Business scenarios for the Steel industry
Dear All,
I need the various business scenarios used in the steel industry for the procurement and inventory management. In case anyone have worked on an implementation project for Steel industry can you please guide me which are the major scenarios common to all steel industries?
Thanks.
Hi,
Here are a few scenarios which I have worked:
1.Steel is usually procured in the form of plates of different dimensions (length, width & thickness).
To capture this, you can activate material class (class 001) for material master.
You can create your own class and have these dimensions as characteristics.
While creating material codes, you can capture the dimensions as characteristic values..
This way, you can maintain the uniqueness of material codes in the system.
2. Steel is usually procured in bulk from various sources, both domestic and imports.
As such, the price of the same material may vary depending upon the source and also when it was procured.
Hence, it becomes a necessity to manage the different lots separately.
You can activate batch management in inventory or better still, Split valuation by batch to handle this.
3. If steel is procured for specific project, then the purchase requisition/purchase order will be for specific Project (WBS element).
This means you will be working with a/c assign.categ "Q"
4. You can have Order unit that is different from base unit (Stock keeping unit.)
you can maintain suitable conversion factors for the same.
5. While issuing steel to Production, the big steel plates may be cut into smaller pieces and issued.
So, you can have a different unit of issue in material master along with conversion factors.
6. If your client is having tender system for procurement, then you can have the RFQ to handle this.
You can have different loading factors to assign different weightages for vendors while maintaining Quotations.
You can go for an enhancement to RFQ screen to capture extra fields relating to tender.
You can have a Z form to output tender comparative statement as per client requirement.
Hope the above info is useful to you.
Regards
Prabhu
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