Marketplace changes and evolving customer demands are putting pressure on roll forming and building material manufacturers to make line of business changes. Moving into a different direction and offering other products and services might make sense for your business. On the other hand, there may be orders that shouldn’t be accepted or new products that simply can’t deliver the profit margins you need. Know what you are getting into before making big changes by deploying a stronger business management solution. Achieve projections and maximize production with RealSTEEL.
The bottom line for any business involves healthy profit margins and happy customers. However, though tempting, it may not make sense to accept every customer order that comes in. Similarly, when choosing to expand product lines and services, there are activities that just won’t generate profit. As suggested in “Buried Costs: The Critical Answers Roll Forming and Building Material Manufacturers Get Wrong with Disconnected Data,” roll forming and building material manufacturers have to ask the question: Should we be in this line of business? It’s a great question, but often hard for businesses in the steel and metals industry to answer.
Data is often buried in disparate, specialty software, making it difficult to reach and difficult to trust. Without accurate insight, leaders can’t easily manage the four main pillars of cost: materials, labor, overhead and outside processing. As a result, it’s tough to track margins on a line-by-line basis, identify the products with pricing that hasn’t increased along with rising material costs, or determine which production lines aren’t hitting projections.
Replace inefficient business systems with an integrated steel ERP software designed to address the unique challenges of the steel and metals industry. Roll forming and building material manufacturers can rely on RealSTEEL to gain insight into the costs and profits of business operations. With this single solution, you can manage every aspect of every order, including outside processors and marketplace fluctuations. Full visibility inside and outside of your facility will provide the data you need to determine whether customer projects are generating healthy profit margins or whether it makes sense to expand certain products and services.
Know what you are getting into when you accept a new customer order or make line of business changes and ensure profits meet expectations. Contact The Wolcott Group for more information about maximizing operations and improving forecasting with RealSTEEL.
By The Wolcott Group, providers of RealSTEEL, a ‘real world’ solution for the steel and metals industry