ERP for Steel Fabrication Industry

ERP for Steel Fabrication Industry

SAP Gold Partner · Steel Fabrication ERP · MTR Traceability · Job Costing · Nesting · Welding Compliance

ERP for Steel Fabrication Industry

Steel fabrication businesses live and die by two things that generic ERP handles poorly: heat traceability and job costing. Every plate, section or tube that enters your yard carries a heat or melt number. That heat number — and the Material Test Report that documents its chemical composition and mechanical properties — must follow every piece through cutting, fabrication and welding to the final delivery certificate. Losing that chain, even once, means a rejected delivery, a failed third-party inspection or a liability exposure on a structural project.

Job costing is equally critical. A structural steel fabricator quoting a multi-tonne assembly is pricing material, cutting time, fabrication hours, welding, surface treatment and delivery into a single contract figure. Generic ERP tracks cost by production order, not by customer job. That means programme managers are back on spreadsheets calculating whether the job made money — after it ships, when there is nothing left to do about it.

2iSolutions implements SAP Business One and SAP S/4HANA for structural steel fabricators, plate fabricators, section steel processors, steel service centres and heavy engineering fabrication shops — with configuration templates built around the actual operational complexity of the steel industry: weight-based inventory, heat-linked MTRs, cut-plan and nesting management, WPS/PQR welding compliance, NDT records and job-level cost reporting.

What the ERP Covers
📄
MTR & Heat Traceability — Heat number from receipt to delivery cert
⚖️
Weight-Based Inventory — kg/MT management with remnant tracking
✂️
Nesting & Cut Optimisation — Cut plans, yield tracking, offcut stock
🔥
Welding Compliance — WPS, PQR, welder qualification records
💰
Job-Based Project Costing — Actual vs estimated per contract
Heat TraceMTR linked from goods receipt to delivery certificate
Weight Stockkg and MT inventory with remnant and offcut management
Job CostingActual vs estimated — material, cutting, welding, coating
WPS / NDTWelding procedure and inspection records in ERP
Production Flow

From certified steel receipt to MTR-packaged delivery — ERP at every stage

Steel fabrication follows a clear production sequence — each stage generating data that must be recorded, linked to the original heat number and ultimately packaged into the delivery documentation. ERP manages the linkage automatically so the MTR package assembles itself rather than being compiled by hand at despatch.

Steel Fabrication — Production Flow & Heat Traceability Layer
Steel GR + MTR → Nesting / Cut → Fabrication / Welding → NDT / Inspection → Surface Treatment → Certified Despatch
Steel GR & MTR Heat number MTR attach Grade / spec Lot quarantine HEAT# Nesting & Cutting Cut plan / CNC Plasma / laser Yield tracking Offcut → stock Heat retained NEST Fabrication & Welding Fit-up / tack WPS assigned Welder ID logged PQR referenced WPS NDT & Inspection UT / RT / PT / MT Dimensional check 3rd-party QA Pass / NCR raised NDT Surface Treat & Despatch Blast / primer Final coat / DFT MTR pack generated Delivery note Job closed MTR PKG ERP — Heat Traceability & Job Cost Layer Heat# → MTR → Cut plan → Weld records → NDT results → Surface cert → Delivery MTR pack SAP Business One · SAP S/4HANA · Job cost actual vs estimated · every tonne · every joint · every delivery
Heat Trace
MTR linked from GR to delivery certificate
Job Cost
Actual vs estimated — every contract
Nesting
Cut-plan optimisation with remnant tracking
WPS / NDT
Welding and inspection records in ERP
ERP Capabilities

Six ERP capabilities built for steel fabrication

2iSolutions configures SAP Business One and SAP S/4HANA with steel fabrication templates — addressing the heat traceability, weight inventory, job costing and welding compliance requirements that generic ERP configurations leave as manual workarounds.

Heat & MTR Traceability

Every incoming steel item — plate, section, pipe, bar — receives a heat or melt number at goods receipt. The Material Test Report is linked to the heat number and stored in the system. When a plate is cut into components, each component inherits the heat number of the parent plate. When components are welded into an assembly, the assembly's material record references every heat number used. At despatch, the ERP assembles the complete MTR package automatically — every heat used in the delivery, with the associated certificate, without anyone having to compile it by hand.

Weight-Based Inventory

Steel inventory managed in kilograms and metric tonnes — not pieces. Each stock item holds grade, specification, dimensions, heat number, physical location and weight-on-hand. Goods receipt books in the actual weighed weight, not the theoretical weight. Issues to production order are in kilograms. Remnants and offcuts from cutting are booked back into stock by weight with their heat number retained, so they remain traceable and re-usable on future jobs rather than being lost to "stock shrinkage."

Nesting & Cut-Plan Management

Cut plans — whether generated in a separate nesting software or manually — are linked to the production order in ERP. Material consumption is tracked against the cut plan: theoretical yield versus actual yield, scrap weight by cut type (plasma, laser, oxy-fuel, saw) and offcut weight returned to stock. Integration with popular nesting software (ProNest, Lantek, SigmaNEST) via import or API where the client already uses one of these tools. Cut yield variance reporting by job identifies where material loss is consistently above standard.

Welding Procedure & Qualification Management

Welding Procedure Specifications (WPS) and Procedure Qualification Records (PQR) maintained in ERP with their scope of qualification — base metal groups, filler metals, joint types, position and heat input range. Each weld operation on a production order references the applicable WPS and records the qualified welder ID. Welder Qualification Records (WPQ) held in ERP with expiry dates — the system alerts when a welder's qualification is approaching expiry, preventing an unqualified weld from being performed and discovered only at third-party inspection.

NDT & Quality Inspection Records

Non-Destructive Testing results — ultrasonic testing (UT), radiographic testing (RT), magnetic particle inspection (MT), penetrant testing (PT) and visual inspection — recorded against each weld joint or inspection location within the production order. Acceptance status (pass, repair required, reject) drives workflow — repair welds require a re-test record before the job can proceed to surface treatment. Third-party inspection certificates uploaded against the inspection record. Non-conformance report (NCR) raised automatically on failed inspection, with corrective action and re-inspection workflow.

Job-Based Project Costing

Every cost — material at actual purchase price by heat number, cutting machine hours at standard rate, fabrication and welding labour hours at trade rate, sub-contract operations (hot dip galvanising, specialist NDT, third-party inspection), consumables and surface treatment — charged to the customer job number. Real-time cost-to-date versus estimated cost visible to the job supervisor during production, not compiled into a retrospective margin report after despatch. Contribution margin reporting by job, by customer and by product type identifies which contracts are profitable and which are consuming margin.

Industry Segments

Three steel fabrication segments — each with distinct ERP configuration needs

Structural steel fabricators, steel service centres and heavy plate fabricators share common ERP foundations but have different priorities in how inventory, traceability and costing are configured. One implementation template does not fit all three.

🏗️

Structural Steel Fabricators

Build-to-drawing assembly fabrication for construction, infrastructure and industrial projects. Key ERP requirements: project-based job costing (the entire order is one job, not a batch of identical pieces), drawing revision management, welding procedure qualification records for structural welding standards (EN ISO 15614, AWS D1.1), third-party inspection witness points, surface treatment specification tracking and MTR documentation packaged per project delivery.

⚙️

Steel Service Centres

Cut-to-size and processed steel distribution — plate, section, tube and bar. Key ERP requirements: multi-unit inventory (weight and piece count simultaneously), heat number preservation through every cut and processing operation, nesting and remnant management, first-in-first-out or customer-specific heat allocation, certificate of conformance generation per delivery and rapid quote-to-despatch cycle for high-volume repeat orders.

🔩

Heavy Plate & Pressure Vessel Fabrication

Pressure vessels, storage tanks, heat exchangers and heavy structural fabrication to pressure design codes (ASME VIII, PD 5500, EN 13445). Key ERP requirements: full material traceability to design code requirements, weld map management (every weld joint recorded with its WPS, welder, filler material and heat treatment record), PWHT documentation, hydrostatic test records, Notified Body and Authorised Inspector witness points and complete data book generation for the design authority sign-off.

Why 2iSolutions

What steel-specific ERP configuration delivers that a generic setup cannot

MTR Package Assembled Automatically

The most time-consuming despatch task in any steel fabrication business is assembling the MTR package — finding the original mill certificates for every heat used in the delivery, photocopying them, matching them to the delivery documentation and getting them into the consignment before the truck leaves. We configure ERP so the MTR package is a report, not a task: the system knows which heats are in which delivery and retrieves the associated certificates automatically. Despatch packs in minutes, not hours.

Job Cost in Real Time, Not Month-End

Knowing a job lost money three weeks after it shipped is not management information — it is history. We configure job cost reporting so the project supervisor can see cost-to-date versus estimate at any point during production: how much material has been issued, how many hours have been confirmed, what sub-contract operations have been invoiced. Cost overruns are visible while there is still time to act — adjust the remaining scope, have a commercial conversation with the customer or at minimum understand what happened before quoting the next similar job at the same wrong price.

Steel Industry Configuration Templates

21 years of manufacturing ERP delivery means we have pre-built configuration templates for steel fabrication — heat number management structures, weight-based UoM conversions, remnant material types, welding procedure master data objects, NDT inspection plan templates and MTR report layouts. These templates reflect how steel fabrication actually works, not how a generic ERP trainer assumes it works. Implementation starts from a working model, not a blank system.

ShopConnect for Shop Floor Tracking

Our ShopConnect manufacturing execution system extends SAP with real-time shop floor tracking — work order status at each work centre, welder ID capture at welding operations, NDT result recording at inspection, and label printing for component identification throughout the fabrication sequence. For fabrication businesses where a job moves through fitting, welding, grinding, inspection and surface treatment across different work areas, ShopConnect provides the real-time visibility that keeps job cost and schedule accurate without relying on operators remembering to update the system at end of shift.

Track Record

246+ manufacturing ERP implementations. 98% on-time. 21 years of industrial ERP delivery across metals, engineering and fabrication.

2iSolutions has delivered SAP ERP across discrete manufacturing, automotive, engineering and heavy industrial sectors — with industry-specific templates and our own ShopConnect MES and barcode solutions that bridge the gap between ERP and the shop floor.

246+IMPLEMENTATIONS
98%ON-TIME DELIVERY
21 yrsMANUFACTURING ERP
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FAQ

ERP for steel fabrication: questions buyers ask most

Generic ERP manages production at order and material level — a production order consumes X kg of steel and produces Y tonnes of fabricated assembly. Steel fabrication needs more: which heat number was the material from (heat traceability), does the Material Test Report confirm the grade and specification are correct for the design standard (MTR management), what was the actual yield from the cut plan versus the theoretical yield (nesting and cut waste), which qualified welder performed which weld using which approved procedure (WPS/PQR/WPQ management), what NDT method was applied to which joints and what were the results (inspection records), and what did the job actually cost versus what was estimated (job-based project costing). None of these are standard out-of-the-box in a generic ERP without specific configuration — which is the difference between an ERP that reflects how a steel fabrication business actually operates and one that requires a parallel system of spreadsheets and paper records to fill the gaps.

Heat traceability in SAP works through the batch management framework. When steel is received, a batch record is created with the heat or melt number as the batch classification. The supplier's Material Test Report — the document that records chemical composition, mechanical test results, treatment condition and applicable standard — is attached to the batch record as a document link. When a plate or section is cut into smaller components on a production order, the component pieces are managed as separate stock items (or sub-batches) that inherit the heat number of the parent material. Offcuts and remnants returned to stock retain the original heat number. When components from potentially different heats are assembled into a fabrication, the production order's component list records which batch — therefore which heat — of each input was consumed. At despatch, a report queries which batches are in the delivery and retrieves the associated MTR documents, producing the complete certificate package without manual assembly. Forward trace works the same way in reverse: find a heat number and the system shows every order that consumed it and every delivery it shipped in.

SAP supports multiple units of measure per material, which is how weight-based steel inventory is managed. Each steel item — say, 10mm mild steel plate Grade S275 — is configured with kilograms as the base unit of measure and metric tonne as an alternate. A goods receipt for a plate delivery books the actual weighed weight of each plate in kilograms, not the theoretical weight calculated from dimensions. The yard location and heat number are recorded at goods receipt. When material is issued to a production order (cutting), the issue is recorded in kilograms — the weight of plate actually taken to the cutting machine. The cut plan records the theoretical weight of each component being cut. The difference between the issued plate weight and the sum of the component weights plus offcuts is the cut waste, recorded as a variance against the standard yield. Offcuts above the minimum reusable size are receipted back into stock — same material code, same heat number, weighed and booked in as offcut stock — rather than being written off as scrap. This remnant management means the heat traceability and weight accuracy of your yard inventory stays correct even as material moves through multiple cutting operations.

Welding procedures and welder qualifications are held as master data records in ERP. Each Welding Procedure Specification (WPS) record holds the reference standard (EN ISO 15614-1, AWS D1.1, ASME IX), the scope of qualification (base metal P-numbers or material groups, filler metal classification, joint type, welding position, essential variable ranges) and the reference Procedure Qualification Record (PQR) that qualifies it. When a production order is raised for a fabrication job, the routing operations include the applicable weld operations, and each weld operation references the WPS that must be used. When the welder confirms the operation, their employee ID is recorded against the weld. The system validates that the welder holds a current Welder Performance Qualification (WPQ) that covers the WPS in use — base metal, filler, position and process must all be within the welder's qualified range. WPQ expiry dates are tracked with configurable advance-warning alerts so the quality team knows which welders need to renew their qualifications before they expire rather than discovering an out-of-date certificate when a third-party inspector requests the documentation on site.

Yes — project-based job costing is a core configuration requirement for structural steel fabricators and is handled in SAP through the project system (PS) or through the production order with job-level reporting. Each customer contract is set up as a job in ERP. All costs that belong to that job — material issued from stock at actual purchase price, machine hours confirmed at cutting and fabrication work centres, welding and fitting labour hours, sub-contract operations (galvanising, specialist NDT, painting), consumables and bought-in items like shear studs, bolts and lifting lugs — are posted against the job number. Estimated costs are loaded from the quotation or bill of quantities at the start of the job, creating a budget. Real-time reporting shows cost-to-date versus budget at any point during fabrication, broken down by cost element (material, labour, sub-contract, overhead). This means a job supervisor can see that the material cost is tracking to budget but fabrication hours are 20% over-run at the midpoint — while there is still scope to tighten the remaining work rather than absorbing the loss silently. At job completion, the actual margin is calculated against the contract value and reported alongside similar historical jobs for continuous improvement of the estimating model.

Pressure vessel fabrication to ASME VIII, PD 5500 or EN 13445 requires a data book — the complete record of materials, welding, NDT, heat treatment and testing — that is submitted to a Notified Body or Authorised Inspector for statutory sign-off. In ERP, the data book content is built continuously as the vessel is fabricated rather than compiled retrospectively. Material certificates are attached at goods receipt, linked to the heat numbers used in each component. Weld records — WPS reference, welder qualification, filler material heat number, preheat temperature, interpass temperature, PWHT record — are recorded against each weld joint identified by the weld map reference number. NDT certificates are uploaded against each joint's inspection record. Hydrostatic test parameters and results are recorded against the production order. The data book report is a formatted output of all these linked records, structured to the content requirements of the applicable design code. For fabricators who deal with witness inspection — where the Authorised Inspector or customer inspector has hold points they must attend — the ERP inspection workflow includes a notification step that triggers the inspection request, preventing the fabrication from progressing past a witness point without the inspector having been given the opportunity to attend.

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Ready to implement ERP that handles heat traceability, job costing and welding compliance properly?

2iSolutions delivers SAP Business One and SAP S/4HANA for structural steel fabricators, service centres and pressure vessel manufacturers — with heat-linked MTR traceability, weight-based inventory, WPS/PQR management and ShopConnect for real-time shop floor tracking.