Steel industry creates great backward and forward effects. As it is growing fast, securing international competitiveness is essential in the current stage. Furthermore, as customers's demand for small quantity batch production increases. the resulting increase of the indirect manufacturing cost in steel industry also deteriorates the competitiveness. In view of the immensity of steel products, the international competitiveness cannot be maintained unless the ratio of distribution costs in the indirect manufacturing cost is reduced.
To improve the condition of steel distribution, it is necessary to take imminent and implementable measures first and to take further steps one after another as to mid/long-term plans in consideration of the current status. As stated earlier, the government should prepare better distribution plans by introducing related bills, in the short run. while steel manufacturing companies seek to use public distribution facilities among companies in the same type of business, to conduct discussions on shipping of different types of items on the same vehicle, and to establish a cooperative system for Interregional Backhauling Transportation System. In the long run, the government should take the lead of founding and investing into public distribution bases while steel making companies considerately promote 3PL to some extent rather than insisting exclusive distribution system under existing 2PL in order to create an atmosphere so that distributing companies can be more specialized and larger in scale. In addition, distributing companies should secure competitiveness in distribution service by conducting the merger and abolition of small enterprises with multi-phase as well as establishing freight transportation system as long-term plans.
Since steel product distribution involve various interested parties in the market such as the government, steel makers, distributors, etc, it is vital to share a vision to secure competitiveness by improving distribution services and carrying them forward in a long-term view. To this end, the government, steel makers, and distributors should secure a channel of regular consultations so that they can establish a relationship of mutual trust as a frequent consultative group. The consultative group to strengthen the distribution service competitiveness may discuss the following issues:
The consultative group for joint development of distribution industry should discuss the strategies for joint investment and operation after foundation of public distribution bases while steel makers and distributors talk over mutual route adjustment for multimodal transport and consolidation in both inland and maritime transportation.
Besides, companies should share information and standardize their systems for the establishment of distribution-related systems and integration among steel makers and distributors. As for consultation among steel makers and distributors, they should jointly suggest plans for the development steel item distribution as well as improvement of the system and regulations to the government in request for its support.
As discussed above, this study is to address issues and improvement plans with regard to existing steel distribution in an attempt to develop domestic steel distribution industry in perspectives of those who are in charge of steel manufacturing and distributing. In fact, steel makers need to take more active positions for mutual development rather than develop theoretical logics. Basically, however, distributing companies should maintain their attitude to create values for customers from their distribution service. Lastly, the government should provide practical support for distributing companies promptly in consideration of the actual condition of the industry through Current Framework Act on Logistics Policies and Trucking Transport Business Act. Rather than lean-to-one-side policies focused on restrictions, it should revise the bills according to the actual condition and provide support for substantial improvement of the distribution service competitiveness. To this end, it may consider opening the industry to foreign distributing companies to improve the international competitiveness.