In early game, that looks something like this:

With electric furnaces, it is a lot easier since you don't need the separate coal line, so the ore can be central with an iron furnace on both sides, both given directly to the steel furnace.
Advantage: No more juggling between iron to steel mills and iron to the rest of the factory. Automatically correct ratio for adding new steel furnaces.
Downside: iron is not fed to the rest of the factory if no steel is needed, and each iron furnace stores 100 plates (again, if no steel is needed).
What do most people do?