METAL & STEEL

WIRE ROD

€ 508 MILLION

 

 

 

Person working with liquid metal

ArcelorMittal

One of the largest steel producing companies saves costs with Transporeon

Customer

ArcelorMittal, a major global steel and mining company located in North Germany, was looking for time- and cost-saving logistics solutions to benefit its own operations as well as its suppliers, an established pool of trusted carriers, and end customers. With an annual achievable production capacity of over 2 million tons of steel on site and an industrial presence in 18 countries, outstanding supply chain and distribution networks are essential for this world-leading steel and mining company.

We are now able to assess the quality of the carriers objectively. After all, the satisfaction of our customers depends on timely deliveries.

Matthias Hirschberg, Head of Logistics
ArcelorMittal 

Challenges

In 2007 at one of the largest manufacturing plants, operations were being disrupted by:

  • Customers placing purchase orders at short notice as many do not have their own warehouses and therefore rely on just-in-time deliveries
  • Uncontrolled flows of incoming scrap deliveries and a highly complex complaints procedure
  • Unexpected fluctuations in the warehouse unloading/loading bays; staff were either over-challenged or idle; quality standards dropped
  • Problems with outbound flows caused truck congestion and jeopardized onsite safety, causing customer delivery delays; carriers waited up to three hours in peak period

Solution

ArcelorMittal selected a suite of Transporeon products, fully integrated with the existing SAP environment.

  • Transport Assignment to streamline the tendering processes:
    Fully automated assignment (predefined, contract-based criteria), and
    Day-by-day assignment (best price-performance ratio)
  • Time Slot Management to specify truck time slots, booked on an electronic schedule
  • Mobile Order Management for real-time order status tracking, unloading/loading processes and driver guidance; timestamped events; photographic evidence

Results

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CARRIER EFFICIENCIES

Truck turnaround time cut down to 50 Min. and waiting time cut 30%; demurrage and congestion minimized

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COST SAVINGS

Freight costs down by 10%; fewer loading/unloading staff required

 

OPERATIONAL CONTROL

Contracts for scrap purchasing; standardized complaints handling; better quality assurance and security

 

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COMPETETIVE ADVANTAGE

As customers can rely on timely deliveries, they are able to reduce their stock