A sharper view: Analytics in the global steel industry
With an increasingly competitive environment, global steel companies are searching for ways to gain a competitive advantage. Steel companies have employed analytics for years, from process simulation to laboratory management systems to computerized maintenance management systems integrated with real-time production data. However, by using advance analytics, companies can sharpen their view to make better decisions in different areas of their business, including product costs and margins, customer insights and demand, risk management, capital investments, production and operations safety, suppliers, and global supply chain.
Key messages from the article:
- A gradual but pervasive evolution of analytics techniques in the global steel industry is expected over the next few years. Analytics has the potential to influence all major areas of the manufacturing value chain.
- Manufacturing companies can gain a margin increase of up to 6 percent by applying a more holistic approach to using analytics. Many of the first and most significant applications of advanced analytics in the steel industry will likely be in the supply chain operations.
- Advanced analytics represents a step change in capabilities. Steel companies have the opportunity to expand the use of analytics in managing their businesses and for strategic decision making.
- It is early days for advanced analytics in the steel industry. There are opportunities for first mover advantage, exploiting lessons from the application of analytics in other sectors.