Celsa UK: Enabling closer collaboration with carriers to create a future-ready supply chain network
Explore Celsa UK’s journey with SAP
When steel producer Celsa UK looked to improve cost-efficiency and visibility across its logistics network, it realized that effective collaboration with its carriers would be key to success. To help it achieve this, the company implemented SAP S/4HANA Cloud Private Edition, transportation management and the SAP Business Network Freight Collaboration solution.
| Industry | Region | Company Size | Partner |
| Mill products | Cardiff, United Kingdom | 1,649 employees | Westernacher Consulting |
savings on transport costs.
of road carriers collaborating through the network.
on-time deliveries.
CIO, Celsa Group
Leading the way in circular and low-emission steel production
Part of the Celsa Group S.A., Celsa UK Holdings Ltd. (Celsa UK) is one of the United Kingdom’s largest manufacturers of long steel products used in the construction sector. Recycling more than 8 million tonnes of ferrous scrap metal and delivering around 1.2 million tonnes of finished products each year, the company is a pioneer in circular and low-emission manufacturing techniques.
Celsa UK is embracing next-generation technology across its operations to help meet its goal of leading the way in the production of low-carbon, recycled steel. So, when it recognized that manual workflows were slowing down transportation planning and execution processes, the company looked to technology for answers.
To improve efficiency and visibility of transport operations, Celsa UK decided to implement an integrated, collaborative transportation management solution. It wanted to enable real-time communications and transactions with carriers, improving supply chain visibility and helping the company react quickly to address any delivery issues.
Achieving a successful implementation with strong partners
Impressed by the partnership it developed with SAP during an ongoing deployment of SAP S/4HANA Cloud Private Edition using the RISE with SAP offering, Celsa UK decided to deploy a new transportation management solution based on SAP software. With help from SAP partner Westernacher Consulting, the company implemented SAP S/4HANA Cloud Private Edition, transportation management and the SAP Business Network Freight Collaboration solution (part of SAP Business Network for Logistics) across its sites.
The implementation took just eight months, with a series of workshops run by Westernacher to help establish effective communications across Celsa UK personnel and Celsa Group teams in Spain. The services team from SAP supported the onboarding of carriers using a wave approach, successfully onboarding a total of 17 carriers to date. The SAP team is available for ongoing support as more carriers are added to the network.
Now, vehicle scheduling and routing and carrier selection in SAP S/4HANA Cloud Private Edition provide transport planners with recommendations on which carriers to use for different loads, based on cost-efficiency and their specific capabilities. Meanwhile, freight collaboration through SAP Business Network Freight Collaboration connects planners and carriers, with detailed information about new and booked loads, associated costs and schedules, and the ability to settle through digitalized invoicing. The integrated network solution also provides Celsa UK with KPIs related to loading times, dispatches, and on-time deliveries.
Working closely with suppliers to drive efficiency and reduce costs
The new transport management solution makes it easier for Celsa UK to effectively manage delivery capacities, maximize resource utilization, and handle priorities with assigned carriers. As a result, the company has seen significant cost savings and a return on its investment from the project within the first year.
The solution is also saving time for transport planners. Instead of manually sending individual e-mails to carriers to assign each load, they automate the assignment of up to 80 loads to the same carrier with a single click. This means they can focus on higher-value activities such as achieving cost savings by negotiating competitive haulage rates.
Invoicing is another key area where the solution has delivered efficiencies. Rather than receiving numerous invoices for different aspects of carrier services, Celsa UK now receives a single, consolidated, digitalized document through SAP Business Network Freight Collaboration, reducing processing time for transport managers and accounts staff. Meanwhile, the ability to track and analyze costs helps inform decision-making for transport management teams, enabling them to refine their strategy to achieve more cost-effective logistics operations.
Rolling out the deployment to support a profitable and sustainable future
Following the successful deployment at Celsa UK, Celsa Group will be implementing SAP S/4HANA Cloud Private Edition, transportation management and SAP Business Network Freight Collaboration across its Spanish plants in the coming year. After that, it plans to deploy the software at its other European sites.
Celsa UK is also looking at integrating the transport management solutions with the SAP Sustainability Footprint Management solution. This will help calculate the carbon emissions associated with transport operations, helping refine the company’s carbon reduction strategy.
In addition, Celsa UK is now exploring the deployment of as-yet unused functionality within the offerings, such as enabling the booking of warehouse slots to minimize waiting times for carriers. The company is also considering using the solutions to expand beyond road transportation to reach rail shipping as well.
Want to know more about Celsa UK?
“Celsa: Using [RISE with SAP, SAP S/4HANA Cloud Private Edition, transportation management], and SAP Business Network for Logistics to Reduce Loading and Waiting Times” (SAP Video)
Featured partner
Operating worldwide, SAP partner Westernacher Consulting provides in-depth expertise in the design and implementation of complex IT systems. The IT consultancy provided Celsa UK with guidance and practical implementation support, ensuring a smooth and successful deployment of its new transport management and business network solution.