PROCESS (STEEL AND METALWORKING)

Over the past decade, the process industry has remained fairly scattered despite mergers of stakeholders that have increased their international business on a market where demand is gradually shifting to the high-growth emerging economies (BRIC: Brazil, Russia, India, China).

The leaders are also setting themselves apart by the breadth and/or specialisation of their range of hi-tech products (special steels for the automotive, nuclear and oil industries). Beyond their product range, it is crucial that stakeholders anticipate long-term demand trends so as to adapt, at global level, a naturally complex production tool and cope with substantial investments insofar as the product - by its very weight - travels over fairly short distances.

Challenges

In this context, the Supply Chain is able to continue creating value in several respects, by contributing to:

  • sales: differentiated logistics service proposals per customer type and associated with distinct prices so as to garner customer loyalty. These proposals concern lead-times and punctuality (standard timeframes depending on product type, shorter lead-times for reserved volumes, maximum punctuality guarantee) as well as the provision of advanced stocks to the production sites of industrial customers and supply of information to customers on how their orders or complaints are progressing;
     
  • cost control: via the integrated management of demand and multi-site production planning, the Supply Chain is essential for keeping production, transport and energy costs under control in the short-, medium- and long-term (detection of excess/insufficient capacities according to the long-term development of catchment areas, guarantee of good load balancing between sites, relevant allocations of capacity to customers/customer categories over the medium-term, optimisation of manufacturing/scheduling programmes and material supply plans over the short-term);
     
  • keeping working capital in check: the Supply Chain plays a role in optimising working capital in its three dimensions: stocks, supplier payments and customer debts by acting on demand management and synchronised planning of the various production stages (hot, cold and finishing), the production management  (batch size, supplies and manufacturing lead-time) and procurement parameters and customer service quality (avoiding customer payment delays because of dissatisfaction) respectively.

What DIAGMA can do for you

 DIAGMA has worked on drastically cutting "cost" production timeframes to reduce the timeframe between the product launch and release to the actual processing timeframe; and by getting rid of works-in-progress stocks. This reduction, making timeframes more reliable, gives companies a decisive competitive edge.

Founded in 1973, DIAGMA is now a leading consultancy firm in Supply Chain Management - and several-times the top-ranking firm in its sector.

DIAGMA has wide-ranging experience with stakeholders from this sector, working at international level. DIAGMA helps them by:

  • defining with the General Management teams the priority zones for expected contribution from the Supply Chain (improving cost/timeframe/service/WC performance, bringing the Supply Chain into line with the chosen medium/long-term developments, strengthening management and control of Supply Chain performance);
     
  • looking, with operatives, for pragmatic solutions inspired by best practice to meet the priorities set by the General Management and simplify tasks;
     
  • lending a hand with converging on tangible and accessible improvement targets.