As a steel manufacturer, everything hinges on your inventory. If there’s not enough, you’ll struggle to fulfil orders. Clients will be unhappy, jobs will back up, and your bottom line will suffer. If you have too much, you’re more exposed to trend changes, and your capital will dip as you find a way to store that inventory.
In the US alone, iron and steel manufacturers hold over $25 billion worth of inventory. It’s the fuel that keeps the business ticking over, but with improper management, it could be a liability.
So, if you’re in the steel and metal fabrication sector, here are some ways to strengthen your inventory control.
Control Your Inventory From a Single Source
Real-time inventory management software is an all-in-one software solution that can track inventory across various warehouses and distribution centers. As soon as the materials enter the warehouse, they are recorded and tracked. Those materials can then be fed into the production cycle.
Not only can you track how much of a given material you have, but you can also track attributes such as size, age, condition, and more. You’ll know exactly what you have, and that information can guide production.
By using inventory management software like RealSTEEL™, you will have full control over your inventory. There will be no need to overstock, and little risk of understocking. You’ll save money and space while ensuring your production demands are met and your clients get the products they order.
Track Materials Throughout the Supply Chain
Technologies like the Internet of Things (IoT) can track materials throughout the supply chain, giving you complete visibility every step of the way. If there is a delay, you’ll learn about it quickly and can act accordingly.
This software can integrate with your existing inventory management system, and by giving all relevant departments access to those systems, you’ll maintain an adaptive and intuitive inventory system.
Apply the same technology throughout the production process to track everything from the current state of production to the condition and health of your machinery.
Always Look for Improvements
Technology moves at a rapid pace, especially in this AI-driven world. There are always ways to improve your systems and adapt your processes.
Conduct regular system and production audits to see where you can make improvements. It also helps to have backup supply options and to ensure you’re not heavily reliant on a single source for all of your materials.
As we saw during the pandemic in 2020, and then with the trade tariffs in early 2025, everything can change in an instant. You may discover that you’re not able to source materials from the same supplier or country, or the price could jump and wipe out your profits.
Keeping all of your eggs in one basket may seem like an efficient and optimum way to conduct business right now, but it could lead to massive headaches in the future.
Optimize Inventory Levels
Use your inventory management software to receive insights into optimal stock levels and define reorder points. The software will generate data to help you understand product popularity and changing trends, and as it’s continually learning about your customers, the industry, and your business, this information will improve over time.
As noted in our guide to reducing inventory costs with ERP, the metal fabrication sector pays between 15 and 30% of total stock value just to hold that stock. Shaving a few percentage points off that total could result in massive savings for your business.
If your costs are toward the higher end of that figure, you may also want to consider reducing your total product offering. Once you have optimized your existing stock, you can then focus on steadily adding more products or simply switching poorly performing products for new ones.
Build Strong Supplier Relationships
Your success as a metal fabrication business hinges on your suppliers. The better your relationship with important suppliers, the easier it will be to access in-demand materials and get a good price.
With enterprise resource planning (ERP) solutions, not only can you optimize your inventory, but you can also automate sales orders and invoicing, making life easier for your acquisition team and suppliers.
Give Your Customers What They Want
Customer relationship management (CRM) integrations will keep lines of communication open with your customers while optimizing quality control and the returns process. It takes some of the strain off your sales teams by automating many of their basic daily tasks, including the use of live chatbots to field various repetitive questions before, during, and after shipment.
ERP systems also perform predictive analysis to project the success of new products while offering insights into other additions. Rather than reacting to these trends and trying to keep pace with your competitors, you can act proactively and hop on the gravy train while it’s still gathering steam.
Summary: Strengthening Inventory with RealSTEEL™
RealSTEEL™ inventory management solutions were tailor-made for the steel and metal industry. It will track all of your inventory while detailing unique variables, including dimensions, chemical attributes, physical attributes, and more. It will streamline your entire inventory, speed up production, reduce waste, and prevent over- and under-stocking.
You can monitor the complete product lifecycle and analyze data to study and predict future trends. The more you know about your inventory, products, and orders, the more you can learn about your customers—that’s the secret to success in any industry.
RealSTEEL™ solutions can also support various other aspects of your business by integrating various tools, features, and programs, including:
- Pipe and tube software
- Multi-line processing software
- Plate processor software
- Metal fabrication software
- Metals nesting software
- Coil processing software
- Flat rolled software
To learn more about our steel optimization software and discover how RealSTEEL™ can improve your inventory and streamline your business, contact us and request a demo.
