Amidst global supply chain disruptions, market volatility, and raw material shortages, the metal and steel industry looks at a challenging procurement scenario. As per McKinsey¹, steel demand outlooks have been revised from 2.7 to 1.2% for 2022 and 2023, respectively. 

Steel producers should optimize their procurement sourcing strategies to secure the best quality and price while minimizing over- and under-stocking risks. One of the ways to achieve this is by using MRO procurement software, which can help streamline the purchasing process of maintenance, repair, and operations (MRO) items. 

How? Continue reading to understand how a robust procurement management system can help the metal and steel industry navigate procurement challenges.

Maximize Your Potential with a Procurement Software 

Procurement software is a cloud-based solution with features such as real-time collaboration tools and predictive analytics to monitor supply chain risks and opportunities. 

Businesses use a procurement management system to centralize and automate the procurement process on a single platform, from sourcing to payment. 

Here’s how procurement software can help your metal and steel companies navigate procurement challenges:

• A procurement management system can centralize and automate the procurement process — from sourcing to payment — on a single platform. This can reduce manual errors, save time and resources, and improve your visibility and control over your supply chain. 

• It can optimize your procurement sourcing strategies to secure the best quality and price for the inputs while minimizing the risks of overstocking or understocking. Plus, it can streamline the purchasing process of MRO items and prevent duplicate sourcing, lowering inventory costs. 

• Procurement software can enhance your operational efficiency and make your supply chain resilient by enabling faster and more flexible responses to changing market conditions, customer demands, and regulatory requirements. 

• Your procurement software can provide data-driven insights, helping you identify the best suppliers and negotiate the best deals. Plus, features like advanced text analytics, digital simulations, and optical character recognition can help you improve contract compliance. 

Conclusion

Moglix can help you with these benefits by providing various solutions tailored to your needs and challenges. Its MRO procurement software is a cloud-based platform that enables you to streamline the purchasing process of MRO items. It helps reduce costs, consolidate the vendor base, and maintain consistent procurement KPIs across sites.

Recently, Moglix enabled the procurement of structural steel, safety goods, and electricals & cables for the Central Vista Project. It consolidated 30 vendors, reduced the turnaround time to 7 days, and saved 10% in material cost by enabling the source-to-site supply chain for 90% of the required safety groups.
If you want to explore how Moglix can help you navigate the procurement challenges in the metal and steel industry, you can book a meeting with us here.