The steel industry is getting thinner and thinner, so what else can be done to reduce costs?

The profits of the steel industry are getting thinner and thinner, and the profits of the steel industry are close to saturation, so they will become higher and higher, and some costs can be reduced in the cost of steel, such as purchase channels and sales.

At present, the profit level of the steel industry is relatively low, and the profit margin of the steel industry in January and May this year is only, so the freight per ton of steel is very important for steel companies to control costs. In addition to the layout through the industrial Internet, logistics costs are also an aspect that cannot be ignored.

According to statistics, in 2019, China's steel output reached 100 million tons, of which the external material flow, that is, raw material procurement logistics, finished product sales logistics, reached 5 billion tons, and the internal material flow, that is, raw materials entering the factory, storage and processing, smelting to the factory, reached 10 billion tons, adding up to nearly 15 billion tons. Therefore, the freight cost per ton of steel is very important for steel companies to control costs.

1.Features of steel logistics.

Large volume: From the above data, steel logistics has the characteristics of large volume;

The steel transportation chain is long: from overseas iron ore and coking coal into the factory, to the end users of various steel products, the entire industrial chain is accompanied by a logistics and transportation system;

Complex modes of transportation: steel logistics has a variety of modes of transportation such as sea, rail, automobile and pipeline transportation, which are more complex than other industries;

There are many types of logistics: not only bulk cargo of raw materials, but also a large number of finished steel products and various gas transportation.

It can be seen that reducing the cost of logistics and transportation in the steel industry has become one of the important factors affecting the development of the steel industry.

Although the construction of the logistics system of the steel industry has gradually received attention from all walks of life, there are still many problems in steel logistics in terms of the overall development level. It is mainly manifested in the following aspects:

At present, the layout of the steel industry is unreasonable, and the phenomenon of North Iron and Steel transportation to the south is obvious;

The unreasonable layout of the enterprise factory area leads to an increase in internal logistics costs;

The logistics cost in China accounts for 15% to 30% of the total steel cost, which is much higher than the logistics cost of steel enterprises in developed countries.

The logistics efficiency is low and the management is extensive;

The low level of logistics informatization has become a shortcoming of steel informatization;

The lack of relevant standard systems in logistics affects the development of steel logistics.

As the largest bulk material industry, the steel industry must take a multi-pronged approach to improve operational efficiency in order to reduce comprehensive costs. For the intelligent development of steel logistics, on the one hand, the rapid development of the Internet of Things and Internet technology can connect the whole process of transportation of goods, vehicles, drivers, etc., creating a new development space for the steel industry. On the other hand, network freight opens up the shipper and all transportation links, which can enable the shipper to directly contact the driver and vehicle, and greatly reduce the opacity of the industry.

It can be said that whether it is policy, technology, or trading model, it has created a new starting point for the steel industry.

As the country's largest welded steel pipe manufacturer and China's top 500 steel pipe manufacturing leading enterprises, Tianjin Youfa Steel Pipe Group Co., Ltd. invested in the establishment of a bulk commodity electronic logistics platform, 168 Yunyou Logistics has focused on the transportation of bulk commodity industry since its establishment, with the logistics platform as the carrier, based on the integration of goods and vehicles, and guaranteed by professional services, to promote the sharing of social resources and provide one-stop logistics services for bulk commodities for the society.

Iron and steel enterprises are currently very low profits, high costs, only transformation and upgrading can achieve the second take-off, in order to increase efficiency, only to reduce the loss of enterprises, iron and steel enterprises to develop how to refer to the February 14 publication of the "World Metal Herald" A11 version of the introduction.

It is necessary to carry out comprehensive optimization and improvement from the management and technical aspects to solve the problem, I hope it can help you!

Hello, the steel industry is a competitive industry, how to reduce management costs is the key to the survival and development of enterprises. Here, we will introduce the company with the lowest management costs in the steel industry - Baosteel Group.

Baosteel Group is one of the largest steel producers in China and one of the largest steel companies in the world. Baosteel Group has a perfect management system and a strong management team, through lean management and information technology, the fraud guessing effectively reduces the management cost of the enterprise.

First of all, Baosteel Group implements lean management, adopts management modes such as "lean production", "lean management" and "lean innovation", and effectively reduces management costs by continuously optimizing processes, reducing waste and improving efficiency.

Secondly, Baosteel Group vigorously promotes the construction of informatization, and has established a perfect informatization system within the enterprise, realizing information sharing and coordination in all aspects of production, sales, and chain, reducing labor costs and logistics costs, and improving management efficiency and decision-making level.

Finally, Baosteel Group attaches great importance to talent training and management, and has established a sound talent management mechanism, which has attracted and retained a large number of high-quality managers through scientific talent evaluation, incentive and training mechanisms, providing a solid guarantee for the development of the enterprise.

To sum up, Baosteel Group has successfully reduced management costs through lean management, information construction and talent management, and has become one of the enterprises with the lowest management costs in the steel industry.

Currently, the lowest cost of managing steel in the global steel industry is India's Tata Steel. The company was named one of the world's most competitive steel manufacturers in 2019 and has received the "Quality Leadership Award" and "Environmental Leadership Award" for many years in a row.

Tata Steel has advanced production technology and efficient management mode, and has achieved remarkable results in improving product quality and reducing production costs. In addition, the company also focuses on environmental protection and sustainable development, and has made active efforts to reduce energy consumption and emissions.

It should be noted that due to the influence of laws and regulations, market conditions and the situation of enterprises in different countries and Hepin Town area, there are differences in management costs of various enterprises. Therefore, when choosing a partner or investment object, it should be comprehensively considered according to the actual situation.

The steel market is cruel + reduce costs and increase efficiency, what should I do.

The steel market is a highly competitive industry, and reducing costs and increasing efficiency can help enterprises stay competitive in the fierce market competition. It is recommended that you carefully analyze the market environment and competition of your company, formulate a cost reduction and efficiency increase plan in line with the actual situation of the company, and actively use advanced management methods and technical means to improve production efficiency and product quality. At the same time, we must continue to improve our own quality and professional level, adapt to the rapid changes in market demand, follow the laws of the market, and continue to innovate, in order to achieve greater success in the cruel competition in the steel market.

The steel market is cruel + reduce costs and increase efficiency, what should I do.

Hello Qinqin, it is a pleasure to serve you According to the questions you asked, mine is: Regret Lu First of all, you can try to find new market opportunities and partners to reduce the pressure brought by market competition. It may take some innovation and market research, but if you are able to find a market area that is different from other steel companies, you may be able to make more profits and succeed in this area.

Second, you can increase profitability by increasing production efficiency and reducing costs. This may require a re-evaluation of aspects such as your chain, production processes, and human resources to determine what can be further improved. You can find new technologies, automate processes, train employees, and more to increase efficiency and reduce costs.

Finally, you can consider partnering with other steel companies to face market challenges and solve industry problems together. This may require some negotiation and consultation, but if you can find the right partner, you can work together to achieve some important goals, such as resource sharing, collaborative R&D, etc. In conclusion, the steel market is indeed a cutthroat market, but if you can find new market opportunities, improve production efficiency, reduce costs, and collaborate with other businesses, you have a chance to succeed.