Steel logistics operation mode is divided into three modules: raw material procurement and transportation - steel production logistics - finished product sales logistics


Raw material procurement and transportation
Iron ore and energy are the main raw materials needed by the iron and steel industry, which will consume a lot of business procurement and transportation costs. Generally speaking, large domestic iron and steel enterprises have their own mines at home and abroad. Every year, a large number of imported iron ore from abroad is transported back to the production base by sea. Specific operation, sea freight will be transported to the domestic port of the port, then allocated in the port, and then returned to the company through the inland production base. In order to prevent unforeseen factors, enterprises also hoard a large number of raw materials, only this part of the need to consume expensive enterprise procurement, transportation, inventory costs. Under the background of the rising international ore and shipping prices, how to reduce the cost of procurement and transportation is a headache for domestic steel industry logistics department every year.


Sales Logistics of Finished Products
Generally speaking, steel sales are always sold with its processing and distribution centers. Data show that China currently has nearly 300 steel processing and distribution centers. In the next few years, for large iron and steel enterprises, the biggest trend of finished product sales logistics is to establish and improve the iron and steel marketing system. More and more powerful enterprises have transformed the existing marketing network into a reasonable mode distribution of trunk transportation plus regions.