picture. In manufacturing, many companies have realized the benefits of digital technologies and have partially implemented them. According to a Fraunhofer study in spring 2019, 95% of German companies have already automated nearly half of their processes. However, the entire industry is only 30% digitized.
The situation is especially dramatic in the trade in steel and metals. “In many factories, the fax machine is still the most advanced equipment for fulfilling purchase orders,” the study said. Unfortunately, companies using digital selling platforms are still considered somewhat exotic among steel and metals trading companies, but processes can be speeded up and better structured, that is, made more efficient with these platforms.
In many industries, digitalized platforms have proven their ability to create added value. Customers can choose from a variety of providers in the digital ecosystem and quickly find the best deal for themselves. Vendors, on the other hand, can reduce their ad spend because being on the platform is likely to help them connect with customers beyond their own advertising.
Step towards globalization
Similar benefits can also be realized in the steel trade. As a first step, you need to find a suitable market for the company to facilitate its digital transformation. Trading solutions already provide a ready-made framework. Typically, a trading platform consists of a store-in-store solution, meaning that the supplier remains visible as such, but consumers can search for items across the entire platform. How well this works in practice is shown by the examples of eBay and Amazon, which have sparked a wave of startups. Traders, small antique bookstores or jewelers who would be too expensive to have their own online store could turn to an international customer.
With the right platform, many steel suppliers who have not yet taken advantage of e-commerce could be catapulted into the digital age. They can independently represent themselves on the digital marketplace and at the same time be easily found by buyers. If you are looking for a specific material, you will find all the suppliers who can deliver it. Prices can be negotiated individually. This benefits both large traditional companies and small specialized suppliers who can easily find customers around the world in the digital market.
Only one interface instead of 100
One platform for all is a convenient solution because individual dealers do not need to invest money to sell their products online. No need to set up your own online store and no need to connect to a large number of customers who want to order digitally. After all, a B2B e-commerce solution needs to be maintained on a regular basis, and it also makes sense to connect directly to a merchandise management system.
Both suppliers and consumers only need one interface if they trade on the same platform. If you run your own online store on your website and perhaps have 100 customers and now want to connect digitally, you need to create 100 interfaces and keep them up to date. Therefore, the big advantage of platforms for the entire steel trading industry is the greatly simplified IT complexity for all parties involved.
Also, access to these types of platforms is usually not very difficult. Technical knowledge is usually not required as the platform IT staff is responsible for connecting to the vendor's ERP system. Service consumers only need to register on their chosen platform.
Time-saving machine
Given the sheer number of individual vehicle parts or metal and steel parts required for a high-rise building, you can get an idea of how much time can be saved if all components and materials can be ordered online - using only one platform and no time limits .
By leveraging a global platform, manufacturers can focus on manufacturing, and sales teams have more time to serve customers. Time savings are achieved not least by eliminating media breaks. No one else will need to copy orders from a fax and enter them into an Excel spreadsheet. Buyers also save time finding suitable suppliers and material products. Buyers can get dos