ArcelorMittal Simplified Its Process, Generating Data, Savings, and ROI
Summary:
ArcelorMittal, a global leader in steel production, faced significant challenges in its domestic and international freight procurement operations. With a high volume of freight quotations, the process was complex, time-consuming, and manual, requiring long hours of work. Additionally, the lack of transparency in data made it difficult to make assertive decisions.
After conducting market research, ArcelorMittal implemented the Cargo Sapiens. Using our advanced Artificial Intelligence algorithm, the company automated BID quotation equalization, reducing the analysis time from weeks to minutes. In addition to transforming the BID equalization process, the solution also cut down the analysis time for SPOT quotations from 15 minutes to just 1 minute.
As a result, there was a gain in time in delivering the cargo to the end user. An award-winning project that has been in operation since 2018 at ArcelorMittal Brazil and Argentina.
The connection with Cargo Sapiens brought a digital and disruptive change to our logistics purchasing processes. The BIDs are now conducted using artificial intelligence and analytics that maximize financial results, an optimization that would be impossible to achieve using Excel
Lucas Valden
Logistics Purchasing Manager | ArcelorMittal Brazil
The project partnership with Cargo Sapiens has been a success, now fully operational across all ArcelorMittal units in Brazil and ArgentinaIt was awarded 1st place in the XNUMX Continuous Improvement Initiative at ArcelorMittal, in the Operational Excellence category.
Claudia Silveira
Foreign Trade Manager | ArcelorMittal
A Cargo Sapiens supports us in making decisionsstrategic actions, since it generates management reports and allows us to establish metrics for the Hiring freight services in a smarter and more efficient way.
Sheyla Salebe
Supply Logistics Analyst | ArcelorMittal
Unprecedented Operational Efficiency
All this agility in the process allowed for faster decisions based on reliable data, ensuring tangible savings, transparency, and greater operational efficiency.
With the help of Cargo SapiensArcelorMittal also simplified and decentralized its invoice verification process. With all data available in the system, the results included time savings and better distribution of workload among analysts for freight closing and invoice verification.
Another gap eliminated through technology was Compliance. The tool significantly increased governance and transparency in logistics processes.
The technology also helped expand the pool of quality logistics providers without overburdening the team, promoting more competitive and secure negotiations in all transactions. As a result, ArcelorMittal achieved a cost reduction of over 10%.
In addition to reducing costs, the solution also delivered a high return on investment (ROI).
+10% cost reduction
Achieved over 10% reduction in logistics costs with Cargo Sapiens.
+90% efficiency
Increased 90% operational efficiency at ArcelorMittal through process optimization.
A new standard for operation
With the full integration of the platform Cargo Sapiens, ArcelorMittal started generating valuable data, which transformed its freight quoting and purchasing operations. Today, ArcelorMittal is a Success Case, inspiring other organizations to modernize their logistics operations and achieve outstanding results.