Optimization of the Entire Supply Chain (Utilization of Information and Technology)
DX strategy
Advanced use of ICT to create new value throughout the supply chain
NST is aiming to achieve a revolution in distribution by thoroughly digitalizing trading company operations and pushing for efficiency throughout the supply chain. In the steel business, as a steel distribution DX platform covering a wide range including the processing centers, we deployed four systems before the first half of fiscal 2023, as shown in the overview below, in relation to order placement work, inventory management, exchange of transaction data, and processing site management. We will continue to enhance the functions and expand the bases in the future. Through this DX strategy, NST will realize sustainable distribution reform and aim to create new value in society.
Overview of DX measures
- “SPOD” Improved order entry system
- Standardization of order placement work and strengthening the check functions are intended to improve accuracy and efficiency, and work towards zero human errors.
- “N-SCM” Integrated inventory management system
- Automation of inventory control in repeating transaction fields is intended for quicker responses to changes in the situation.
- “NST Business Online” Information exchange portal
- A new interface infrastructure for business partners that will yield smoother and more efficient exchange of transaction data.
- “EXCS®” New coil center system
- The core business management systems at NST subsidiary coil centers will be updated and consolidated.
In conjunction with the above DX measures, we are integrating efficiency tools such as RPA (Robotic Process Automation) and electronic signature services to promote comprehensive digitalization and paperless operations of our business processes.
DX promotion system
The DX Promotion Department was established in July 2020. Some members of the Department are concurrently placed in business divisions, and the Department studies and implements business process improvements utilizing ICT not just for the steel business but for the entire company. To ensure operations are integrated with management, the DX project roadmap is regularly reported to the Management Meeting.
Training of DX human resources
To make full use of the systems that have been put into operation and to drive distribution and corporate transformation at a global level, it is important to develop talent that can think systematically and in a data-driven way, and who can create value from a digital perspective, in response to a shift in the mindset of executive management. In the first half of fiscal 2023, NST conducted a lecture for executives and senior management, and is also planning training to develop the leaders who will drive DX in each workplace. In addition to recommending that all employees take the IT Passport examination, we also conduct training for the use of ICT tools in everyday work, and are working to improve the ICT literacy of all employees.
Communication of DX-related information
At NST, we introduce the progress of DX at appropriate times in the Group newsletter for Nippon Steel Trading Group employees, and are working to improve employee awareness.
NST began the full-scale introduction of RPA* in 2019, and fiscal 2023 marks its fifth year. Each year we develop around 20 robots, and 82 were operating (under development: 8) as of the end of April 2023. The departments using them account for more than half of the company, and they have contributed to improving the work efficiency of many users. We will continue introducing RPA at suitable times in the future.
- *This is software that teaches a robot to perform routine work that people perform on a PC so that the robot can perform the work itself. It is used for simple repetitive work and work spanning multiple systems (such as copying data), and can greatly improve work efficiency and eliminate simple errors in copying or other work.
At NST, we are proceeding with the introduction of NoCode tools* and generative AI tools, and are also working for further DX.
- *A method of conducting development without writing code. It does not require programming knowledge, and can be used to develop web apps and produce websites. Using this method can shorten the time required for development and reduce outsourcing expenses.