SAP Innovation Awards 2024 - 4385 - ArcelorMittal Nippon Steel India
ArcelorMittal Nippon Steel (AM/NS) India is integrated steel mill with operations from mines to downstream facility across ~30 locations in India including 6 service centers, 20+ Hypermarts, 600+ grades, 250+ product models, currently 10,000+ orders/month, 35,000+ Shipments/month along with an expansion plan of increasing capacity by 5 times in the next decade. As a result, AM/NS needed a robust digital platform to drive the growth as well as optimize an inquiry-to-order systems. Dokument herunterladenPUBLIC
Entry Pitch Deck
ArcelorMittal Nippon Steel India Limited
Renuka Kulkarni
Bhushan Deshpande
Metal, Mining, Mill Products
Transforming to a modern, customer centric digital
platform driving growth, competitive advantage and
profitability
Entry Pitch Deck
ArcelorMittal Nippon Steel India Limited
Renuka Kulkarni
Bhushan Deshpande
Metal, Mining, Mill Products
Transforming to a modern, customer centric digital
platform driving growth, competitive advantage and
profitability
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
ArcelorMittal Nippon Steel India
Limited
Registered office at AMNS House,
Surat- Hazira Road, Surat, Gujarat
Metals and Mining (Steel)
https://www.amns.in/
5500+
ArcelorMittal Nippon Steel India (AM/NS India) is a joint venture between ArcelorMittal and
Nippon Steel – two of the world’s leading steel companies
AM/NS India is an integrated flat carbon steel manufacturer - from Mines ,iron ore to ready-to-
market steel products. The company’s manufacturing facilities comprise ironmaking,
steelmaking, and downstream facilities spread across 30+ locations India and 3 countries with
current capacity of 9 million tons . AMNS has expansion plan of 2 times by 2026 and 5 times by
2035
At AM/NS India, the goal is to help create smarter, more sustainable steels for India, and the
world. To do this, the company places safety, innovation, and technology at the heart of its
manufacturing operations and product development
AM/NS India offers a wide range of steel, conforming to various international standards,
ascribing to being a trusted and reliable provider of steel to customers in India and beyond. We
serve a broad spectrum of consumers spanning cconstruction, infrastructure, defence,
packaging, energy, automotive, appliances
Become an industry leader in innovation, digitization and customer experience is the vision.
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
ArcelorMittal Nippon Steel India
Limited
Registered office at AMNS House,
Surat- Hazira Road, Surat, Gujarat
Metals and Mining (Steel)
https://www.amns.in/
5500+
ArcelorMittal Nippon Steel India (AM/NS India) is a joint venture between ArcelorMittal and
Nippon Steel – two of the world’s leading steel companies
AM/NS India is an integrated flat carbon steel manufacturer - from Mines ,iron ore to ready-to-
market steel products. The company’s manufacturing facilities comprise ironmaking,
steelmaking, and downstream facilities spread across 30+ locations India and 3 countries with
current capacity of 9 million tons . AMNS has expansion plan of 2 times by 2026 and 5 times by
2035
At AM/NS India, the goal is to help create smarter, more sustainable steels for India, and the
world. To do this, the company places safety, innovation, and technology at the heart of its
manufacturing operations and product development
AM/NS India offers a wide range of steel, conforming to various international standards,
ascribing to being a trusted and reliable provider of steel to customers in India and beyond. We
serve a broad spectrum of consumers spanning cconstruction, infrastructure, defence,
packaging, energy, automotive, appliances
Become an industry leader in innovation, digitization and customer experience is the vision.
CHALLENGE: SOLUTION: OUTCOME:
Transforming to a modern, customer centric digital platform driving growth,
competitive advantage and profitability
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Reduction from up to
7 days down to 1 day
to analyze, confirm
and process profitable
orders, leading to
competitive
advantage in speed to
quoting & winning
customer orders
Of handling master data
– Currently we have
around 600 discrete
SKUs in commerce
mapped to 30 product
models in AVC and this
help with flexibility &
scalability in the
growing product
portfolio..
ArcelorMittal Nippon Steel India Limited
Reduced complexity
• AMNS India is integrated Steel mill right from Mines, Iron making ,
Steel Making, Hot and cold rolling and down stream facility across
around 30 locations in India including 6 service centers and20+
Hypermart with Current capacity of 9 Million Tons / year
• AMNS India with 600+ grades, 250+ product models, currently
10,000+ orders/ month & expansion plan of increasing capacity by
5 times in next decade needed a robust, optimized enquiry to order
systems.
• Increasing customer expectations are driving us to fully transform to
a modern, customer centric digital platform thereby building
competitive advantage and enhancing profitability
• Ability to interpret customer demand and carry out real time checks
with visibility of product range, mill capability checks and pricing to
support this growth trajectory
• Seamless integration between new edge platforms to track enquiries,
negotiation and expedite order entry process.
• AMNS implemented SAP S/4HANA.Cloud, private edition, integration
with MES and L2 systems through SAP Process Integration/
Orchestration (PI/PO), SAP AVC (advanced variant configuration), SAP
CO (Controlling), SAP WCM (Work Clearance Management), SAP
EWM (Extended Warehouse Management), SAP Fiori, SAP Commerce
Cloud, SAP CPQ (Configure, Price, and Quote) integrated with
existing CRM application leveraging SAP BTP platform for SAP CPS &
SAP CPI services.. This ensures seamless enquiry, negotiations and
order management process
• The transaction volume is now 10000+ Orders per month and 35000+
Shipments per month
• The end-to-end integration provides excellent visibility of real time
product catalogues, mill capability & order dressing checks, pricing,
other information required to negotiate the offers & seamless order
entry process with improved cycle time.
• A large portion of productivity improvements were achieved by
boldly challenging accepted practices and / or operational norms. We
adopted SAP best practices to improve & automate the processes.
• SAP AVC allows for the flexible configuration of complex steel
products with single product modelling leveraging accuracy of any
configuration channel to manage complex product portfolio.
• Advance VC check has helped to reduce inconstancy in
configuring process up to 80%.
• SAP CO with AVC has provided real-time inventory valuation and
sales order & production costing at various levels. This also led
to faster month end closing (from days to hours)
• Achieved clearer visibility to profitability at customer, order,
product, grade level etc. helping driving stronger business
strategy.
• AMNS is realizing many benefits and outcomes including
improving end user productivity, operational efficiencies,
enabling real-time visibility, improving customer satisfaction
with a view on demand.
• As a result, AMNS is now able to accelerate order processing and
address customer requirements quickly.
Up to 85% Leadtime for delivery
confirmation online.
Customers order centrally
in SAP and system
reviews location,
inventory & immediately
assigns delivery from
closest site – leading to
reduced lead time &
transportation costs with
improved on time in full
delivery.
Zero
New digital commerce platform enables
selling to small customer segments and
offers multiple new value-added services
like visibility on products, inquiry
generation, financing, e-document easy
return and refund process, claim settlement
etc. This is empowered with a seamless
integration of front & back office at product
model level.
The target is to run entire retail business on
this digital platform by 2025
New business models
Reduction in order
creation process time
through E2E integration
between digital
platforms.
This is enabled by
seamless integration in
enquire to quote, quote
to order & order to cash
application.
50%
Of overall net new retail
customer registration
& sales conversion
came with
implementation of this
new digital platform.
This has enhanced our
reach & provided
customers with
seamless online
experience.
60 %
Empower sales team for
better negotiation by
providing real-time
product configuration and
pricing guidelines
Visibility of real time
order status, ledger
balance, dispatch
tracking , e-document to
customer.
.
Real time
Transforming to a modern, customer centric digital platform driving growth,
competitive advantage and profitability
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
Reduction from up to
7 days down to 1 day
to analyze, confirm
and process profitable
orders, leading to
competitive
advantage in speed to
quoting & winning
customer orders
Of handling master data
– Currently we have
around 600 discrete
SKUs in commerce
mapped to 30 product
models in AVC and this
help with flexibility &
scalability in the
growing product
portfolio..
ArcelorMittal Nippon Steel India Limited
Reduced complexity
• AMNS India is integrated Steel mill right from Mines, Iron making ,
Steel Making, Hot and cold rolling and down stream facility across
around 30 locations in India including 6 service centers and20+
Hypermart with Current capacity of 9 Million Tons / year
• AMNS India with 600+ grades, 250+ product models, currently
10,000+ orders/ month & expansion plan of increasing capacity by
5 times in next decade needed a robust, optimized enquiry to order
systems.
• Increasing customer expectations are driving us to fully transform to
a modern, customer centric digital platform thereby building
competitive advantage and enhancing profitability
• Ability to interpret customer demand and carry out real time checks
with visibility of product range, mill capability checks and pricing to
support this growth trajectory
• Seamless integration between new edge platforms to track enquiries,
negotiation and expedite order entry process.
• AMNS implemented SAP S/4HANA.Cloud, private edition, integration
with MES and L2 systems through SAP Process Integration/
Orchestration (PI/PO), SAP AVC (advanced variant configuration), SAP
CO (Controlling), SAP WCM (Work Clearance Management), SAP
EWM (Extended Warehouse Management), SAP Fiori, SAP Commerce
Cloud, SAP CPQ (Configure, Price, and Quote) integrated with
existing CRM application leveraging SAP BTP platform for SAP CPS &
SAP CPI services.. This ensures seamless enquiry, negotiations and
order management process
• The transaction volume is now 10000+ Orders per month and 35000+
Shipments per month
• The end-to-end integration provides excellent visibility of real time
product catalogues, mill capability & order dressing checks, pricing,
other information required to negotiate the offers & seamless order
entry process with improved cycle time.
• A large portion of productivity improvements were achieved by
boldly challenging accepted practices and / or operational norms. We
adopted SAP best practices to improve & automate the processes.
• SAP AVC allows for the flexible configuration of complex steel
products with single product modelling leveraging accuracy of any
configuration channel to manage complex product portfolio.
• Advance VC check has helped to reduce inconstancy in
configuring process up to 80%.
• SAP CO with AVC has provided real-time inventory valuation and
sales order & production costing at various levels. This also led
to faster month end closing (from days to hours)
• Achieved clearer visibility to profitability at customer, order,
product, grade level etc. helping driving stronger business
strategy.
• AMNS is realizing many benefits and outcomes including
improving end user productivity, operational efficiencies,
enabling real-time visibility, improving customer satisfaction
with a view on demand.
• As a result, AMNS is now able to accelerate order processing and
address customer requirements quickly.
Up to 85% Leadtime for delivery
confirmation online.
Customers order centrally
in SAP and system
reviews location,
inventory & immediately
assigns delivery from
closest site – leading to
reduced lead time &
transportation costs with
improved on time in full
delivery.
Zero
New digital commerce platform enables
selling to small customer segments and
offers multiple new value-added services
like visibility on products, inquiry
generation, financing, e-document easy
return and refund process, claim settlement
etc. This is empowered with a seamless
integration of front & back office at product
model level.
The target is to run entire retail business on
this digital platform by 2025
New business models
Reduction in order
creation process time
through E2E integration
between digital
platforms.
This is enabled by
seamless integration in
enquire to quote, quote
to order & order to cash
application.
50%
Of overall net new retail
customer registration
& sales conversion
came with
implementation of this
new digital platform.
This has enhanced our
reach & provided
customers with
seamless online
experience.
60 %
Empower sales team for
better negotiation by
providing real-time
product configuration and
pricing guidelines
Visibility of real time
order status, ledger
balance, dispatch
tracking , e-document to
customer.
.
Real time
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4
At AM/NS India our vision is to become an industry leader in innovation, digitization and customer experience, and the SAP S/4HANA
integrated with Commerce Cloud go- live on April 1st 2023 was historic. Its implementation is also a demonstration of collaboration,
coordination and perseverance of several individuals across departments. It is a complex program with new age products, 30+ locations,
360+ business processes, 1780+ custom programs and 5500 users.
With this launch we now have a centralized and unified SAP system for all our locations in India and abroad. It is the foundation of our
digital transformation journey going forward. The AM/NS India team has done it once again and that is what makes us Consistently
Excellent.
- Dilip Oommen,
Chief Executive Officer
Our transformation to SAP S/4HANA is a definite step to make us future ready and agile, to rapidly understand and manage uncertainty as
well as providing a customer centric platform to support our future growth.
- Amit Harlalka,
Director and Vice President – Finance
AM/NS is a customer centric organization. The digital transformation journey we have undertaken is to be future ready and have an
integrated platform & optimized business processes to come much closer to our customers.
We transitioned successfully to SAP S/4HANA – thereby integrating end to end processes on a common platform.
- Bhushan Deshpande,
Chief Information Officer
At AM/NS India our vision is to become an industry leader in innovation, digitization and customer experience, and the SAP S/4HANA
integrated with Commerce Cloud go- live on April 1st 2023 was historic. Its implementation is also a demonstration of collaboration,
coordination and perseverance of several individuals across departments. It is a complex program with new age products, 30+ locations,
360+ business processes, 1780+ custom programs and 5500 users.
With this launch we now have a centralized and unified SAP system for all our locations in India and abroad. It is the foundation of our
digital transformation journey going forward. The AM/NS India team has done it once again and that is what makes us Consistently
Excellent.
- Dilip Oommen,
Chief Executive Officer
Our transformation to SAP S/4HANA is a definite step to make us future ready and agile, to rapidly understand and manage uncertainty as
well as providing a customer centric platform to support our future growth.
- Amit Harlalka,
Director and Vice President – Finance
AM/NS is a customer centric organization. The digital transformation journey we have undertaken is to be future ready and have an
integrated platform & optimized business processes to come much closer to our customers.
We transitioned successfully to SAP S/4HANA – thereby integrating end to end processes on a common platform.
- Bhushan Deshpande,
Chief Information Officer
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
• ArcelorMittal Nippon Steel India Limited works with more than 30
Locations across PAN India, Indonesia and Dubai with wide range of
flat steel manufacturing and service center facilities.
• Required robust landscape to support huge expansion plan of
organization of increasing the capacity 2 times by 2026 and 5 times by
2035
• Localization of processes- Each of these locations had decentralized
business processes hence high turnaround time to incorporate new
business processes
• The landscape is 20-year-old with last SAP implementation done
around 15 years back and system was heavily customised over the
time.
• Visibility - On actual product costs, profitability, treasury control and
budget management.
• Demanding technological initiatives in digital Roadmap which require
data from ERP
• AMNS India had challenges in order entry process more than 4 to 5
days of lead time to confirm the order.
• Real time visibility of pricing and mill capability to sales executives for
offer negotiation and visibility of deviations to technical team
• Inventory Valuation and Sales order costing for Profitability by
Customer – Product Grade etc.
• Access to the complete range of high quality AMNS products in a
single stop for the Customer
• Practical challenges faced by customer to know the fair price of
products, availability and payment terms as set by the company
leading to loss of credibility
• AMNS being metal manufacturing and Safety comes first for us,
availability of Safety Permit and certificates
• There was no tool to monitor and track Capex projects and WBS
structures.
• Previous implementation was done 15 years ago and lot of new
processes / scenarios are added with heavy location specific
customizations, High turn-around time to incorporate new Business
Requirements
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
• ArcelorMittal Nippon Steel India Limited works with more than 30
Locations across PAN India, Indonesia and Dubai with wide range of
flat steel manufacturing and service center facilities.
• Required robust landscape to support huge expansion plan of
organization of increasing the capacity 2 times by 2026 and 5 times by
2035
• Localization of processes- Each of these locations had decentralized
business processes hence high turnaround time to incorporate new
business processes
• The landscape is 20-year-old with last SAP implementation done
around 15 years back and system was heavily customised over the
time.
• Visibility - On actual product costs, profitability, treasury control and
budget management.
• Demanding technological initiatives in digital Roadmap which require
data from ERP
• AMNS India had challenges in order entry process more than 4 to 5
days of lead time to confirm the order.
• Real time visibility of pricing and mill capability to sales executives for
offer negotiation and visibility of deviations to technical team
• Inventory Valuation and Sales order costing for Profitability by
Customer – Product Grade etc.
• Access to the complete range of high quality AMNS products in a
single stop for the Customer
• Practical challenges faced by customer to know the fair price of
products, availability and payment terms as set by the company
leading to loss of credibility
• AMNS being metal manufacturing and Safety comes first for us,
availability of Safety Permit and certificates
• There was no tool to monitor and track Capex projects and WBS
structures.
• Previous implementation was done 15 years ago and lot of new
processes / scenarios are added with heavy location specific
customizations, High turn-around time to incorporate new Business
Requirements
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• AMNS has Migrated into SAP S/4HANA with clear objectives which
are in line with the organization’s objectives and roadmap for next 10
years
• Moving to a “Digital Core for an Intelligent Enterprise Journey”
through SAP S/4HANA to support the landscape with New edge
technologies for Harmonization, digitalization and automation of
processes across functions.
• Robust and integrated landscape to support
• Transformation of processes to reduce the cycle time, improved user
experience and delighted customers
• Faster account closure and better profitability visibility.
• Adoption of Cloud to improve the ability to digitally transform the
whole ecosystem and will ensure 100% availability of system.
• System response for adopting real-time analytics to help business to
take quicker decisions by reducing the overall turnaround time.
• Benefits of the S/4HANA implementation come in the form of speed
of transaction with in -built memory and cloud hosted Server which
ensures data security and High availability.
• To drive financial transformation. Profitability Analysis, Regulatory
Compliance and Safe Working Practices.
• SAP AVC for product models building with predefined Mill capability
checks, business & order dressing rules, pricing conditions and
respond quickly to changing customer requirements and market
trends
• SAP CPQ to reuse the product configuration and real time pricing
from S/4 HANA for offer negations with customers as and when
required.
• SAP Commerce Cloud for B2C customers enabled us to reach small
customers and improve sales
• SAP Business Technology Platform (BTP) platform enabled the
secured and real time integration with SAP ERP
• We have used SAP standard best practices & architecture which
gives us an excellent capability of scalability which will help us to roll
out in acquisitions and expansions.
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• AMNS has Migrated into SAP S/4HANA with clear objectives which
are in line with the organization’s objectives and roadmap for next 10
years
• Moving to a “Digital Core for an Intelligent Enterprise Journey”
through SAP S/4HANA to support the landscape with New edge
technologies for Harmonization, digitalization and automation of
processes across functions.
• Robust and integrated landscape to support
• Transformation of processes to reduce the cycle time, improved user
experience and delighted customers
• Faster account closure and better profitability visibility.
• Adoption of Cloud to improve the ability to digitally transform the
whole ecosystem and will ensure 100% availability of system.
• System response for adopting real-time analytics to help business to
take quicker decisions by reducing the overall turnaround time.
• Benefits of the S/4HANA implementation come in the form of speed
of transaction with in -built memory and cloud hosted Server which
ensures data security and High availability.
• To drive financial transformation. Profitability Analysis, Regulatory
Compliance and Safe Working Practices.
• SAP AVC for product models building with predefined Mill capability
checks, business & order dressing rules, pricing conditions and
respond quickly to changing customer requirements and market
trends
• SAP CPQ to reuse the product configuration and real time pricing
from S/4 HANA for offer negations with customers as and when
required.
• SAP Commerce Cloud for B2C customers enabled us to reach small
customers and improve sales
• SAP Business Technology Platform (BTP) platform enabled the
secured and real time integration with SAP ERP
• We have used SAP standard best practices & architecture which
gives us an excellent capability of scalability which will help us to roll
out in acquisitions and expansions.