How EDI Creates Real Efficiencies in the Metals Industry

Lowering the cost of outside processing 

In the metals industry, outside processing steps, such as heat treating, annealing, galvanizing, or slitting, are often outsourced to third-party suppliers. Managing these processes manually can be a major source of inefficiency, especially when information must be re-entered into multiple systems, which can increase the risk of delays, errors, and miscommunication. EDI automates the transmission of key documents like purchase orders, shipping instructions, and certifications between enterprise resource planning (ERP) systems and external processors. By digitizing this workflow, materials can be accurately tracked from the moment they leave a facility until final customer delivery. Digitized workflows help improve scheduling and reduce lead times and can eliminate duplicate data entry and minimize costly mistakes, which allows operations teams to maintain tighter control over production and logistics expenses. 

Streamlining toll processing workflows 

Toll processors play a critical role in the metals value chain and often act as intermediaries between steel mills and end customers. The toll processors’ ability to deliver high-quality, value-added services, such as leveling, blanking, or edge conditioning, depends on their ability to exchange information quickly and accurately. EDI enables toll processors to automatically receive processing instructions, shipping documentation, and material specifications directly from upstream and downstream stakeholders. Real-time updates improve coordination, eliminate miscommunication, and reduce the number of phone calls, emails, and faxes traditionally required to manage orders. By integrating EDI with their ERP systems, toll processors can also improve traceability, reduce processing bottlenecks, and ensure that relevant documentation travels with the material, from initial order to final delivery. 

Improving forecasting and inventory management 

Forecast accuracy is a persistent challenge in the metals industry, which is characterized by fluctuating demand, long lead times, price volatility, and complex inventory management. EDI facilitates proactive planning by enabling companies to receive demand forecasts, historical sales data, and just-in-time inventory updates directly from their customers and suppliers. This automated data flow improves demand visibility and allows for better alignment between procurement, production, and distribution teams. Companies can use this real-time information to adjust purchasing plans, reduce safety stock, and lower carrying costs, all while maintaining high service levels. The ability to see what’s coming before it hits the dock or production line allows for smarter resource allocation and avoids costly overstock or shortages. 

Creating a leaner receiving process with advanced insight 

Warehouse and receiving operations are often plagued by inefficiencies caused by poor communication and lack of visibility into incoming shipments. EDI addresses such inefficiencies by providing access to advanced shipping notices (ASNs), which contain detailed information about what’s being delivered, when it will arrive, and how it’s packaged or labeled. This visibility allows warehouse teams to prepare in advance, allocate resources effectively, and expedite receiving and inspection processes. EDI integrated with ERP enables automated matching of ASNs to purchase orders and receipts, which ultimately helps reduce paperwork, avoid discrepancies, and accelerate putaway. These improvements are essential in lean operations when reducing nonvalue-added activity and improving flow are top priorities. 

Why your EDI team matters

Implementing EDI is not just a technical decision; it’s a strategic one. Generic or poorly integrated solutions often fall short when applied to the nuanced workflows of the metals industry. From tracking complex processing paths to managing compliance documents like mill test reports, metals businesses require a purpose-built approach.

Crowe has developed EDI extensions specifically designed to support the full range of transactions found in metals to help make integration faster, more seamless, and more aligned with real-world operations. With our expertise in both EDI and the metals industry, we help clients unlock efficiency, improve stakeholder relationships, and achieve measurable return on investment. 

Ready to modernize your supply chain? Contact our team today to learn more about how EDI can help your business eliminate friction, cut costs, and grow with confidence.