Vol.02 Taking on the Challenges of Solving Industry Issues with Metal X UP Vol.02 Taking on the Challenges of Solving Industry Issues with Metal X UP

Metal X UP® was developed to convey complicated communications related to steel distribution in digital form to enhance and advance business operations. Continuous improvements have been made since the service was first offered in April 2022, and many companies–starting with Group affiliates–are now using it.
How will Metal X UP change the Metal One Group and the steel industry, and how will it develop? We had personnel involved in Metal X UP’s development and representatives from Group affiliates address this topic, including reviewing Metal X UP’s functions for convenience and future possibilities.

A tool for providing new value to the Metal One Group

What was behind the birth of Metal X UP?

Shunichi Enomoto speaking.

Enomoto

I was a member of the QOLABO project to promote business transformation. As we were carrying out interviews about customer and industry issues, we thought that we might be able to resolve issues the old-fashioned steel industry faced because of its business practices. It was the impetus for Metal X UP. Several years before that, Tamatsukuri Corporation created their User Page (today’s User Page Plus) within Metal One’s development platform; the Metal X UP project started because we thought we might be able to use that concept.
It quickly became apparent that the complexity of mill certificate administration alone was a considerable burden. Computerizing that and integrating order placing and receiving and checking order histories within the same system would enhance usability, and the prototype for the current user page of Metal X UP took form through trial and error.
Shunichi Enomoto speaking.
Naoto Kawada speaking

Kawada

I was primarily involved with systems development after winning the 2017 robot contest. I went to Silicon Valley as a perk for winning, and worked on computerizing process progress statuses with the members from that time. What I learned then were methods for developing systems with low-code tools to keep programming language to a minimum and improving it based on user feedback. The experience was useful in developing Metal X UP. I’m leading the overall project now, as well as working on promotional efforts, starting with creating a logo. We hope to make Metal X UP a tool that the Metal One Group can leverage to provide customers new value and help them uncover issues.
Naoto Kawada speaking

How are you using Metal X UP at Group affiliates?

Tanaka

We began using it with a certain customer as the first user in April 2024 at Metal One Sumisho Tubular Products. Partnering with a customer we had worked with for a long time, had a strong relationship with and had built a line of business with, we’ve been having them use the Metal X UP functions that allow you to check inventory and orders, shipments and mill certificates, as well as view transaction histories. I think a few future points will be to expand options besides these basic functions and to see how to deal with the wide range of products we handle and processing.
Ryoichi Manabe speaking.

Manabe

Our use is limited to just some departments at Metal One Specialty Steel for now; we are starting small and verifying effectiveness. My section’s business mode is traditional retail wholesaling, with many secondary wholesaler customers and end users also indistinct because many trade channels are linked.
Because we often have sudden orders in small lots for the many types of products we handle, communication is very frequent, and these transactions also require a great amount of clerical processing. Metal X UP has become a way to improve that. We are now using the functions for submitting mill certificates and delivery notices as well as sorting transaction histories by customer, among other things. We plan to develop functions to boost convenience in future.

Ryoichi Manabe speaking.

Okuno

At Sus-Tech, we were searching for ways in-house to computerize workflows for things such as internal ledgers and credit checks, using digital tools for business improvement and business process reengineering. Meanwhile, we had not really been able to find suitable ways of linking with our customers, although we see the need for tools that enable us to do that. It was at that time that we heard from Metal One about Metal X UP in 2023, and began using it in January 2024. We began using the function for managing mill certificates digitally in-house, customizing functions in December, adding the order history function, and releasing it to all our customers.

Making it a platform that is always being upgraded​

Please tell us about the parts of Metal X UP that you feel are most convenient,
and about how customers are responding.

Manabe

Transaction histories and the latest product information are updated daily. It is also linked to the mill certificate database. Customer lead times have substantially shortened as well compared to before installation, which makes people very happy. There is also the benefit of broad reductions in customers’ clerical tasks when preparing ledgers for such things as the delivery notices and delivery orders needed for logistics that aren’t generated through their central systems, since Metal X UP extracts data from order histories and outputs it as ledgers.
As an in-house example, managing mill certificates digitally means it is now possible to sell inventory from one location at other locations. We no longer need to assign dedicated staff to manage mill certificates, either, and I believe that being able to simplify our business configuration and division of responsibilities has been a great accomplishment.
Takashi Okuno speaking.

Okuno

Internal tasks have been dramatically reduced, because the only task needed for uploading mill certificates is to scan them with a multifunctional copy machine. Moreover, Metal One does the scans for us for steel products we buy from them.
When we started using it in-house, it was well received among our clerical staff, who are ordinarily highly critical. When I told them that we planned to allow customers to use it themselves, I was told: “We want you to bring that about immediately, because they will definitely be pleased” (laughs). Customers that have used it also said it was “paying attention to every detail,” from the standpoint of being able to extract mill certificates from order histories as well as to download batches of mill certificates according to delivery date. Although there were some worries prior to its release, people are also happy in terms of how accessible the user interface is and how simple it is to use.
Takashi Okuno speaking.

Tanaka

Compared to our former practices, one big benefit is that this single tool eliminates a lot of paper use, and substantially reduces operational processes as well.
Another major plus is that there are fewer entry errors. What customers input is directly reflected in our main system. Orders received by email or fax had to be entered manually, and it was possible for errors to occur at that point. Less time and effort are required, and there are fewer mistakes. I believe that being able to work with some leeway offers great merit for both sides.

Enomoto

We thought we needed to keep the customer’s perspective in mind from the time we were developing it. Naturally, reducing work in-house is a great thing, but the key is to alleviate customer burdens and link the results with the rating from them.
In terms of refining our service, to get people to rate it even more highly, we have to continue asking them what kinds of issues we could resolve. I believe that Metal X UP’s biggest success has been to give Metal One Group the tools needed to address customer operational issues.

Kawada

I think that for customers, being able to use Metal X UP for free makes it easy to adopt. We plan to leverage Metal X UP to take the lead in the steel distribution industry by enhancing its functionality and linking that to the resolution of many issues.

How do you want to promote Metal X UP’s growth from here on?

Okuno

In terms of our company’s digital concepts, we’ve designated Metal X UP as an interface linking us to customers. Linking all the information that customers seek, we are seeking to build an integrated system not just for orders, but one that also extends to purchasing, processing and deliveries. We plan for Metal X UP to be the point of contact with customers within that large system.

Manabe

We will be using Metal X UP to streamline operations by incorporating two-way communications regarding orders. After that, we want to extend its use in distributor operations in addition to handling our inventory items. In its final form, we want to link it to various suppliers and create the kind of platform that offers everything available, from materials to processed items. At Metal One Specialty Steel, we want Metal X UP to get close to what we envision as quickly as possible.
Yusuke Tanaka speaking.

Tanaka

We have assigned customer representatives respectively for East and West Japan at Metal One Sumisho Tubular Products’ Tubular Products Division. We have been promoting strategies centered around the two representatives in the east and west to expand the number of users.
The Metal X UP functions we are currently using are limited to basic transactions, but our company’s business is more complex. For most of our customers, what we offer includes some extra applications–such as processing or supplying plumbing materials–along with basic steel products transactions. I think that one issue for the future will be the extent to which we can outfit Metal X UP with the capabilities that we possess as a company.
Yusuke Tanaka speaking.

Kawada

We want to provide a full lineup of functions to handle the common issues that confront most customers. I think that any number of issues will come up. Our plan is to develop Metal X UP as a platform that is always being upgraded. The system already handles all categories of steel products, and eventually we want to make it a system possessing functions usable worldwide.

We want to develop it into a tool
that can contribute to the entire steel industry

What do you think about cooperation within the Metal One Group via Metal X UP?

Manabe

Because few companies were participating in the project when we started looking into it, the expense was the biggest bottleneck. We keenly felt that this kind of project would incur huge costs. However, Metal X UP is now up and running strong because it serves so many users that share the same kinds of needs and issues, and because Metal One took the lead to this extent. After listening to what everyone has said, it’s clear that Metal X UP users are also quite pleased. I believe we were able to achieve this because we are the Metal One Group.

Okuno

That’s really true. First, we are very appreciative that it is set up for use throughout the Group. When thinking about promoting the system, I believe now is the pivotal time. We should be able to increase the Group’s value by expanding users within the Metal One Group, of course, and outside the Group as well. I believe that it is possible because we can call on the Metal One Group’s capabilities.

Tanaka

I think that even though problems differ widely from company to company, there are issues in common. If we can pick up on those skillfully, the number of users should increase, and costs should come down for that part as well. Growth will likely also expand.

Kawada

Right. Developing Metal X UP has also turned out to be an opportunity for me to consider industry issues, and I think it will be linked to my efforts from here on.
Everyone at Group affiliates has also worked on it enthusiastically, and with an awareness of the issues. I believe that it will make the Metal One Group even stronger if this proactive attitude permeates the whole Group.

Enomoto

From the outset, I did not want to make Metal X UP something for use within Metal One alone, nor is this the goal line. By also having our competitors use Metal X UP, I want to create a tool that provides solutions for the many issues in the industry, including its business practices, which cannot be resolved without the cooperation of the whole industry.
That said, Metal X UP is just one tool, and the key is to clarify the issues that customers and the whole industry face, and then providing solutions. To that end, I believe that what we, the Metal One Group, should do is to promote communication via Metal X UP as we work according to the abovementioned mindset. By doing so, I think our value will go up and what we do will be linked to contributions to the steel industry as a whole.

Thank you very much for your time today.

Five speakers are smiling warmly and chatting pleasantly.

SPEAKER

  • Shunichi Enomoto

    Shunichi Enomoto

    Supervising Manager
    Tubular Products Business Unit, Metal One Corporation

  • Naoto Kawada

    Naoto Kawada

    QOLABO Unit, Digital Transformation Department,
    Metal One Corporation

  • (Ryoichi Manabe

    Ryoichi Manabe

    Manager
    Osaka Steel Plate Business Section, Steel Plate Department, Metal One Specialty Steel Corporation

  • Takashi Okuno

    Takashi Okuno

    Project leader
    Sales Operation DX Project,
    BPR Office, Sus-Tech Corporation

  • Yusuke Tanaka

    Yusuke Tanaka

    Team leader
    Tokyo Team No. 3, Tubular Products Department (East Japan No. 1), Tubular Products Division, Metal One Sumisho Tubular Products Co., Ltd.