CASE STUDY

SIJ Group

connects major logistics divisions to achieve efficiency-boosting synergy

About SIJ

SIJ Group specialises in producing and shipping stainless steel quarto plates, alloyed tool steels (rolled and forged products), high-strength and wear-resistant steels, and non-oriented electrical plates and coils – from the mills, to local and international markets, by all means of transport. 

SIJ Group consists of 33 companies globally - the majority of them in Slovenia and also in Italy, Germany,  the US and the Middle East. The SIJ Group reports annual revenues of over 1 billion euros, with an annual transport spend of circa 24 million euros. 

 

The Transporeon platform has become the only system that orchestrates and harmonises all of our logistics operations, a kind of ERP for logistics.

Dmitry Novitskiy,
Director of Logistics
SIJ d.d.

The challenge

Before implementing Transporeon, the SIJ Group was not considered as a preferred shipper for many LSPs. What was going on? 

Each company was handling outbound transportation according to its own set of rules, relying on isolated pools of LSPs (Logistics Service Providers), and entirely manual processes. This way of working resulted in a ‘true to type’ set of problems, including:

  • Challenges in maintaining transparency due to the decentralised nature of operations.

  • Variation of operating principles, approaches, and processes across different companies.

  • Inefficiencies due to manual processes reliant on the human factor.

  • Instances of misinterpretation and misuse of information arising from the decentralised approach.

  • Unhealthy competition among LSPs due to isolated pools and lack of collaboration.

  • Elevated stress levels for all parties involved in the logistics processes.

  • The Logistics Service Consumer was perceived as less attractive due to these existing challenges.

As a result, the SIJ Group frequently encountered capacity constraints, as well as a heap of other challenges.

 

The journey

It was spring 2016 when the SIJ Group was first introduced to Transporeon. 

In October 2016, the first Scheduling Unit was deployed and went live. Since then, Transporeon has been deployed within each Steel and Manufacturing Division company, and the scope for integration was completed in February 2018. 

From the start, Transport Assignment and Attachment Service were chosen for implementation, and later on Time Slot Management was introduced for its complementary features.

 

Solutions and benefits

Years back, zero synergy existed between the SIJ Group’s five main factories. Now, all five are connected, and benefit from one single logistics strategy.

Standardised approaches and processes across multiple sites helps to ensure a more synchronised supply chain, meanwhile automation has significantly improved accuracy and reliability, and greatly reduced the risk associated with human error. Fundamentally, LSPs enjoy a much enhanced experience when interacting with the SIJ Group, providing a valuable reputational boost to the Logistics Service Consumer.

The results

“Transporeon is our operating system for logistics.” 

Already well-established since completing the integration at the start of 2018, logistics processes at the SIJ Group remain vastly improved. 

LSPs now benefit from accurate and standardised transport orders, timely pickups with reduced waiting times, and proactive communication. All these factors make it much smoother and more profitable to work with the SIJ Group, and add up to an enhanced overall experience for LSPs.

 

Facts and figures

  • Comprises 33 companies globally 
  • Headquartered in Slovenia, where four major production sites drive the majority profits for the SIJ Group
  • 340,000 tons shipped per year:

     

    • 70% of which Logistics Department has responsibility for (according to Incoterms, based on sales contracts)
    • 30% is handled by external partners

     

  • Annual transport spend approx. 24 million euros
  • Over 1 billion euros reported annual revenue

SIJ Group sees deep efficiency improvements: Ocean Visibility spotlight

The SIJ Group embarked on 2024 with new levels of insight into ocean transports since going full steam ahead with implementation in December 2023. Within just one month, tens of transports were tracked between Europe and North America to enable sharper use of resources, newfound capabilities for advance planning, and a better way of working all round. Open the case study to discover our collaboration’s latest developments in depth.

PRODUCTS

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Transport Execution Hub

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  • Transport Operations uses smart, data-driven workflows to automate the whole transport execution and monitoring process.

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